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SWOT analysis for Gymboree - Essay Example

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The company is known to be operating in more than one country, providing services in the USA, Canada and Puerto Rico. The major chunk of the company’s activities is carried out in regional…
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SWOT analysis for Gymboree

1) Size of the Company: Gymboree Corporation runs more than 900 retail stores. This gives the firms an edge over its competitors and allows the company to operate on a large scale enjoying the economies of scale.
2) Multinational Operations: The firm is found to be present in more than one country. This means that the firm does not have all its eggs in one basket and it can weather the storm by offsetting a plummeting demand effect in one country against booming demand in another.
3) Not dependent on one large supplier: The firm’s supplies come from India, China, Indonesia and other countries. This saves the firm from relying heavily on one large supplier and hence suppliers cannot put unnecessary stress on the company. (Daft, 1994)
1) Heavy Dependence on One Major Buying Agent: One buying agent of the company manages 90% of the firm’s inventory purchases. This means that if some goes wrong with this buying agent, the entire business will suffer
2) Computer Dependence: The firm’s operations are highly mechanized. The firm is characterized by extensive use of computer. However, any computer failure can cost the firm dearly as the entire firm’s processes are dependent on computerized instructions.
Improvement in Communication and Transportation Facilities: In the last few years, the improvement in the infrastructural facilities has helped the company to receive its supplies on time and instructions to the suppliers can now be made quickly due to ever improving communication facilities.
E-Commerce: Improvement in information technology has helped the company to sell online. This is reflected in the company’s financial statements which now show increase in the profits as compare to the last few years. It has helped the company to sell in countries where it is not physically present. (Chrystal and Lipsey, 2003)
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