Strategic Plan: Part Ii: Swott Analysis
Strategic Plan, Part II: SWOTT Analysis
BUS/475
August 1, 2013
Dr. Lenny Washington
Strategic Plan, Part II: SWOTT Analysis Kohl’s is a U.S. department store chain that sells a mix of items including men 's and women 's apparel, home decor, and accessories. The department store appeals to middle-class consumers by selling discounted branded and private label clothing and home goods. Kohl 's is in the same category of national department store competitors such as J.C. Penney and Macy 's Inc.
Kohl 's is vulnerable to a weak U.S. economy and declining consumer spending because the company has no stores outside of the US and does not have an international presence to serve as a buffer to fluctuations in the US economy. However, Kohl 's discounted pricing allows it to ride out tough economic times better than its competitors.
Economic Trends and Forces
Exclusive and private label merchandise account for almost half of Kohl 's sales, a figure Kohl 's has worked to increase by adding new exclusive brands like Helix, Mudd, Dana Buchman, and Hang Ten. Department stores are increasingly seeking to distinguish themselves and earn higher profit margins by offering exclusive brands and private label brands. Exclusive brands are brands marketed under the wholesaler 's name that are sold only in a particular chain; one exclusive brand at Kohl 's is the Chaps line by Polo Ralph Lauren. Private label brands are produced by wholesalers, but sold under the brand name of the retailer. Exclusive brands such as Simply Vera by fashion designer Vera Wang can help draw customers into Kohl 's stores, as the products can only be found at Kohl 's. Kohl 's own private label products are typically priced lower than branded merchandise, but have a higher profit margin for Kohl 's as the retailer is able to receive the good at a lower cost by avoiding branded manufacturers.
Higher raw materials cost may force an increase in clothing prices, in a recovering
BUS/475
August 1, 2013
Dr. Lenny Washington
Strategic Plan, Part II: SWOTT Analysis Kohl’s is a U.S. department store chain that sells a mix of items including men 's and women 's apparel, home decor, and accessories. The department store appeals to middle-class consumers by selling discounted branded and private label clothing and home goods. Kohl 's is in the same category of national department store competitors such as J.C. Penney and Macy 's Inc.
Kohl 's is vulnerable to a weak U.S. economy and declining consumer spending because the company has no stores outside of the US and does not have an international presence to serve as a buffer to fluctuations in the US economy. However, Kohl 's discounted pricing allows it to ride out tough economic times better than its competitors.
Economic Trends and Forces
Exclusive and private label merchandise account for almost half of Kohl 's sales, a figure Kohl 's has worked to increase by adding new exclusive brands like Helix, Mudd, Dana Buchman, and Hang Ten. Department stores are increasingly seeking to distinguish themselves and earn higher profit margins by offering exclusive brands and private label brands. Exclusive brands are brands marketed under the wholesaler 's name that are sold only in a particular chain; one exclusive brand at Kohl 's is the Chaps line by Polo Ralph Lauren. Private label brands are produced by wholesalers, but sold under the brand name of the retailer. Exclusive brands such as Simply Vera by fashion designer Vera Wang can help draw customers into Kohl 's stores, as the products can only be found at Kohl 's. Kohl 's own private label products are typically priced lower than branded merchandise, but have a higher profit margin for Kohl 's as the retailer is able to receive the good at a lower cost by avoiding branded manufacturers.
Higher raw materials cost may force an increase in clothing prices, in a recovering
References: http://www.researchandmarkets.com/reports/542126/kohls_corporation_swot_analysis.pdf http://www.alacrastore.com/storecontent/GlobalData_Company_Reports-Kohl_s_Corporation_KSS_Financial_and_Strategic_SWOT_Analysis_Review-2087-25265