Question

Create a SWOT analysis for the Fossil Watch company compared to their competitors (Guess, Michael Khors, Nordstrom)

Answer 1

Solution-

Strengths-

1. Fossil constantly modifies its products according to fashion.

2.Fossil has a wide customer reach and an established international presence

3. Fossil maintains a strong relation with its licensors thus helping to reach its wide range of customers.

4.Fossil has internationally recognized licensed and proprietary brands, and has a strong employee base of 10,000+

5.The in-house creative team of the brand ensures constant changes in fashion trends .

6. Excellent global reach and product portfolio which has watches and handbags also.

Weaknesses-

1. There is no long-term contract with third party manufacturers which may lead to price fluctuations.

2. High inventory levels at fossil can cause loss to the company

Opportunities-

1. Fossil’s expansion into international markets may bring more revenue to it.

2. It is also extending product categories of existing brands thus widening its customer base.

3.Fossil is able to frequently introduce new accessory product categories within their existing proprietary and licensed brands

Threats-

1. More international players with more brand awareness

3. Constant change in consumer fashion trends and keeping up with international fashion trends is difficult.

4.Highly competitive retail and e-commerce consumer segment