Sample Essay on SWOT Analysis of Bed Bath & Beyond

SWOT Analysis of Bed Bath & Beyond

A SWOT analysis of Bed bath & beyond is a good source of information or insights for the top-level management of this company. Bed bath & beyond is a retail stores’ chain that sells merchandise assortments including home furnishings and domestic merchandise, giftware, food, beauty and healthcare items. It also sells toddler and infant merchandise. This company has operations in the United States and it is headquartered in Union, New Jersey. It has approximately 37,000 employees. SWOT analysis is a framework for which Albert Humphrey is accredited after he tested it in the 60s and 90s at Stanford Research Institute. This framework examines the strengths, weaknesses, opportunities and threats of an organization.

Comprehensive SWOT analysis of Bed bath & beyond


Some of the strengths of Bed bath & beyond include:

  • A skilled workforce
  • Experienced workforce or business units
  • Robust stores’ network
  • Diversified range of products
  • Continuous rise in the comparable sales from the stores
  • Effective communication
  • Growing base of loyal customers
  • Continuous online growth
  • Strong team of managers
  • A strong position financially
  • Excellent reputation management.
  • Strong brand name


Some of the weaknesses of this company include:

  • Competition from other retail stores such as Wal-Mart
  • Little investments in development and research
  • Decline in operating margins
  • Geographic concentration
  • Relatively weak growth of revenue
  • Very high cost per output unit or absence of scale.


Among the opportunities that Bed bath & beyond can exploit include:

  • Expanding its operations to other places such as Canada.
  • Acquiring other similar, small brands
  • Increasing its expenditure on online retail in the United States.
  • Exploiting new and emerging markets such as India and China.
  • Expanding internationally
  • Expanding its services and products

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Among the threats that Bed bath & beyond is facing include:

  • Low profitability and growing competition from other retailers such as Wal-Mart.
  • Increasing operational costs
  • Rising raw materials’ cost
  • Regulations by the government
  • Increasing interest rates
  • Economic slowdown

When is SWOT analysis of Bed bath & beyond important?

Bed bath & beyond SWOT analysis is important when its management gets into formulating strategies. This is because SWOT analysis identifies the strengths, weaknesses, opportunities and threats of this company. With this knowledge, the management of this company can know where to start and what strategies to formulate in order to expand it. SWOT analysis can also help the management in specifying the actions to take in order to deal with or to correspond with the identified elements.

If the management of Bed bath & beyond uses SWOT analysis during strategies formulation, it can improve the current company’s situation. It can also reduce the possibility that the implemented strategies for development will have a negative impact on business while enhancing performance.

Why is Bed bath & beyond SWOT analysis important

SWOT analysis of this company is important because it provides important data to the executive of this company. Without this information or data, the management cannot make effective decisions. For instance, information about the threats of this company is necessary for competitor and business intelligence needs. SWOT analysis indicates the external and internal factors that affect the company with a breakdown as well as examination of the internal factors that can influence its operations. It indicates the favorable factors, which are the strengths and opportunities of this company, and the unfavorable factors, which are its weaknesses and threats. Armed with this knowledge, the executive can make decisions and formulate strategies that will propel Bed bath & beyond forward.

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