Published by MBA Skool Team, Last Updated: April 20, 2020
SWOT analysis of Sally Beauty analyses the brand by its strengths, weaknesses, opportunities & threats. In Sally Beauty SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Sally Beauty to benchmark its business & performance as compared to the competitors. Sally Beauty is one of the leading brands in the FMCG sector.
The article below lists the Sally Beauty SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Sally Beauty SWOT Analysis:
For Sally Beauty, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
Sally Beauty Strengths
The strengths of Sally Beauty looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Sally Beauty :
1. Sally Beauty is the largest professional beauty products distributor in the US 2. It has presence across multiple channels like retail, wholesale, e-commerce 3. High customer royalty and conversion of single user into dedicated customers by providing differentiated customer value proposition 4. It offers competitive pricing, convenient store location and broad selection of professional beauty products
5. Offers a loyalty program for discounts on products to its members
6. Sally has nurtured its growth through inorganic growth strategy by acquiring over 40 companies in the last 10 years
Sally Beauty Weaknesses
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Sally Beauty SWOT Analysis:
1. Sally beauty is dependent on a few manufacturers for significant portion of the products it sells
2. The company has to maintain high stock levels which could be problematic in case of change in customer trend
3. Unpredictable and high fluctuation in store sales
Sally Beauty Opportunities
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Sally Beauty SWOT Analysis:
1. Global investments to expand its international footprint, currently it serves only North and South America and Europe 2. Invest into e-commerce to and gain a foothold in the online shopping market for beauty products
3. Marketing on social media will help it gain a greater foothold, and increasing customer loyalty
Sally Beauty Threats
The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Sally Beauty are as mentioned:
1. Very low barriers to entry has led to a number of new players entering into this segment
2. Product diversion could lead to reduction in exclusivity of the company’s brands and may have an adverse impact on the company's revenues 3. Rising labor costs could impact margins and increase the operational costs too
Sally Beauty Competitors
There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of Sally Beauty:
1. L'Oreal S.A. 2. Wal-Mart Stores, Inc. 3. Ulta Salon, Cosmetics & Fragrance, Inc.
Hence this concludes the Sally Beauty SWOT analysis.
Leaders of the beauty supply industry with 50 years of experience
Sally Beauty STP
Salons, beauty professionals and consumers
Big salons and professionals
Distributor of professional beauty supplies
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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