Swot Analysis of 759store

SWOT Analysis of 759Store

Weakness

As you all know, the business strategy of 759STORE is lowest price and sell more and their inventory turnover rate is high. This mean they will not keep many inventories and the mobility of the inventories is high. So their weakness is the cost and unstable supply. Due to lowest price for the product, increase of cost will have a big influence for 759STORE compared with other company. Because 759STORE use sale on lowest price, supplier may stop to provide goods to 759STORE. The reason is supplier do not want the price of product become lower. Also, their inventory turnover rate is high so they do not have many inventories. This will easy cause stock out problem. If some of supplier stop to provide goods for them, It will have a big loss for 759STORE.

Opportunities

The demand for the products of 759STORE is increasing. There is a new social trend is that the young people are willing to spend more to buy some snacks and soft drinks.  As the products’ price of 759STORE is very low, it may boost the product demand to increase the net profits.

The reputation of 759STORE company is remarkable. As we know the competition of snack market in Hong Kong is fierce, then people now are seeking a store which is suitable for them and the well-known brand of the store.  Most of them will choose consuming in 759STORE because this company is famous in Hong Kong, specially for the teenagers.

The scale of 759STORE is big.  There are lots of store located in Hong Kong, Kowloon and New territories.  It’s convenience and swift for the customers to purchase goods around them.  It may enhance the profit rate of the company indirectly.

Strength

The target customer of 759 stores is the age between teenager and the mid-age person. First, direct delivery product line from the past Snacks and drinks based, expanded to include Grocery, liquor, frozen food, baby supplies, pet snacks, household products, personal care products and cosmetics. it can get the different options to the Hong Kong people. The 759 stores used direct delivery. Then prices set very low, and which can match their purpose “Small Profit, Quick Return’’. That can let the Hong Kong people have more chance to choose which is best. Secondly, 759 stores almost every week provide discount to the consumer, 10~30% off for the each product. Let the customer spend more money in this store. 759 stores can catch what consumers want to buy. For example, the cheese is the favorite for some people, it purchases some goods included the cheese, and get more profit in this products, the ‘’Kimchi Cheese Ramen’’ is the most favorites products in the 759stores. 759 have two hundred forty stores in Hong Kong. For the convenience of nearby residents, branch location near houses, mainly in the districts of public housing and private housing estates mall and shop.