Swot Analysis of Dunnes Stores

Topics: Marketing, Strategic management, SWOT analysis Pages: 6 (2300 words) Published: March 12, 2013
SWOT analysis of Dunnes Stores
In this part of project I will try to analyse Dunnes Stores using very useful tool in business environment called SWOT analysis. Abbreviation SWOT stands for Strengths, Weaknesses, Opportunities and Threads. It analyse internal factors of business, the Strengths and Weaknesses as well as external factors which are Opportunities and Threads. It is one of most popular technics used for gathering and comparing information, it used as universal tool for the first stage of strategic planning. It looks inside the company and the environment it operates. Depth of analysis depend on information available, in case of Dunnes Stores most of the info that can be useful relates to external factors, as the company is not willing to provide any data or reports to the public.

In this section by describing strengths of the business we will try to show positive aspects of it, all what is an advantage of the company itself as well as advantage that the business has over competitors and what is under control its control. Below I will present main strengths of Dunnes Stores. * One of the advantages of Dunnes Store is that is an Irish company with long tradition, but this a positive aspect when we are taking into consideration the Irish market, because the company operates as well in other countries where this fact can be ignored by customers as they can have more trust to their local retailers. Whatever we are looking from Irish perspective and the fact that this is the national business is proudly used by Dunnes to build good reputation; this is reflected in Dunnes advertisement campaign with famous slogan ‘The difference is we're Irish”. People tend to shop in places they know and they can trust, Dunnes Stores had built its good image for many years and no doubt this is the strength of the company. * Dunnes Stores is offering very good and friendly shopping environment to its customers, usually stores are big, products are easy to find and there is always member of staff on the shop floor ready to help with shopping or to carry goods to the car if that kind of help is needed. Very often there is a place in the store where the customers can stop for coffee and meal, all of that is part of company’s policy which is, putting the customers first. * Another advantage of Dunnes is that customers can find sections with different products categories in one store, such as grocery, homeware, kitchen appliances, stationery, books, DVD’s, clothing for man, woman or children. In this area company has an advantage over its competitors, what we can see in stores like Aldi or Lidl is that they have products from similar categories but mostly can be found in baskets in the middle of the store or on the stands, while in Dunnes products from different categories are in different sections and are divided into sub-sections. * Strength which is attractive for the customers is range of the prices offered by Dunnes for its products. Everyone can find good quality products at the price level suitable for its “pocket”. One of the cheap brands is “ST. Bernard” which is range of cheapest products but still with quiet good quality, and this not only food brand but also other sections of the store offer products marked with this name such as; plastic bags, washing liquids, toilet paper. Another convenience brand is “Dunnes Stores”, this represent company’s offer of textiles, homeware, and food, company states that this brand has good quality as best branded products. * Dunnes Stores Value Club card which was created for loyalty programme is putting company over its competitors, not all of them are giving that kind of opportunity to their customers. Programme created by Dunnes was working very well from the start, as in 2009 it was one of the factors that helped the company increase its market share beating Tesco of which market share was fallen at that time. The points collected during every visit in the one...
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