Kankatala Textile SWOT Analysis
A SWOT analysis is a matrix representation of a company’s strengths and weaknesses, as well as the relevant opportunities and threats to the business.
Strengths
• Kankatala can sell products directly to customers through the company’s flagship shops and capture the consumers’ feedback on the products.
• The company maintains high responsiveness to the consumers’ demands and preferences.
• Kantakala textiles retains flexibility in setting the prices: when the level of profits are enough to cover the fixed costs, it can reduce prices in order to pursue the cost leadership strategy
• There exists a horizontal structure of the organization, which allows free communication between the managers and employees.
• The branch location is very apt. Flagship stores are located in the city centers and consumers can be easily attracted.
• The company has recognized brand, trustworthy reputation and loyal audience at the market.
• Advertising techniques used to reach the targeted audience are effective.
• As the company owns the property it does not have to pay rent
• Corporate social responsibility (CSR) programs increase the brand recognition and improve the company’s reputation
Weeknesses
• Maintenance of the financial records and accounting processes are inefficient.
• Some of the personnel costs can be avoided and decrease the company’s profitability.
• Excessive staff recruitment in security and cleaning
• Current suppliers of Kankatala textiles are unreliable.
• The company cannot easily adapt to the changing fashion trends.
• There is a need to update technology and equipment base.
• The parking lot provided by Kankatala is quite small creating certain inconveniences for the customers and limiting the customers’ inflow.
• The company’s management lacks coordination and consistency
• There is a lack of motivation among the company’s employees.
Opportunities
• The company maintains diverse product range of traditional clothing items for all ages and genders.
• The company has the opportunity to collaborate with vaibhav jewelers to boost sales and increase brand recognition.
• Kankatala Textiles maintains stable growth at the level of 6 to 8 per cent per annum.
• The company can refocus the core business assets towards the market of branded ready-made garments aiming to achieve further growth
• The company can launch new products made from synthetic fibers which are cheap and highly demanded
Threats
• Competitive in the industry is fierce, other big branded textile showrooms like kalanikethan, cmr, kalanjali, and others have high market prospects
• The company has to balance product range to meet the demands of the wide range of customers.
• The company has to find the right quality and price proposition within the diverse industry landscape
• The company staff are dissatisfied with the employment terms and requires higher wages.