¶ … Mart is an American multinational retail and discount store chain having more than 1,100 stores across all the states of the country. Established in 2009, Max-Mart is one of the fastest growing retailers in the United States after Wal-Mart, Target Corporation, and K-Mart. In addition to the home country, Max-Mart also operates a number of independent retail and discount stores in Australia, United Kingdom, Japan, Thailand, and New Zealand. Other international locations of the company include Canada, Europe, and Mexico. Max-Mart is headquartered in Hoffman Estates, Illinois, United States. It has done a number of acquisitions and mergers during the last couple of decades. Max-Mart serves more than 3 million customers every day.
Max-Mart offers a wide array of consumer products and grocery items; including beauty and health care products, food items, toys, clothing, shoes, home and electronic appliances, bedding and furniture, books, medicines, magazines, jewelry, movies, music, games, sports and fitness equipments, pets, computer hardware and software, mobile phones, and all types of electronic and computer accessories and equipments. Max-Mart is known for its extensive product lines and excellent customer services at both physical and online stores. It has maintained an efficient order-booking, payment, returning policy, and customer services and queries management system which make it one of the most favorite and reliable brands in the retail industry.
SWOT Analysis for Max-Mart
SWOT Analysis consists of both internal and external environmental analysis (Hitt, Ireland, & Hoskisson, 2011). The internal environment is analyzed by looking at the company's strengths and weaknesses whereas external environment is assessed through potential threats and opportunities from the industry in which the company operates (Hill & Jones, 2012). A comprehensive SWOT Analysis for Max-Mart is explained in the following table:
A. Internal Environment
a. Strengths
b. Weaknesses
Worldwide Recognition:
The biggest strength of Max-Mart is its worldwide recognition. It has a strong brand image in the local and international market. This strong brand image largely contributes in enhancing the emotional and rational attachment of the target consumers towards this retail giant.
Variety of Products:
Max-Mart offers a large variety of consumer and grocery products at attractively discounted prices. Therefore, a large number of consumers prefer it over many other local and international brands.
Large Consumer Base:
The consumer base of Max-Mart is 3 million customers every day which is a proof that this retail giant has expanded its network to a large number of domestic and international locations.
Customer Services:
Moreover, Max-Mart provides superior customer services to its customers at both physical and online retail stores which largely contribute in strengthening the brand loyalty of its customers.
Supply Chain and Distribution:
An efficient supply chain and extensive distribution network enables it to serve its customers in all potential locations.
Financial and Operational Strength:
Due to its sound financial and operational position, Max-Mart does not face any difficulty in expanding its retail chain network or making relationships with financially stable suppliers and distributors.
Ownership Status:
A major weakness of Max-Mart is its ownership status of retails stores. Not all the retail and discount stores are fully owned by the company. Therefore, the Company's Management does not have full control and decision making authority in strategic steps.
Acceptability of Products:
Not all the products offered by Max-Mart have an equal level of acceptability among general customers. The Company offers branded products at discounted prices and grocery items at very affordable prices; but still it does not enjoy attractive sales revenues from all its product lines.
Expensive Product Lines:
Some branded products which cannot be sold on discounted prices have very low sales growth at Max-Mart. Consumers prefer to purchase these products directly from the manufacturers.
Employee Turnover:
The employee turnover and rate of absenteeism at Max-Mart in the home country is comparatively higher than that of its competitors. The major reason for this internal weakness is less competitive salary and compensation packages offered by Max-Mart to its lower level employees.
B. External Environment
a....
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