Ralph Lauren Swot Analysis

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SWOT Analysis

Polo Ralph Lauren Corporation - SWOT Analysis examines the company’s key business structure and operations, history and products, and provides summary analysis of its key revenue lines and strategy.

Strengths:

Brand Recognition/Equity - The Ralph Lauren name and Polo logo represent a strong brand with considerable awareness among consumers around the world. Polo Ralph Lauren has leveraged his vision of classic American style into home furnishings, cosmetics and accessories and has created a portfolio of products at varying price points. The increased loyalty associated with this brand allows the company to receive higher margins for their products than most apparel companies.

Product Diversity - The company has numerous brands at different price points ranging from Chaps at the low end to the high-end black and purple labels. The brand is also used in footwear, childrenswear, furniture, paint, perfumes and luggage.

Financial Position - Ralph Lauren is a financially strong company with low debt to capital as well as high return on equity relative to other major competitors in the industry.

Positive Fashion History & Outlook - Ralph Lauren has been selling clothes for over 30 years and has a consistent, timeless sense of style. Spring and summer lines for Polo Ralph Lauren started shipping in January and were well received by buyers with quality for the Lauren line meeting Ralph Lauren’s personal expectations.

Weaknesses:

Manufacture Dependence: It should be noted the Polo operates in competitive environment and other apparel manufacturers compete for capacity and quotas on imports. As a result, large increases in demand may result in sourcing new manufacturers for which guarantees cannot be placed. The company also strives to create quality products and relies on manufacturers meeting their design quality criteria. Hence, manufacturing could be a possible bottleneck to future growth. Also, violation of labor practices by any...
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