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September 2020

SWOT Analysis of Macy's
Writing

Macy’s SWOT Analysis | SWOT Analysis of Macy’s

by Shamsul

 

Macy’s SWOT Analysis | SWOT Analysis of Macy’s

 

Through thick and thin, Macy’s is the leading US department store. With over 160 years of operation, you can learn a lot from Macy’s SWOT analysis. But it is necessary to understand Macy’s past and present to assess its strengths, weaknesses, opportunities, and threats. It’s headquarter is located in NY, United States. The current CEO is Jeffery Gennette.

 

Company: Macy’s, Inc.

Founder: Rowland Hussey Macy Sr.

Established: October 28, 1858

CEO: Jeffrey Gennette

Head office: NY, United States

Type: Public

Symbol: M

Present Employees (2020): 123,000

Annual Revenue (2019): American $25.3 Billion

Net income | Profit (2019): American $564 million

Products or Services: Clothing | Apparel | Footwear | Cosmetics | Accessories | Sportswear| Inner Wears | Home Furnishing | Consumer Goods | Miscellaneous Products

 

Surprising Fact: You will surprise to know that Macy’s First supervisor, Margaret Getchell was one of the first female executives in American retail history.

 

Here is the SWOT analysis of Macy’s

Macy’s SWOT Analysis | SWOT Analysis of Macy’s

Macy’s Strengths:

1- Huge Variety:

From clothes to accessories, fragrances, cosmetics, and home furnishings, Macy’s offer a huge variety of products for women, men, and kids. The company’s range includes Bluemercury and Macy’s Bloomingdale’s.

2- Excellent Customer Relationship Management:

Macy’s has a powerful customer relationship management (CRM). This strategy turn disappointed consumers into a satisfied customer if their complaints and queries are addressed fully. Macy’s is best known for its customer dealing services.

3- Precious Brand:

Macy’s customer-centric strategies proved beneficial for the company. This thing helps the brand to stable its name and reputation. It is ranked 120th by Fortune in the list of 500 companies.

4- Powerful e-Commerce Sales:

Due to lockdown, the trend of online shopping is very popular. Macy’s online strategies are very strong compare to other competitors. Due to this reason, Macy’s annual revenues increased.

5- Successful Marketing:

Most of the companies spend millions of dollars for marketing or advertising purposes. Macy’s has its Thanksgiving Day Parade that proved advantageous for the company. It covers both the cultural and marketing sectors of Macy’s.

6- Massive Investment in Automation:

Macy’s spend a lot of money to modify its automation services to streamline its actions. The flexibility, productivity, efficiency, and affordable cost presented by automation will Macy’s a benefit.

7- Family Name:

The synonym of Macy’s is the clothing retail portion the globe over. This household name presents huge benefits, especially in marketing.

 

Macy’s SWOT Analysis | SWOT Analysis of Macy’s

Macy’s Weaknesses:

1- Poor Administration:

In this kind of business, poor administration is the biggest weakness for any organization or company. Some decisions adopted by Macy’s have proved unconstructive for users. It is important for Macy’s to implement Polaris Plan in order to maintain its operations.

2- Small Existence:

Even though Macy works internationally but has a very small presence in some regions. The position is aggravated further due to the pandemic, which results to close Macy’s 125 outlets in the US.

3- Failed Expansion:

When a company decides to increase its expansion in other parts of the world but cancels at the last minute, it will corrode the trust of loyal consumers. Customers in the UAE are still waiting for the appearance of Macy’s but they pulled out of the Abu Dhabi extension.

4- Declining Quality of Service:

Due to the rapid expansion of stores across the US, the company spiraled out of hand and outlets became untidy and unattractive. This reason leads to a decline in the worth of customer service.

5- Emotional Cut off:

Due to the rapid change of technology and the emotional disconnect cause the biggest loss in the revenues. Because customers missing human employees and friendly warm faces.

6- Overreliance on the US Market:

Even though Macy’s has worldwide exposure but the company heavily depends on the US market. After the murder of Floyd, the company faces a lot of loot during the protests in New York City.

 

Macy’s SWOT Analysis | SWOT Analysis of Macy’s

Macy’s Opportunities:

1- Strengthen Overall Presence:

It is very vital to focus on the bigger international market because it offers various advantages and opportunities. Macy’s should revise its strategies and stores to strengthen its international presence.

2- Enlarge e-Commerce Sales:

Macy has obtained immense success due to the practice of e-Commerce. But there’s a lot of potential in this sector. Expanding in this sector allows Macy’s to earn more revenue and reputation.

3- Diversify Products:

The company already sells apparel, shoes, sportswear, cosmetics, and many more. But they need to focus on second-hand clothes or food industry to diversify their impact.

4- Pay Attention to Rising Markets:

Rising economies like Africa and Asia, Macy’s should focus on these areas to expand its reputation and profits. They can earn a lot of money and grow their business by paying attention to these emerging economies.

5- Develop through Acquisitions:

Macy’s should diversify their strategies and products. They should pair with other companies in the form of partnership and sponsorship. It is important to acquired Story to produce the latest ideas.

 

Macy’s SWOT Analysis | SWOT Analysis of Macy’s

Macy’s Threats:

1- Global Recession:

With the global tension or virus, every company or brand suffers a lot in the form of followers and profits. Macy’s is also planning to scale down the business which causes enormous loss in revenues.

2- Decreasing Retail Sector:

Due to the economic crisis, Macy’s also experience a loss of revenues for the last 4 years. If it continues, the business will definitely collapse before 2025.

3- Hard Competition:

In the existence of Nordstrom, JC Penney, TJ Maxx, Kohls, and so on, Macy’s market share is in danger. The hard competition between these heavyweights can break the impact of Macy’s.

4- Trade Pressure:

The businesses also face a huge decline due to unconstructive political policies, economic factors, and many more. These factors heavily affect the business for the past three years. Macy’s stocks were dropped by 50 % after these trading pressures.

5- Uncertain Periods:

According to economic experts, the second wave of the Coronavirus is completely drastic. Macy’s has previously lost $1.1 billion due to quarantine or lockdown.

 

 

Read More:

H&M SWOT Analysis | SWOT Analysis of H&M

SWOT Analysis of Apple | Apple SWOT Analysis 2020

Uber SWOT Analysis | The SWOT Analysis of Uber

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SWOT Analysis of Marriott
BusinessSWOT & PESTLE Writing

Marriott SWOT Analysis | SWOT Analysis of Marriott

by Shamsul

 

Marriott SWOT Analysis | SWOT Analysis of Marriott

 

Company Name: Marriott International Inc.

Founded by: Alice and J. Willard Marriott

CEO:  Arne M. Sorenson

Year established:  1927

Headquarter:  Bethesda, Maryland. USA

 Number of Employees (Dec. 2019):  1740,000

 Type: Public

 Ticker Symbol:   MAR

 Market Cap

 Annual Revenue (end 2019):  US$20.97 billion

 Profit (Net income) (end 2019): US$1.27 billion

 

Products & Services:  Le Meridien | Westin Hotels and Resorts | Sheraton Hotels and Resorts | Ritz-Carlton Hotel Company | Starwood | Aloft Hotels | Courtyard | Four points | Gaylord Hotels | Delta Hotels | Fairfield | Renaissance | Elegant Hotel | Group Residence Inn

 

Did you know?

The Marriott family started the business as a root beer beverage stand and later they extended into a restaurant that hotel and lastly grew to an international company with 100s of hotels chain and resorts across the globe.

 

Marriott SWOT Analysis | SWOT Analysis of Marriott

In order to establish an effective or successful business from start, a lot of hard work, courage, resilience, and useful strategies are required to make it popular globally. It’s a vision of every businessman but only a few people can do this. Marriott International Inc. is a big example for us.

If you want to start a business in the hospitality industry, you should learn from Marriott SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. With this analysis, you can effectively grow your business and its operations. Here is the SWOT analysis of Marriott:

 

Marriott SWOT Analysis | SWOT Analysis of Marriott

Marriott’s Strengths:

1- International Presence:

International presence and operations expand profits or revenues but also increase stability. Currently, Marriott operates in 127 countries and regions globally. If one profit from one portion decreases, Marriott can rely on another section.

2- Market Management:

As we know, Marriott is the leading hotel chain internationally with more than30 brands, 81 hotels, and $25.1 billion assets. It has 6500 properties providing over 1.2 million rooms. It enjoys the entire advantages of economics due to its leading name.

3- Outstanding Reputation:

Marriott is listed 44th for assortment, 100th just companies, 243rd world’s best employers, and 38th best employers for women. Recently, the Fortune ranked Marriott 151st in the list.

4- Strategic Joint Ventures:

In order to grow business, you need to merge different companies or sectors. Marriott recently merged with Alibaba.com and allow their millions of users to book openly without down payments.

5- Advantageous Acquisitions:

Marriott exploits its operations with many advantageous brands like Ritz Carlton, Starwood, Bulgari Hotel, and Gaylord. In this way, Marriott expands its portfolios and revenues.

6- Devoted Customers:

Most of Marriott’s customers can’t even think about to choose any other hotel for accommodation. This kind of loyal fan-base is the real success of the Marriott. This is only possible with professional services and loyalty programs.

7- Strict Decorum:

Marriott is best known for its handling regarding sensitive issues or problems. The company is not only taking care of cleanliness and etiquette but also very punctual in services and deliveries. This type of strict code of conduct guarantees the success of the business.

8- Extremely Modern:

Marriott always offers innovative technologies in the service. From Homes Venture to Wallet-free experience and Villas, Marriott uses innovation in all the sectors.

 

Marriott SWOT Analysis | SWOT Analysis of Marriott

Marriott’s Weaknesses:

1- Useless Data Security:

People don’t trust companies that fail to keep their data. In 2018, Marriott’s Starwood was hacked and almost 500 million people were disclosed, as well as names, addresses, mobile numbers, passport numbers, etc.

2- Poor Positioning:

The backbone of Marriott’s success is family-focused business from management to market. But this approach can be the biggest weakness of Marriott due to the future of young people.

3- Unconstructive Publicity:

Marriott experience a huge backlash in 2017 due to its pronouncement to save its hotel guests from St. Thomas following Hurricane Irma. This kind of negative publicity can damage the brand name and reputation.

4- Lawsuits:

Lawsuits can spoil the company name. Marriott was prosecuted for jamming consumers’ private Wi-Fi due to citing security concerns and was charged $600000.

5- Too Strict:

Etiquettes and strictness are necessary for success, but breathing down the employees can destroy the company’s productivity and efficiency. Marriott never compromises on the code of conduct. The company fired a worker on liking a tweet that insulted China.

 

Marriott SWOT Analysis | SWOT Analysis of Marriott

Marriott’s Opportunities:

1- Shifting Demographics:

The company should revise its family-centered policy and grow its fan-base by showing as a youthful brand. They need to change their habitual services and endorse modification and innovation in hospitality.

2- Focus on Rising Markets:

It’s a massive opportunity for Marriott to establish more hotels and chains in emerging economies. The trend is increasing in rising economies so it’s a big chance to promote their services.

3- Diversify Offerings:

In order to expand the business, you need to understand the basic needs of customers. Customize their services according to the customer’s demand. Marriott should think out of the proportion to get huge fan-following and profits.

4- Develop into Concerned Sectors:

Marriott should focus on linked projects like tourism, catering, real estate, and many more. They should think about to provide houses for hire such as Airbnb. These opportunities will make Marriott as a famous international brand.

 

Marriott SWOT Analysis | SWOT Analysis of Marriott

Marriott’s Threats:

1- Global Pandemic:

Marriott experience a huge loss of 92 % due to the novel Coronavirus. If the lockdown remains for another 5 to 6 months then Marriott will suffer a lot. This loss is very huge and breaks the backbone of Marriott.

2- Hard Competition:

There’s a huge competition in the hospitality industry due to the presence of Hilton, Novotel, and many more. They can reduce the sales and profits of Marriott if they get a huge response.

3- Alarming Recession:

Most of the companies are downsizing due to the outbreak of COVID-19. This drastic effect can damage the company’s name and profits and can be destructive for them.

4- Trade Tension:

Famous companies like Marriott are badly affected due to flying operations. Tourism is completely banned and the government is focusing on bigger companies to increase tariffs. This thing will also break the revenue system.

5- Danger of Terror Attacks:

Marriott is dependent on its fame and five-star accommodation facilities. These things will attract customers from different countries. But there’s a risk of terror attacks because terrorists always target five-star hotels with a huge number of foreigners.

 

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SWOT Analysis of H&M,
Writing

H&M SWOT Analysis | SWOT Analysis of H&M

by Shamsul

20th Sep. 2020

H&M SWOT Analysis | SWOT Analysis of H&M

 

 

Company: H&M – Hennes & Mauritz AB

Founder: Erling Persson, October 4th, 1947

CEO: Helena Helmersson

Head office: Stockholm, Sweden

Type: Public

Present Employees (2020): 177,000

Annual Revenue (2019): US$24.8 Billion

Net income | Profit (2019): $1.5 billion

Products or Services: Outfits | Clothing | Underclothing | Footwear | Makeup Cosmetics | Accessories | Sportswear| Home Textiles

 

 

H&M (Hennes & Mauritz AB) is the 2nd famous fashion retailer across the world. It is a Swedish Company and its quick fashion strategy is the biggest advantage for its success. It’s headquarter is located in Stockholm, Sweden. The company started working with a single store and now it is working in 6 continents with thousands of stores and retailers. It’s a big inspiration for small fashion retailers and stores. Today, we will talk about H&M SWOT Analysis | SWOT Analysis of H&M, the strengths, weaknesses, opportunities, and threats of H&M.

 

H&M SWOT Analysis | SWOT Analysis of H&M 

H&M’s Strengths:

1- Successful Merchandising Policy:

It is a fact that the fashion retail business basically relies on successful selling policies. The main reason for the success of H&M is the fast fashion model. It offers the latest designer products and items. It takes only 2 weeks to deliver products from the designer table to the retail area.

2- Worldwide Presence:

Today, H&M has 5076 stores across the world in 74 famous markets. From Europe to Africa, North America, Asia, Australia, and Latin America, the H&M offers quality fashion products and improve stability.

3- Competitive Pricing:

H&M is best known for its quality fashion products at a cheaper price. Sometimes the price varies according to the type of product. The flexibility and cost-effectiveness model is the real reason behind the success.

4- An Array of Products:

H&M offers a variety of products that attract consumer’s attention easily. From clothing to shoes, cosmetics, and many more, H&M’s exceptional brands such as Cheap Monday, H&M Home, and Arket provide an array of products.

5- Precious Brand:

To run a successful brand, it is necessary to adopt a customer-centric model. From its beginning, H&M uses this model and become a valuable brand. H&M was categorized as the 58th world’s most valuable brand in 2019.

6- Powerful Online Channels:

Most of the companies are using the internet for selling and purchasing in this modern age. H&M has a powerful online presence around the globe and the biggest source of income.

7- Competent Supply Chain:

The popular companies require a competent supply chain to keep in touch with contractors and suppliers. H&M has its biggest NextGen supply chain which is extremely helpful.

8- Community-Centered Approach:

It is really significant to understand the community’s need to create a sustainable business. The company stopped its operations in the US in support of campaigners. H&M also focused on aiding communities distressed by deadly diseases in Bangladesh.

 

H&M SWOT Analysis | SWOT Analysis of H&M

H&M’s Weaknesses:

 

1- Overconfidence on Outsourcing:

H&M manufactures some products in-house; otherwise, it outsources most of its manufacturing from over 900 self-sufficient contractors. However, this strategy contributed to its achievement, but it sets the brand at the mercy of the dealers.

2- Controversial Products:

H&M faces a massive backlash and people boycotted its products for encouraging racism in 2018. H&M hired a black child model to promote its hoodie containing the expression ‘’coolest monkey in the jungle’’.

3- Boring Fashion:

As we said that, H&M majorly relies on independent suppliers. That’s why they don’t have the latest fashion designs and models. This weakness gives a chance to other competitors to show new trends.

 

H&M SWOT Analysis | SWOT Analysis of H&M

H&M’s Opportunities:

1- Diversified Products:

Many fashion companies and retailers offer a variety of options to earn more profit and stability. H&M also focus and improve its variety of options by giving sports apparel. This massive opportunity will help H&M to increase its options and reputation.

2- Utilize E-commerce Completely:

H&M should learn from Zara how to exploit online channels. As more people purchase online, this thing will be a game-changer for H&M to expand its online sales. This is the best and easy way to increase brand name and profit.

3- Pay Attention to Rising Markets:

It is a big opportunity for H&M to develop more brand recognition in Africa and Asia. These rising markets have the potential to establish the brand efficiently.

4- Develop Through Acquisition and Unions:

To enter the narrow or difficult market, the best way is to join with other companies and acquisitions. H&M can increase its market value by merging with secondhand marketers through acquisition.

 

H&M SWOT Analysis | SWOT Analysis of H&M

H&M’s Threats:

1- Imminent Recession:

Though, apparel, footwear, undergarments are essential everyday items. But due to the recent recession in Europe and other regions of the globe, fashion traders such as H&M will face a massive decline in profits and sales.

2- Hard Competition:

There’s a big competition among H&M, Zara, Gap, Boohoo, Macy’s, and many more. They all trying to increase their market share and minimize the demand for H&M’s products.

3- Expand in Counterfeits:

Honestly speaking, there are hundreds of fake brands in the market. But their expanding demand and increasing value can break the image of designer brands like H&M.

4- Growing Operation Costs:

Internationally, earnings for sellers are declining regularly due to an increase in the price of material and laborers. This kind of thing will threaten the operation and creation of H&M.

5- Trade Tax:

H&M outsources most of its products from different regions of the world which leads to a huge amount of tariffs. It also experiences a huge loss due to the Brexit deal.

6- Global Pandemic:

The success of H&M is totally relying on a nonstop stream of material and products. But due to lockdown and quarantine has reduced this flow which tends to interrupt the flow of profits and sales.

 

Read More:

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YouTube
Better TipsMarketingTop 10Writing

YouTube Platform Information Everyone Should Know in 2020

by Shamsul

 

YouTube platform Information Everyone Should Know in 2020

 

URL: https://www.youtube.com

 Established on: February 2005 in San Bruno, CA

Started by: 3 former PayPal employees: 1- Steve Chen, 2- Chad Hurley, and 3- Jawed Karim

 CEO: Susan Wojcicki

 Employees: 2000+

Active Monthly YouTube Users: 2 billion

Active Monthly YouTube Users: 30 million

YouTube TV Paid Subscribers: 300,000

Videos Shared to Date: 5+ billion

Users Content Shared to Date: 50 million+

Average YouTube Viewing Session: 40 minutes, continuously up 50% year-over-year

YouTube Videos Watched daily: 5 billion (source)

Mobile users are on the increase and present views per day: 1 billion+

 

 

YouTube platform is the safest video platform in the world. The fame of YouTube is because of its ease. It is so easy to create content and share with a great number of viewers on YouTube. There are a lot of options to choose content from YouTube. You can easily find makeup videos, product analysis, and the videos you want to watch on YouTube. From millions of channels on YouTube, you can find the videos you are interested in. we can say that YouTube has everything for everyone.

On April 23rd, 2005, the first video uploaded on the YouTube platform. The title of the video was “Me at the zoo”. It goes from zero to one billion spectators in the last 10 years. YouTube platform isn’t just for games. This platform helps you raise your commerce industry in 2020.

 

YouTube Numerical and Facts as on 19th Sep 2020

 

First YouTube video on 23rd April 2005

Users of YouTube as on 19th Sept. 2020

500 hours of videos uploaded on YouTube every minute!

5 billion YouTube videos are viewed on each single day

30 million people visit per day

Currently, 261 YouTube videos have 1 Billion+ Views.

Views on mobile per day are over 1,000,000,000

The avg. mobile viewership session persists above 40 minutes. However, it continuously up over the years.

Male users stand 60% and females are 38%.

YouTube navigation is available in 76 different languages that are capturing 95% of the current Internet population.

Local versions of YouTube are available in more than 88 countries.

Around 9% of U.S small businesses use YouTube Channel.

An interesting fact is that approximately 20% of the visitors who start to see the video will leave after the first 10 seconds. So, it is important that you create an attractive intro.

 

YouTube Platform by the Numbers

Approximately YouTube has two billion users globally. It is the most well-liked public networking website as of April 2019. Facebook is the only public networking site that has additional monthly active users than YouTube.

These two billion users are people who sign in to the website at least formerly in a month. There are a large number of people who don’t have any Google account are using YouTube for watching videos. This can be a vast impact on investors in 2020. It is sure that it is a big stage for your digital advertising efforts as a large segment of YouTube users watch the public network every day.

 

 2nd Most Famous Social Media Website

In the world, 79% of people say they contain a YouTube account. These statistics will definitely catch your interest.

YouTube was established in 2005 by three ex-workers of PayPal. The growth of YouTube has developed over time. Google purchased YouTube in 2006 for 1.65 billion dollars, and now YouTube works as one of Google’s subsidiary. YouTube offers a quick and simple way to users and the capability to share videos regularly. YouTube is a constantly rising social media stand, but there are a lot of reasons that have contributed to its achievement. Due to its accessibility, the YouTube platform manages to seize its leading place in the world. It is so easy to share your content with a great number of viewers. The main characteristic of YouTube is its simplicity which attracts a large number of content makers globally.

 

YouTube Platform Stats

YouTube is a large video sharing platform and very admired among marketers. Nearly 8 out of 10 marketers think about it to be the most useful platform for video advertising. 58.5% of marketers believe that Facebook is the king of socializing and video marketing platform.

In another perspective, YouTube obtains more consideration from the audience than television.  Marketers are running ads on YouTube and spend more than one part of the expenses on video ads. Most of the marketers are scheduling on growing their video marketing finance for YouTube video ads.

These signs are pointing to rising expenses on the YouTube platform. In 2020, the net marketing revenues of 4.34 billion are estimated. This further extends to 5.21 billion in 2021 and break the 6 billion mark in 2022.

 

YouTube Handling by Age Group

90% of US internet users aged 18 to 44 years visit YouTube. The most used social website in the USA and UK is YouTube. This statistic shows the liking of video content between new types. Even aged people over the age of 75 are using the internet are also viewing videos on YouTube.

This generation can assist marketers to recognize if their aim market is there on YouTube or not. YouTube ads might be a great tool for the social media industry.

 

Videos For Everyone

You can watch videos on YouTube on a daily basis. In the estimate, daily people stream one billion hours of videos and create billion of views. If every person watches at least 8.4 minutes of video daily on YouTube, that’s an amazing number. People watch videos to study something and rely on video content. This shows how YouTube growing 70% every year.

There are many ways to create content and upload it on YouTube. For this, you need to form a YouTube channel where you can upload your content with your viewers. For example, if you are sharing online product videos on the YouTube platform, you can still insert a link to your YouTube account on your online store. Make sure that when you are uploading something, your audience is vigorous and more probable to watch your videos.

 

Earning with YouTube

Almost 62% of businesses exercise YouTube as a channel to share video content. The demand for video content becomes increasing regularly. YouTube is the next mainly well-liked channel for businesses, with Facebook securing the first number.

YouTube is an important tool for businesses as it gets a lot of fame as an individual platform for watching videos. You can talk with your accessible clients and use it to enlarge your marketing pains.

Sharing videos on the YouTube platform is so easy. You can easily share the news with your viewers or develop your product visibility. Anyone can be in touch with their viewers and get a response from them using YouTube channels. You can do it with the YouTube comments section.

Making videos for undersized businesses will be difficult, but there are several reserve video sites and software that are free of charge. You can create videos with your Smartphone. They are able of shooting suitably high-class videos that specialized cameras are no more required.

 

People use Mobile for Watching Videos on YouTube Platform

Nowadays people spend more time on mobiles. Almost 70% of YouTube watch time comes as of Smartphone devices. That is why mobile is preferred over the desktop. You can’t disregard the perspective of mobile for business. Mobile devices are much quicker than desktop. People easily watch videos on their mobiles. You can easily up to date your content for your viewers. You just need to keep an eye on YouTube platform stats to update your content. YouTube content is specified for mobile by default, the main thing to appreciate is how you can progress the mobile skill for your viewers.

 

Find out Latest Products

Video content is an influential marketing strategy. According to research, 90% of people declare they see the latest products on YouTube. Viewers depend on video content to find out something new. This type of information is really important for marketers.

You can make popular your product on YouTube. You can create a video of any product by showing its profit. As video content becoming rising on daily basis, the key to consider is originality. The more artistic you are, the higher the probability that you will get the maximum audience.  Your video should have the ability to allow people to take action. You can share your ideas regarding your product and answering viewers and their concerns.

 

500 Hours of Video Uploaded to YouTube every minute Globally

According to research, 720,000 hours of video uploaded to YouTube daily. Every hour 30,000 hours of video uploaded. On average, to watch the number of videos shared on YouTube platform per hour. You need 84 years to view one hour of uploaded videos on YouTube. It’s quite difficult to watch all the videos on the YouTube platform.

This shows that the reputation of YouTube increasing globally and every video on YouTube give a huge watch time. With this fact, you can’t ignore YouTube for business. You can get benefit from this information by raising a society and communicate with their consumers. This gives a great platform to show your product.

 

Well-Liked Channel Between US Digital Video Audiences

In America, the use of digital content is very high. YouTube platform is the biggest digital channel among any other digital audience. In comparison with Facebook, 60% of US digital viewers use Facebook. Instagram is at 35% and Twitter at 21%.

The most famous news media for digital video use, CNN, is viewed by 17% of US viewers. YouTube is the best opportunity for digital video activity. People love to watch videos on the YouTube platform and share it with their friends. Marketers can’t ignore this fact and improve their products for businesses.

 

Conclusion

YouTube platform has a lot of potentials to entertain people through their content. Every marketer should be conscious of the importance of digital video platforms. These 10 statistics have helped marketers to invest in the YouTube platform and you know how to make sure you are building use of their assets cleverly.

 

Read More:

Valuable Tips for Digital Marketing in 2020

How to Create a Brand That Would Last For a Very Long Time

Ways to Protect Your Privacy on Social Media Channels

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Apple-SWOT-Analysis-2020
BusinessSWOT & PESTLE Writing

SWOT Analysis of Apple | Apple SWOT Analysis 2020

by Shamsul

 

SWOT Analysis of Apple | Apple SWOT Analysis 2020

 

 Apple Inc. is an American tech company established by Steve Jobs, Ronald Wayne, and Steve Wozniak in April 1976. The headquarter is in Cupertino, California. The company is incorporated in 1977 and it was one of the earliest manufacturers of computing devices for personal use. Later, they have developed a range of software, networking solution, mobile devices, and lots of other accessories and services.

Apple is best known for its pioneering products and innovative software services. It is one of the most successful companies in the world.

iPhone is one of the most successful products of Apple. The overall income of Apple is $260 Billion. But in 2019, the iPhone sale is $142 Billion which is almost 54 % of the total revenue.

The current CEO of Apple company is Tim Cook.

For further details on how to do a SWOT analysis please refer to our article. Keep reading the articles for an elaborated SWOT view.

 

Company Name: Apple Inc.

Year Established: 1976

Founded by: Steve Jobs, Ronald Wayne, and Steve Wozniak

CEO: Tim Cook

Head office: Cupertino, California, USA

Type: Public

Employees: (Feb.2019): 137,000

Ticker Symbol:  AAPL

Market Cap (Aug 2020): US$2.135 Trillion

Annual Revenue (2019): $ US260.17 Billion

Net income | Profit (2019): US$ 55.25 Billion

 

Products & Services:    Computers | Software | Phones | Watches | Tablets | Cloud Technology | Accessories | Music Platform |

Competitors: Microsoft | Lenovo | Google | Samsung | Toshiba | Dell | Sony | HP | Acer |Netflix | Disney | Amazon | Chase | CitiBank | Youtube

 

Did you know?

In 2013, one of the original Apple computers was sold for more than $671,400 at German auction.

 

Apple Company Background

The Apple Business Overview Based on the Company’s Financial Report:

Apple is a cellular company that designs and manufactures media devices, personal computers, cell phones, software, accessories, networking solutions, and applications.

The company profile includes iPhone®, iPad®, Mac®, Apple Watch®, and Apple TV. Apple is known for its professional applications and operating systems. These applications are iOS, macOS®, watchOS®, and TV OS™, iCloud®, and Apple Pay®

Apple is offering digital content through its applications like the iTunes Store®, App Store®, Mac App Store, TV App Store, iBook’s Store™, and Apple Music®.

 

Apple products can be purchased through retail, online and direct stores. Its accessories are also readily available through third-party networks, retailers, wholesalers, and distributors. Other than this, it is also known for providing third-party compatible products. These articles include software, applications, and accessories. All Apple accessories are accessible through registered online stores and retail shops.

Apple is committed to providing intelligent components including hardware, software along with the services. As an iconic company, we are providing the ultimate user experience with its innovative business models. With precise strategy, we are more focused on designing and developing operating systems. Apple is offering originality in hardware and application software. One of the finest qualities of our enterprise is that it is offering flawless integration with the ease of use to valued customers.

SWOT Analysis of Apple

Apple makes huge investments in the marketing domain. As the largest cellular giant, the company understands the importance of user- company interactions. As an enterprise with a skillset, we have managed to gather the attention of users by conveying a true picture of the company products. The marketing portfolio has been greatly influenced by retaining strategies.

To enhance user support and after-sales services, Apple is now considering to make more investment in building online retail network stores. More customers can be reached with third-party- distribution platforms that effectively increase the number of users.

The company is well aware of the fact that investments should be made in the research and development domain, as it is crucial for the latest technological advancement.

 

SWOT Analysis of Apple:

Here we discuss strengths, weaknesses, opportunities, and threats of Apple in detail and analyze these factors.

Apple’s Strengths:

 All Apple products are designed to complement each other uniquely and innovatively. For the same reason, the company has successfully managed to indulge its users into the Apple ecosystem. Other available competitors do not offer any kind of sinking features. To make all products integrated on the same platform, the ecosystem is a unique opportunity.

 

Apple’s ecosystem is an incredibly designed platform that provides a seamless experience of integration to its users. It is a wonderful application that has managed to design a wide variety of integrated platforms for hardware, software, applications, and services.

 

Various competitors in the market tried to replicate the ecosystem designed by Apple. They all failed to achieve the targets because of the workflow design adopted by the developers. Apple has successfully gained popularity among the masses because of its intelligent interface. In the market, competitors failed to give the required capabilities in design, manufacturing, software, hardware, and applications.

 

Right now, Apple’s greatest competitor Samsung Electronics is way behind. It is because of the fact that Samsung has failed to come up with a practical all-in-one platform. There is a limited number of practical applications and services offered to users. On the other hand, Google that is considered to be the second-largest competitor also lacks in developing hardware with productivity and functionality.

 

Google and Samsung Electronics are two companies that tried to compete with Apple. No one else in the market has even bothered to contest Apple’s competitive advantage.

 

Powerful Brand Supported By Strong Marketing Techniques

Apple is one of the most frequently used popular brands. The value of this product is due to its thoughtful and ambitious design. Apple is keenly followed all over the world because it offers a groundbreaking, technology-driven products to its customers. Apple has always demonstrated a thoughtful design that is supported by its inventive ecosystem.

Other than aesthetic designs, Apple has always come up with the ideas that are beyond expectations. All the products are developed with professionalism that reflects the intrinsic power of technology, uniqueness, and high tech performance.

As a company, Apple has offered targeted features that are capable of giving practical experience to the users. For the same reason, the enterprise has gained a huge market share with up-to-date marketing policies.

In terms of promotions, Apple has been always up-to-the-mark. Over the years, incorporation has developed better advertisement policies. As a result, the enterprise has gained a high number of satisfied customers. With premium quality products and accessories, Apple is now known as a tech giant.

 

SWOT Analysis of Apple | Apple SWOT Analysis 2020

Now, we elaborate strength further

 

  1. Most Precious Brand:

The brand value of Apple is $234 Billion and ranked number 1 for the 7th successive year by Interbrand.

  1. Internationally Iconic:

No doubt Apple is one of the most successful and reliable companies in the world right now. The first name comes in our mind when we discuss personalized advanced computers and smart devices that is Apple. There are millions of loyal consumers of Apple and increasing day by day.

  1. Best Technology:

It is a fact that Apple was the first company to launch ground-breaking products and revolutionize the world with some of the best products such as iPhones and iPads. Apple determined to make and craft top quality products and devices.

  1. Brand of Option:

Apple is one of the most demanding brands in corporate offices. The reason behind this popularity is a specific Apple business page that provides solutions for every business’s needs.

  1. Skillful Research:

The designs of Apple’s products are ultimate in texture. They perform advanced research in order to help know consumer needs and necessities.

  1. Durability made Feasible through Liam:

What is Liam? It is an iPhone recycling robot that breaks down and helps to dismember an iPhone. The best thing about the iPhone is it’s parts recycling . The main purpose of Liam is to yield reusable parts as probable. These parts are usable in the manufacturing of new products.

  1. Development in Services:

According to research, 16 % of Apple’s revenue generated from its services. This is the 2nd leading source of revenue after the iPhone. That’s why Apple is more focusing on its services and brings the best for its customers. These services include streaming services, digital content stores, iCloud, AppleCare, etc. In 2019, Apple has launched some new services like Apple TV+, Apple news+, Apple Card (credit and service), and Apple Arcade (game subscription).

 

SWOT Analysis of Apple | Apple SWOT Analysis 2020

Apple’s Weaknesses:

  1. Costly Products:

Apple’s products are too pricey due to their premium quality. Apple’s products are only affordable for middle and high-income customers. Low-income customers can’t afford the products. That’s why we can say that these products are only for high-end consumers.

  1. Limited Advertisement:

The main reason for the limited advertisement is that Apple relies on its true customers. But with the limited promotion and advertisement, Apple maintains its revenue due to its brand quality and flagship retail stores. That’s why Apple does not spend extra time and money on advertisements in contrast with other brands such as Samsung, P&G, and Coca Cola.

  1. Entering into Vicinity of Non-competency:

Apple has launched some better services such as video content streaming, credit card, and game streaming. These services can compete with popular services such as Disney, Netflix, Paypal, Citi, Chase, etc. But don’t forget the failure of Apple maps.

  1. Inappropriateness With Other Software:

When you purchase an Apple device, you will completely enter in the Apple universe. This is due to the incompatibility with other software or apps because Apple software does not support any other technology. You can only use or buy Apple apps or accessories.

  1. Accusations of Tracking:

Tracking consumers is not a good thing at all. Apple has been blamed for tracking users through apps on their phones. So, they can know the exact location of consumers. But in the new version of Apple’s phones, you can decline the tracking feature.

  1. Unreasonable Business Practices:

Apple once makes Google’s search engine as the default search engine for its Safari web browser. This kind of unfair business practices causes complicity between the two heavyweights.

SWOT Analysis of Apple | Apple SWOT Analysis 2020

Apple’s Opportunities:

  1. Steady Customer Growth:

Honestly speaking, Apple has been ruling the world due to its exceptional products and innovation for years now. They offer high quality and ground-breaking technologies to enhance customer’s trust. They have a 92 % retention rate that is unbelievable. However, the proper use of  internet helped Apple to get new consumers and alliances.

  1. Competent Experts:

Apple has a huge team of qualified developers, researchers, and product specialists that is experienced in branding customer products. With the help of these competent professionals, Apple regularly builds new opportunities and services.

  1. Extensive Distribution System:

Apple can make higher revenue if paying attention to making an expansive distribution network. They need to be more focused on unlimited advertisement and promotion in order to generate higher revenue. They have the capability to increase its distribution network.

  1. Lack of Green Technology:

Apple need to introduce products using green technology. This kind of sustainable technology that is nature-friendly. But creating this type of technology will expand the sales if it focused on green technology.

  1. Smart Wearable Technology:

The future of wearable technology has a lot of potentials and can change the world. According to research, the sales of smart wearable technology will double by the start of 2022. It will turn out to be a $27 Billion+ market in 2022. The company has the Apple Watch and AirPods but this sector requires more innovation.

  1. Develop Artificial Intelligence:

By extending artificial intelligence, Apple can increase its revenue and profit margins. Recently, Apple has extended its Al portfolio. In 2017, Apple gained Regained, a French Al startup, and DeskConnect, and Al tool. It’s time to focus on extending its Al portfolio to have a powerful impact on the prospect.

  1. Enlarge Music Streaming Services:

The wide use of Apple products and the exceptional growth of consumers provide massive opportunities. Apple is still mapping to increase its music streaming services to 52 rising markets in the Middle East and Africa.

  1. Distribute Self-Driving Software Technology:

The demand for self-governing is growing speedily. Apple has the proficiency required to transport self-driving car technology slightly than fully-functional autonomous or electric cars. Apple just needs to focus on delivering self-driving software technology as a substitute for building a real car such as Tesla does.

 

SWOT Analysis of Apple | Apple SWOT Analysis 2020

Apple’s Threats:

  1. Corona-virus Epidemic:

Everyone affected by this novel corona-virus. China is a big market for Apple in terms of its manufacturing and supply chain. Almost 17 % revenue of Apple are generating from china because it’s a big market. Due to this epidemic, the supply chain affected badly and can cause to disturb about 32 % of Apple’s annual revenue in the financial year 2019.

  1. Supply Chain Disturbance:

The latest happenings have drastically affected and interrupted its operations. This can cause a huge decrement in annual revenue because of supply chain reservations.

  1. Apple Terrorized by Counterfeits:

Some dealers or sellers sell Apple counterfeit products at the original price in the third world countries. They sell clones or fake Apple products and this can cause damage the Apple name and brand value. Apple just needs to combat this kind of bullies.

  1. Rising Competition:

Well, Apple as a brand succeeded to make a solid image in the market, but it still faces competition and threats from competitors. Like Samsung, Dell, and Microsoft are giving tough competition to Apple. To fight against these rivalries, Apple should improve their technology and change its pricing strategy.

  1. Market Penetration:

As we know, Samsung, Lenovo, and HTC are using Android software to produce the latest smartphones. At present, Android is holding 72.23 % of the market share while Apple has only grabbed 24.55 % of the market share worldwide.

  1. China Tariffs:

Recently, the US government has obliged a higher tariff on imports from China, which can cause an increase in the cost of the product. As a result, it badly influences the gross margin on the products and the product becomes more expensive.

  1. Lawsuits:

At present, Apple has faces 60 class-action lawsuits. Customers offended and bewildered when Apple declared that it intentionally throttles CPU working on iPhone models with older and tainted batteries. The customers felt unsatisfied with the happening and filed lawsuits against the Apple Company. The first lawsuit filed on Dec 21st, 2017.

  1. Backdoor Mechanism:

Apple has been stressed by government agencies to unlock the iPhone utilizing a backdoor, which means giving access to its private data. But Apple has clearly denied providing the backdoor mechanism because it can put the security of millions of iPhone users at risk.

  1. Mark Zuckerberg Condemned the Domination of iPhone’s App Store:

The founder of Facebook Mark Zuckerberg criticized Apple for its monopoly on App Store and robust charges. He further added, ‘’iPhone App Store block innovation and competition’’. Apple charges a 30 % cut in-app purchases which can’t be affordable for small businesses and app developers. That’s why Apple faces a huge backlash due to this monopoly.

 

SWOT Analysis of Apple | Apple SWOT Analysis 2020

Final Thoughts:

Through this SWOT analysis of Apple, you can learn everything in detail. This SWOT analysis is perfect for study purposes. We covered almost everything and examine Apple’s strengths, weaknesses, opportunities, and threats.

Read More:

Uber SWOT Analysis | The SWOT Analysis of Uber

PESTLE ANALYSIS and Its Impacts in Marketing

SWOT of Amazon | Amazon SWOT Analysis

 

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SWOT Analysis of Starbucks
BusinessSWOT & PESTLE Writing

Starbucks SWOT Analysis 2020 | SWOT Analysis of Starbucks

by Shamsul

 

Starbucks SWOT Analysis 2020 | SWOT Analysis of Starbucks

 

Starbucks is the biggest American coffeehouse chain that works in 31,256 stores across the globe. It is the world’s largest coffeehouse chain, established in Seattle, Washington in 1971. In this post, we are doing the SWOT Analysis of Starbucks.

Starbucks is no longer a coffeehouse but it is more than a coffeehouse and a possible third place between home and work. At present, there are 87k promising drink combinations at Starbucks. The current CEO of Starbucks is Kevin Johnson.

 

Company Name: Starbucks

Founded by: Gordon Bowker, Zev Siegl, Jerry Baldwin,

 CEO: Kevin Johnson

 Year established: 1971

 Headquarter: Seattle, USA

 Number of Employees (Sept 2019): 346,000

 Type: Public

 Ticker Symbol:  SBUX

 Market Cap (Feb 2020): $ 99.59 Billion

 Annual Revenue: (Sept 2019): $ 26.51 Billion

 Profit (Net income) (Sept 2019): $ 3.60 Billion

 

Subsidiaries: Teavana, Evolution Fresh, Seattle’s Best Coffee

 

Products & Services:   Coffee | Handcrafted Beverages | Fresh food | Non-food items | Packaged goods | Mugs and accessories | Gifts

 

Competitors: Costa Coffee | McDonald’s McCafe | Dunkin Donuts | Café Coffee Day | Tim Hortons | Costa

 

 

Did you know?

Around 87,000 drink combinations are available at Starbucks.

Starbucks SWOT Analysis 2020 | SWOT Analysis of Starbucks

SWOT Analysis of Starbucks:

Following is the SWOT analysis of Starbucks.

 

Starbucks Strengths:

  1. Powerful Brand Image:

No doubt Starbucks is one of the most famous and powerful brands in the beverage industry. With a brand value of $11.7 Billion, Starbucks kept growing in size, volume, and the number of loyal buyers.

  1. Powerful Financial Performance:

Starbucks has a powerful financial performance with yearly revenue of $26.5 Billion and a net profit of $3.6 Billion in 2019.

  1. Expansion in Stores:

According to research, the growth in stores of Starbucks has increased from 1886 to 31256 in the middle of 1998 and 2019.

  1. Extensive Global Supply Chain:

Starbucks is well known to have a wide international network of providers. Three coffee-producing areas such as Asia-Pacific, Africa, and Latin-America provide coffee beans to Starbucks.

  1. Possessions:

Recently, the company has purchased the top six companies including Evolution Fresh, Seattle’s Best Coffee, Teavana, Tazo, Torrefazione, and Italia Coffee. These possessions have confirmed pretty victoriously for Starbucks.

  1. Sensible Diversification:

Starbucks also introduces moderate diversification in beverages and food items. In recent times, they introduce ice cubes made of coffee which outcomes in a stronger coffee taste.

  1. Excellence, Flavor, and Standardization:

Starbucks has gained huge popularity in recent times because of its quality blends and luscious coffees. This globally famous coffee company provides ultimate taste, quality, and consistency in its products.

  1. Competence, Calculated Planning, and Reinvestment Plan:

The main strength of Starbucks is its Strategic planning and working efficiency. The company reinvests its incomes in growing its business in various locations of the world. This thing helps a lot of Starbucks to maintain its name and image.

  1. Employee Treatment:

Starbucks treats its employees very well which results in more contented employees serving consumers well. Starbucks is in the list of Fortune’s Top 100 Places to work.

  1. Gender Unbiased Toilets:

Recently, Starbucks introduces gender-neutral toilets to protect LGBT (Lesbian, Gay, Bisexual, and Transgender) society against inequity. This is due to the Anti-LGBTQ bill that classifies against transgender people.

 

Starbucks SWOT Analysis 2020 | SWOT Analysis of Starbucks

Starbucks Weaknesses:

  1. Expensive Rates:

The high prices of Starbucks products are not affordable for working and middle-class people. Their prices are expensive than McDonald’s and other coffee shops. They should revise their pricing policy to make Starbucks even more successful.

  1. Limitation of New Products:

Truly speaking, Starbucks does not possess the most exceptional products in the circle. This can be a weakness of Starbucks because other coffeehouses offer almost the same products such as McDonald’s McCafe and Dunkin Donuts.

  1. Universal Standards for Most Products:

Starbucks provides generalized products all over the world. These offerings are not associated with cultural standards and customer preference.

  1. European Tax Avoidance:

Starbucks had faced a lot of backlash and controversies due to tax avoidance in the UK. Reuters disclose that it did not pay tax on its £1.3 Billion of sales in 3 years.

  1. Procurement Practices:

Most of the social and environmental campaigners criticized Starbucks for their immoral procurement practices. The activist claimed that the company obtains coffee beans from poor third-world farmers. This is against the ‘’Fair Coffee Trade’’ rules.

  1. Recall of Products:

Starbucks recently recalled a lot of in-demand products to its system. This thing has damaged the brand image badly and direct to the loss of the consumer base. Starbucks recalled 2 products such as sausage, egg, and a cheddar breakfast sandwich, and the other was the cheese and fruit bistro box. During usual testing, it was founded that the breakfast sandwiches had the existence of Listeria Monocytogenes on the surface. And on the other hand, some traces of cashew nuts were found on the bistro box. No caution label shows the existence of cashew nuts. This could be risky for the community with cashew allergies.

 

Starbucks SWOT Analysis 2020 | SWOT Analysis of Starbucks

Starbucks Opportunities:

  1. Growth in Developing Markets:

Starbucks has a lot of branches in the US. It’s a big opportunity for Starbucks to open more coffeehouse chains in India, China, and a few areas of Africa because these areas can give a great profit.

  1. Business Diversification and Products Specifications:

With diversification, Starbucks can generate great revenue and opportunities. They should develop products according to consumer preferences. This is a great opportunity to make Starbucks more profitable.

  1. Introducing Latest Products:

Starbucks is a popular coffee brand, but introducing new products under its banner would be money-making.

  1. Joint Ventures or Alliances with other Firms:

Co-branding is a helpful tool to make your brand more popular. Starbucks should develop alliances or partnerships with major companies. In this way, they can build up their company and market share.

  1. Gender Unbiased Toilets:

Recently, Starbucks introduces gender-neutral toilets to protect LGBT (Lesbian, Gay, Bisexual, and Transgender) society against inequity. This is due to the Anti-LGBTQ bill that classifies against transgender people.

 

Starbucks SWOT Analysis 2020 | SWOT Analysis of Starbucks

Starbucks Threats:

  1. Contest with Low-cost Coffee Suppliers:

At present, most of the coffeehouses provide reasonable products in the market. This can be a serious threat to Starbucks. So, Starbucks should revise its pricing policy to maintain its customer base.

  1. Competition with Big Outlets:

Multinational companies like McDonald and Dunkin Donuts can also a big threat for Starbucks to steal its fan-base and engagement.

  1. Replication:

Competitors can sell fake coffee and products to damage your brand name and image.

  1. Independent Coffeehouse Movements:

Currently, Starbucks faces many socio-cultural threats. These movements help small and neighboring coffeehouse and resist the development of big multinational companies.

  1. Controversy on California Warning Rule:

In March 2018, a California judge ruled Starbucks and similar companies to mention warning labels on their products. This thing also damages the image of Starbucks.

  1. Philadelphia Arrests:

In April 2018, the Starbucks employees refused 2 people to use the toilets because they didn’t buy anything. This can cause great controversy and these people are arrested at Starbucks. This event also harms the brand name.

  1. Coronavirus Epidemic:

Due to this Coronavirus, Starbucks provisionally closed 2000 stores in China. The total number of Starbucks stores in China is 4123, this means half of them are closed. It will have an unconstructive impact on their financials.

 

Starbucks SWOT Analysis 2020 | SWOT Analysis of Starbucks

Recommendations:

Starbucks should introduce innovative ideas and products in the company to maintain its market share and revenue.

  1. Introduce new products and better services.
  2. Introduce technological advancements in the business.
  3. Address serious issues or problems wisely.
  4. Revise prices and attract more consumers.
  5. Execute creative marketing movements, activities, and strategies.
  6. Donate to community development and participate in CSR and sustainability practices.

 

Read More:

SWOT of American Express | American Express SWOT Analysis

SWOT of Amazon | Amazon SWOT Analysis

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SWOT Analysis of Uber
SWOT & PESTLE 

Uber SWOT Analysis | The SWOT Analysis of Uber

by Shamsul

 

Uber SWOT Analysis | The SWOT Analysis of Uber

Date: 7th Sep. 2020

 

Company: Uber

CEO: Dara Khosrowshahi

Year founded: 2009

Founded: Founded in 2009 by long-serving CEO Travis Kalanick (now resigned, though still on the board)

Headquarter: San Francisco, USA

Number of Employees (2018): 16,000+

Public or Private: Public

Ticker Symbol: UBER

Market Cap (Sep 4 2020): $ 58.26B

Annual Revenue: Revenue stands in 2019 $4.1 billion, It is growing 37% year-over-year.

Profit |Net income:  Uber presented an operating loss of $3 billion in 2018 after losing more than $4 billion the prior year. (The company recorded a net profit last year because of $5 billion worth of one-time gains, mostly from selling its Russian and Southeast Asian businesses.)

Products & Services: UberX | UberSUV |UberBlack | UberXL | UberPool | UberPlus | Uber eats | UberSelect

Competitors: Lyft | Curd | Ola Cabs | Didi Chuxing | Grab

 

Fun Fact:

Did you know that 87% of Uber drivers said they drive on the Uber platform because they get to be their own boss?

 

Uber SWOT Analysis | The SWOT Analysis of Uber

 

An Overview of Uber

Uber is one of the biggest online cab services with it’s headquarter located in San Francisco, California. It provides peer-to-peer taxi cab, ridesharing, food delivery, and transportation services. It is operating currently over 900 cities globally. This platform is accessible through its online-based website and mobile apps. As its launch, the company has considerably had an effect on the overall economy. This kind of effect of Uber on other businesses is termed as ‘’Uberization’’.

The name of Uber comes from the most common word which stands for ‘Super’ or ‘Topmost’. Uber is best known for its rapid, luxurious, easy, and simple transportation services.

Recently, Uber launched the ridesharing app phenomenon. There’s no need to step out of your house to hire a cab. It is an all-time favorite service of travelers and android users. You can book an Uber ride from your home and the driver will come to your place at a given time. It’s a big inspiration for many other ridesharing app services such as Lyft, Didi, and Ola.

The company has grown exponentially from the last few years in spite of all the negative reviews and condemnation. But still Uber has a lot of potential and opportunities to introduce and generate heavy revenue. Every company has certain strengths, weaknesses, opportunities, and threats.

 

Uber SWOT Analysis | The SWOT Analysis of Uber

Uber SWOT Analysis:

Today, we are analyzing SWOT (Strengths, Weaknesses, Opportunities, and Threats) of Uber in detail.

Uber’s Strengths:

1- Leading Ride-Sharing Technology:

Uber has pioneered itself as the leading ridesharing technology worldwide. It is one of the first ridesharing apps, working around the world. In the 2nd quarter of 2020, 55 million people used the Uber app on a monthly basis. Uber has completed more than 5 billion rides worldwide and fulfills 40 Million rides per month only in the USA. Users are right now in the major 900 cities of the world.

 

2- Strong Brand Identification:

Since its launch, Uber has sustained its position and brand recognition in 50+ countries. It has previously overtaken Honda, GM, and Ford concerning brand worth structure. With these innovative ideas and improvements, Uber will get stronger brand identification in the future. At this time, Uber stands at $72 Billion.

 

3- Low Permanent Investments:

Uber is based on low fixed investments and has simply accessed more cities in its system. Because there’s no permanent communication and investment, Uber tends to increase at a rapid speed.

 

4- Variable Pricing Plan:

‘’Higher the demand; higher the price’’ strategy has confirmed to be valuable for the drivers and the company. This dynamic pricing strategy allows drivers to earn significant money at night and throughout bad weather conditions.

 

5- Adaptive Environment:

The adaptive environment of the company has huge appreciation around the world. Because Uber has a strong impact globally that’s why it gives trust and consistency to its customers. For example, Uber uses its social media accounts to remain in touch with their customers or consumers. They also advertise brand services, deals, promotions, and updates through social media platforms such as Instagram, Twitter, and Facebook. Plus, they also address the complaints through social media. This smart marketing allows the company to engage with their loyal consumers and quick feedback.

 

6- Highly Affordable as Compared to Cabs and other Ride-Sharing Apps:

You can easily book a ride at an affordable price through a mobile app. Uber facilitate their users in every aspect and charges per minute and per mile for moving and idling both. This kind of strategy has confirmed beneficial for users. Uber is one of the cheapest ridesharing services as compared to Lyft and SideCar in 20 main U.S cities. But the price may vary due to geographical location, rush pricing, cancellation charges, and distance traveled.

7- Consumer to Driver Relations:

Uber business model is perfect for a consumer to driver interaction. The company has formulated a rating system that allows the user to rate their moving experience plus the driver. In this way, the company identifies the top drivers and improves its performance.

Uber SWOT Analysis | The SWOT Analysis of Uber

Uber’s Weaknesses:

1- Numerous Scandals:

Recently, Uber has faced a huge backlash and negative exposure due to multiple controversies such as sexual harassment and beleaguered attacks. As a result, the co-founder of Uber Travis Kalanick had to leave his job. The public protest on social media with the trend #DeleteUber and almost 500k consumers removed their accounts in 2017.

 

2- Substantial Losses:

After facing a lot of criticism, the company had to face substantial losses in its revenue. Uber offers special bonuses to its drivers and exceptional discounts to its customers in order to compete. This strategy resulted in Uber’s net losses to surpass $2.75 Billion.

 

3- Dependency on the Workforce:

Uber is totally dependent on its workforce. The unpredictable behavior of drivers has spoiled the company name and image. In the US, almost 103 Uber drivers were blamed for the abuse and sexual harassment which predicts a poor image of the company culture.

 

4- Public Criticism:

During Sandy Hurricane, Uber experienced a strict public criticism over its sky-scraping prices. So, the company had to revise its pricing policy.

Uber SWOT Analysis | The SWOT Analysis of Uber

Uber’s Opportunities:

Accountability and Performance:

It is a fact that people don’t want to travel in lecherous and unorganized cab services. It’s a big chance for Uber to maintain its performance and check the driver’s behavior. This kind of accountability will improve the behavior of drivers and performance. The company can recognize its top performers by tracking their work. Most importantly, if the company has succeeded to address sexual misconduct then there’s a huge scope to generate profit.

 

2- Employ Digitalization:

The scope of digitalization is increasing regularly. The power of the internet can change the face of the world. Uber should maintain to spend in Uber Eats and increase its fan-following. Uber should focus to start its operations in China and Denmark to increase customers.

 

3- Driverless Technology:

Uber should think about driverless technology in order to prevent sexual harassment and abuse cases. They should start new services such as ambulance and other emergency vehicles. This is the best way to gain more fame in public and typical media.

 

4- Logistics:

Uber can introduce its mover and packer services for the customer’s ease. They have many resources to initiate this project.

 

Uber SWOT Analysis | The SWOT Analysis of Uber

Uber’s Threats:

1- Consumer and Worker Retention:

It is important to create a balance between customers and employees. As we know that, the competition in the market has regularly increased so a little incentive from the opponent is enough to rob Uber consumer base and workers.

 

2- Lawsuit:

Almost 300k Uber drivers filed a court case against the company due to its negligible wage strategy. But this kind of happenings can destroy the image of the company.

 

3- Growing Competitors:

Other ridesharing companies such as Lyft and Didi are the biggest competitors of Uber. In fact, Ola in India has extensively damaged Uber.

 

Final Thoughts:

With the help of the Uber SWOT analysis, you can easily know the problems of transportation services. Despite all the scandals, the future of Uber looks promising. With the assistance of a professional team and management, Uber has the potential to increase its customer base and popularity.

   
Please share your views and comments in the comments section.

 

Read More:

PESTLE Analysis of Starbucks | Starbucks PESTLE

PESTLE ANALYSIS and Its Impacts on Marketing

SWOT Analysis || SWOT Matrix || Strategic Assessment

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