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Sample Essay on SWOT analysis of T.J Maxx

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Sample Essay on SWOT analysis of T.J Maxx

Company Brief: SWOT analysis of T.J Maxx

The TJ Maxx is a leading fashion and apparel store with departmental stores across the globe. The company operates through its four main divisions, which include The Marmaxx Group, HomeGoods, TJX Europe, and TJX Canada. It operates off-price stores with subsidiaries in the United States, Canada, India, Bermuda, Germany, Australia, Italy, and Poland. With its headquarters in Framingham, Massachusetts, TJ Maxx is the leading and largest store globally. Established in 1956, the company has over 154,000 employees across the world. In this SWOT analysis of T.J Maxx, you will learn more about the company’s strengths, weaknesses, opportunities and threats, which affect the operations of the company.

Strengths: SWOT Analysis of T.J Maxx

As a leading fashion chain in the world, T.J Maxx has several strong points, which keep it ahead of other players in the market. The first one is its stable financial growth. In recent years, TJ Maxx has recorded remarkable figures. In particular, in 2011, it had $1.9 billion in terms of revenue. In 2014 fiscal year the company recorded $27.4 billion, which represented 6% from 2013.

Another strong point is its dominance in the market. Besides its strong network in the US and several other countries, TJ Maxx is a strong brand in the world of fashion. As such, it has a hue following and clientele, who give it a competitive advantage over other players in the industry.

In addition, T.J Maxx flies high because of its commitment to delivering quality products to its customers. Because of this, the chain has loyal customers who drive its sales and ensure that they record high profit margins.

Weaknesses of TJ Maxx

As you are about to see in this SWOT Analysis of TJ Maxx, the company has several weak points, which limit its potential in the world of fashion. Here are the weaknesses. The first weakness is the firm’s overdependence on the US market. Today, most of the company’s business functions are within America. While this market has played a major role in strengthening TJ Maxx as a brand name, it risks crumbling in case of economic collapse.

Another weakness is poor customer care service in some stores. In recent years, there have been cases of dissatisfied customers because of poor customer service. This can have detrimental business effects. For example, irate customers may protest by buying products from its competitors. These complains further injure the image of TJ Maxx and may lead to huge profit loss. Lastly, customers find it contradictory that TJ Maxx stocks designer clothes in bulk.

Opportunities: SWOT Analysis of TJ Maxx

From this SWOT analysis of T.J Maxx, the company has numerous opportunities to explore and remain top in the market. For example, the chain should tap into the emerging economies, especially in Asia, and in particular China and India. Such vast markets can play a major role in enhancing the company’s growth and market share.

While TJ Maxx has a well define the line of fashion products, it can diversify and bring in products such interior design goods or electrical equipment to pull more customers.

Today, T.J Maxx allows customers to enjoy online shopping and get their products delivered without extra charges. The company should invest more resource in this system to increase its sales. It can achieve this through extensive use its site and social networking sites.

T.J Maxx Threats

Top of the list of TJ Maxx’s threats is stiff competition from other players in the industry. These competitors put pressure on the firm. They include Ross stores, Stage stores Inc, and Burlington coat factory.

Current changes in prices are also another threat. Today, more fashion chains are offering lower prices than TJ Maxx is. People will therefore soon go for more affordable products, which its competitors are offering.

The rising presence of counterfeit goods in the market also threatens the performance of TJ Maxx. This is a global problem, with a huge influx of imitations in the market. This lowers the sales of the company as more of its potential customers go for fake products in the market.

In this SWOT analysis of T.J Maxx, you have discovered how the internal and external business environment affects the company’s performance.

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