Sephora SWOT Analysis.
Fashion in Technology
Professor Jennifer Lezan
Strengths:
· Current manufacturing, distribution and selling of beauty products.
· Already has a base of shoppers.
· Established operations already in place for their current products, including employees and brand ambassadors.
· Established within department stores.
· Company is always eager to expand and is always evolving with new products and locations
· New products heighten store's sales
Weaknesses:
· Competition is already established within industry, (MAC, ULTA)
· May have strict pricing due to high end brands.
· Sephora may be missing out on the customers because of high pricing
· Not enough marketing effort toward the male fanbase
Opportunities:
· With the eagerness to expand, Sephora has an opportunity to branch into a male focused branch of the brand.
· With consumers, already in place buying from existing products and the brand already having an industry presence, Sephora can market their new expansion to those users.
· Can take the knowledge and practice of selling some male products as a way of testing the market with new products
· Use positive feedback from test market results to establish the new male product line and customer segment.
· Brining in a new branch can give Sephora the opportunity to expand their customer by making it a focal point for shoppers by having a larger variety.
Threats:
· The biggest threat is cost! Adding a new product/branch within the company's line will be costly, especially if the return isn't positive.
· Pricing, competition may have better pricing so it's important for Sephora to research that important area.
· New product line and customer base could take away sales from the existing store/product.