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Zale Corporation (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Zale Corporation

Zale Corporation (Zale) is a specialty retailer of fine jewelry. Zale is headquartered in Irving, Texas and employed about 15,500 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Diverse brand portfolio
  • Large retail network in North America
  • Efficient merchandising and sourcing capabilities ensure product quality

Weaknesses

  • Poor financial performance in H1’2009
  • Concentration in North America

External

Opportunities

  • Strongly performing e-commerce business
  • Cost reduction initiatives

Threats

  • Economic recession in the US
  • Intense competition
  • Increased minimum wages
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