Store Swot Analysis

SWOT

As a company started for only five years, 759 STORE has already competed with large local supermarkets and chain stores. It indicates that 759 STORE must have strong internal strength and external support to make it as successful as it was today. We will elaborate the detail in the following.

Strength and Weaknesses

759 STORE understands the significance of location of store would substantially affect the sales. It also notices the product consumers of snack and food are generally the public, so it chose to start up a number of stores that were near the residential areas to expand the potential market share. 759 STORE opened branches in every public house estate shopping malls in one specific district to attract highly potential customers. Take Tai Po as an example, Tai Po has 18 public housing estates in total, each of their shopping mall has at least one 759 STORE.

Maintaining a great or even irreplaceable relationship with suppliers, especially the Japanese and Korean suppliers, makes 759 STORE has set the internal competitive advantage for the company expand and further development. In 2010, a severe tsunami of radiation emission took place in Japan. Every country refused to take stocks from it since people are scared of the polluted food and rejected to have Japanese food. Two of the traditional and large-scale supermarkets in Hong Kong immediately stopped and refused to order any inventory from the Japanese suppliers as well since they scared the Hong Kong customers would not purchase them and make a loss. However, only the boss of 759 STORE was willing to make bulky orders from the Japanese suppliers, supported and maintained their business in difficult times. After the tsunami influence, Japanese suppliers have seen 759 STORE as irreplaceable business partner and refused to provide the same stock to the large traditional supermarkets in Hong Kong. As we can see, the relationship between 759 STORE and its suppliers has set the competitive advantage for it.

759 STORE aims to introduce a high quality of good living and Japanese consumption mode to all of the Hong Kong people. 759 used a strategy of “the lowest price but good quality” to attract many customers in the market and fight with others by price. In returns, 759 STORE has a high stock turnover rate and more current cash flows to offer a wide range of products to customers, ranging from snacks to cosmetics, restaurants to furniture stores, etc. It provides different kinds of products and more choices to customers at low price.

759 STORE expands quickly into diversified businesses in only few years. It can be counted as a strategy to prevent its aggressive competitors’ to besiege and block up its business plan and market share. Since the competition in snack market has totally saturated recently, 759 STORE has to think about another way to survive in the market. Therefore, it started to explore into different markets with its intimate suppliers’ support. For instance, 759 has opened a cosmetic shop under 759 named as” 759 Kawaiiland” and a grocery store named “SkyLand”, etc. It also started produce food and daily essential products under its own trademark.