SWOT analysis of Guess

Guess is one of the leading companies in the apparel industry. It is an American brand for both men and women. It was founded in the year 1981 by a couple of people. It is present in close to 450 places in the world.

Strengths in The SWOT analysis of Guess

This helps in understanding the core areas of the business where it beats the competition and has the competitive advantage in the market. Strengths are generally the core competency of the business.

1. Brand Portfolio – Guess has a very strong brand portfolio. The business has invested a lot in making its brand name and portfolio. This will not help in the expansion of the brand but at the same time, it will help the brand to expand across categories with a ready market because of its brand name.
2. Automation – Guess has brought automation in the manufacturing processes that have helped to bring consistency in the quality of the product and also the production can be managed on the basis of supply and demand.
3. Skilled Workforce – Guess has a highly skilled workforce as they have deployed rigorous training and skill development workshop for their employees which helps them to keep their employees motivated as they are the face of the company
4. Good ROI – Guess has been able to execute their projects with a great efficiency which helps them to achieve good returns on their investments.

Weakness in the SWOT analysis of Guess :

This is the pain area of the organization where it does not have the resources or skills. Business has to work upon these areas so that they are not left behind from the competition. Though there will be some or the other weakness it should not be an area which takes the business pout off the market

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1. Organization Structure – The current structure of the organization is only good for the business model that is being executed now and will create issues when the business model will be changed in future to expand in different product categories and segment
2. Financial Planning is Weak – The current planning and the balance sheet status suggests that the business is not able to use the funds properly.
3. Target Group – The company only focusses on the premium segment but the popularity of the brand is very high in all income groups and hence it is losing the market share to new entrants who have better-focused strategy.
4. Challenges on Expansion – The business has been facing challenges in order to expand to other categories despite many executions.

Opportunities in the SWOT analysis of Guess :

This helps in understanding what other things a business can do with the current skills and resources. It helps the business to know the areas where it can expand and take a lead in order to diversify the business and expand the customer base

1. Suppliers – Guess has a good lot of suppliers which help to get better raw material at good prices and also on the forward side of the value chain to distribute the products to the end customers. But in the world where economic conditions are not smooth, the relations need to be better with suppliers so that they can pass on the margins to the end customers to maintain a balanced sale.
2. Customer Satisfaction – Guess has a strong customer base and it is due to the fact that they deliver a good quality product but if there is any concern then they should address it with the motive to deliver the best possible solution so that customers are always happy.

Threats in the SWOT analysis of Guess :

This analysis helps in understanding what are the areas which can impact the business in future or right away. So business has to prepare itself to handle the threats in the market landscape. Competition or increasing number of players in the market with same value proposition is a threat to business as it directly lowers the customer base and revenue

1. Rising cost of raw material – The prices of raw material is increasing at a rapid pace and hence it poses a challenge for the business to keep their prices fixed which certainly deflects the customer and affects the profitability.
2. Competition – As the business operates in a global context and the industry is highly attractive for new entrants due to the profitability it offers thus the industry faces high competition which further takes away the market share from the local players.