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SWOT Analysis of Sears Canada

What you should consider when writing a SWOT Analysis of Sears Canada:

Sometime writing SWOT analysis assignments can be a daunting task. If you have found yourself in this situation, you can use this sample paper on SWOT Analysis of Sears Canada. Main points to consider are Strengths, Weaknesses, Opportunities, and Threats factors.

SWOT Analysis of Sears Canada: The Company brief

A SWOT analysis of Sears Canada makes determining the strengths, weaknesses, opportunities and threats of this company possible. Every company is influenced by internal forces and external forces. These forces comprise of the internal and external environment of a company and they can be analyzed or scanned by conducting a SWOT analysis. The internal forces are the strengths and weaknesses of a company while the external forces are its opportunities and threats. In simple terms, SWOT analysis can be defined as a framework or tool that can be used to identify and analyze the external and internal factors that can affect a person’s, place’s, product’s or project’s viability.

Concrete SWOT analysis of Sears Canada

Sears Canada is a large retailer store whose headquarters are in Toronto, Ontario. This firm was established in 1952 and it offers a wide range of shopping options to Canadian consumers with specialty as well as departmental stores. This company has operations in various territories and provinces within Canada.  It has 197 Hometown stores, 38 Home-improvement showrooms, 167 corporate stores and a nationwide home repair, installation and maintenance network.

The SWOT analysis of this company is as follows:

SWOT analysis of Sears Canada: Strengths

The strengths of Sears Canada include:

It holds a leading position in the retail stores market.

Its retail network is very strong.

Its brand has a balanced mix.

It offers a wide range of products.

High revenue and profitability

It has a strong managerial team.

It has a strong base of loyal customers

It has multicultural customers.

SWOT analysis of Sears Canada: Weaknesses

Among the weaknesses of this company are:

  • Low turnover for its inventory.
  • Weak sales of comparable stores.
  • Closing some of its stores because of low performance
  • Old look due to the failure by the company to change or rebrand over the years
  • Saturation of domestic markets by other retailers.

SWOT analysis of Sears Canada: Opportunities

Among the opportunities that Sears Canada can exploit included:

  • The increasing disposable income among its customers.
  • Growing products with private labels
  • Increasing its online ventures and sales
  • Decentralizing its operations.
  • Expanding to other offerings such as healthcare in the U.S.
  • Acquiring smaller retail stores or chains.
  • Tapping the potential of the international market more so in the emerging economies.
  • Enhancing focus on customer service.
  • Enhancing visibility via advertising.

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SWOT analysis of Sears Canada: Threats

Some of the threats that this company is facing include:

Increasing competition from other retailers such as Dillard’s, Home Retail Group and Mercuries & Associates.

Low confidence among consumers.

Difficulties in controlling operational costs.

Huge financial problems.

Changing economic situations

Importance of SWOT analysis of Sears Canada

SWOT analysis should be performed by the management of this company which includes the operational managers and marketing managers. By performing this analysis, the management can examine where the firm has the ability to compete effectively. The analysis will enable the management to discover the competitive strengths of the firm that may have not been utilized fully. Generally, SWOT analysis is very important because it gives insights into the potential and condition of Sears Canada. For instance, the management of this company may have performed a SWOT analysis when the firm recorded more than double loss about a year ago.

How to use Sears Canada’s SWOT analysis

The company can use SWOT analysis in formulating strategies for enhancing its performance. For instance, after knowing the strengths of the company, the management can ask questions like, how can the strengths be utilized to explore the identified opportunities better? How can the effects of the identified threats be avoided or minimized if they become real problems? How can the weaknesses of the company be eliminated or minimized? The real value and use of SWOT analysis lies in bringing the four aspects together in order to exploit the most beneficial or promising opportunities.

SWOT analysis of Sears Canada: References Used

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