Sample Essay on SWOT Analysis of Kohl’s

SWOT Analysis of Kohl’s

Established in 1962, Kohl’s Corporation is an American company, which operates family-oriented department stores. Headquartered in Menomonee Falls, WI, the chain has over 1,160 stores in 49 states across the US. Most of these stores are in the Midwest and West, where the company has a strong presence with expansion plans to other markets. Kohl’s maintains consistency in its products, which largely depend on regional preferences. The company also offers online shopping, to compliment its in-store sales. This SWOT analysis of Kohl’s will focus on the company’s internal environment, detailing its strengths and weaknesses, together with the external environment, which will address its opportunities and threats.

Strengths: SWOT analysis of Kohl’s

Kohl’s offers a wide range of apparel, footwear and accessories for men, women and children. It also sells soft home products, like sheets and pillows, and house ware, targeting middle-income earners. The company has a number of strengths.

Firstly, Kohl’s has sufficient labor force to drive its business. With its over 1,100 stores scattered in the US, the company has 41,000 employees. This allows it to operate without experiencing shortage of work force.

Secondly, Kohl’s has good reputation and rankings in America and globally. For example, the company has a slot on the Standard & Poor’s 500. It is also ranked position 146 on Fortune list of 500 top companies.

Additionally, Kohl’s enjoys loyalty of customers. The company has a strong brand image, having been in existence for half a century. Thus, many Americans with the purchasing power recognize the brand.

Weaknesses of Kohl’s in doing business

Besides a strong foundation, SWOT analysis of Kohl’s shows that the company has a range of weaknesses, which affect its business expansion. For instance, the company lacks foreign customers. Over the years, Kohl’s has focused on solidifying its domestic market share. While this is good, its brand lacks recognition beyond the US states. In fact, Kohl’s does not offer international shipping, a clear indication that the firm does not put emphasis on the international market.

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Another weakness is limited stock in its in-stores.  Oftentimes, customers go online for shopping whenever its stock runs out. This may cause inconvenience as some customers enjoy making purchases from the stores where they interact with the staff freely.

Close to this is Kohl’s poor online presence. While many retailers, including its competitors are penetrating the online market aggressively, the firm appears content with the traditional business approaches.

Opportunities: SWOT analysis of Kohl’s

With over 50 years of business, a strong market base, and loyal customers, SWOT analysis of Kohl’s reveals that the firms still has untapped opportunities to expand and grow its operations. To start with, the company has an opportunity to expand its business to other countries. It is high time that Kohl’s tapped into the foreign market as a way of enhancing its customer base.

The company also has room to explore the online market. Even though it offers online shopping, it can make it more attractive to customers by having an interactive platform where customers make purchases with a unique experience.

The company should also consider having international shipping to allow delivery of products to customers regardless of their location in the world. To implement this, Kohl’s should introduce payment methods that allow one to buy products and make secure payment with ease, such us using PayPal or Bill Me Later.

Threats of Kohl’s

The sailing is not that smooth for Kohl’s even though it has been in the market since 1962. Its greatest threat is cutthroat competition from other giants in the Industry. Among these players, giving Kohl’s a run for its money are Dillard’s, Home Retail Group and Mercuries & Associate. Thus, the company must up its game to counter the impact of these players.

Another threat is the rising cost of goods and services. For Kohl’s to adjust to this, it must increase the price of its products, which in turn affects the sales as customers do not have a strong purchasing power.

The out-of-stock trend may cause the chain to lose customers as they seek products elsewhere. This SWOT analysis of Kohl’s shows how the firm is making use of its competitive advantage with its plans to expand into the international market.

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