Ulta Beauty Swot Analysis Essay
An analysis of ULTA Beauty’s internal environment demonstrated both strengths and weaknesses. Overall, the company has a strong customer base relating to its marketing strategy and brand reputation, providing a competitive advantage (Piaget, 2013).
Strengths
• S1 Brand Awareness: ULTA Beauty is known for its products and services. The company remains competitive in the industry through its product differentiation, expertise, and customer service.
• S2 Supply Chain Management: The concerted efforts of the company’s supply chain provide ideal remuneration of products in stores (Piaget, 2013). Consequently, suppliers trust the ability of management to pay on time.
• S3 Size and Cost Advantages: ULTA Beauty’s operations size allows it to obtain bulk goods at a lower price than competitors.
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The company strives to appeal to all consumers.
• S5 Customer Loyalty: ULTA Beauty increases and sustains its relationships with its active marketing efforts and ULTAmate Rewards Program. Fifteen million customers are enrolled and make up 80% of total net sales (Annual Report, 2015).
Weaknesses
• W1 Weak Management: ULTA Beauty is too large in size to the extent that it does not have an ideal management strategy. A large company is likely to suffer from mismanagement, as auditing of records requires time and resources (Panda, Panda, & Rout, 2014).
• W2 Expansion and Resources: Market volatility and rising interest rates make it difficult to continue expansion and open new retail stores.
• W3 Growth and Distribution Capacity: ULTA Beauty fails to adequately keep their stores stocked.
• W4 Confusing Products: ULTA Beauty may have too many products that confuse new customers who have to search through the many brands offered (Panda, Panda, & Rout, 2014).
• W5 Ownership Issues: ULTA Beauty’s Board consists of twenty directors. Decisions take longer than expected and leave many
Strengths
• S1 Brand Awareness: ULTA Beauty is known for its products and services. The company remains competitive in the industry through its product differentiation, expertise, and customer service.
• S2 Supply Chain Management: The concerted efforts of the company’s supply chain provide ideal remuneration of products in stores (Piaget, 2013). Consequently, suppliers trust the ability of management to pay on time.
• S3 Size and Cost Advantages: ULTA Beauty’s operations size allows it to obtain bulk goods at a lower price than competitors.
• …show more content…
The company strives to appeal to all consumers.
• S5 Customer Loyalty: ULTA Beauty increases and sustains its relationships with its active marketing efforts and ULTAmate Rewards Program. Fifteen million customers are enrolled and make up 80% of total net sales (Annual Report, 2015).
Weaknesses
• W1 Weak Management: ULTA Beauty is too large in size to the extent that it does not have an ideal management strategy. A large company is likely to suffer from mismanagement, as auditing of records requires time and resources (Panda, Panda, & Rout, 2014).
• W2 Expansion and Resources: Market volatility and rising interest rates make it difficult to continue expansion and open new retail stores.
• W3 Growth and Distribution Capacity: ULTA Beauty fails to adequately keep their stores stocked.
• W4 Confusing Products: ULTA Beauty may have too many products that confuse new customers who have to search through the many brands offered (Panda, Panda, & Rout, 2014).
• W5 Ownership Issues: ULTA Beauty’s Board consists of twenty directors. Decisions take longer than expected and leave many