SWOT Analysis Assignment| Example of Forever 21

One of the very first topics taught during your management education is that of SWOT analysis. It is a well-known concept which is very useful in the business world for decision-making. And chances are you will be using it a lot of times throughout your course. Not only in the business world, but it can be applied for self-analysis and self-growth as well. It sure seems like a simple concept to grasp but why is it that you keep looking for help every time you have been prescribed a SWOT analysis assignment? Most students understand the theoretical part of the topic but don’t have a clear understanding of how it is applied in a real-life situation. Here is the SWOT analysis of Forever 21 that would help you understand how it can be applied to an actual organization.

Forever 21 

Forever 21 is a popular fast-fashion brand headquartered in Los Angeles, California. Known for its fashionable and trendy designs appealing primarily to young consumers, it has over 700 retail chain stores across the globe. While its primary focus is on women’s wear, it deals in accessories, beauty products, home goods, clothing for men and children as well.

SWOT Analysis

  1. Strengths 

Strengths are the plus points of a business that keeps it afloat and maintains a competitive edge.

  • Trendy designs: Forever 21 is known for its designs which are very trendy and youth-oriented.
  • Affordable prices:It is one of the original fast-fashion brands, offering trendy clothing at affordable prices.
  • Fresh collections: Fresh collections are introduced very frequently which never lets the consumers be bored.
  • Locations: It has a large chain of around 700 stores, employing 30,000 people. This gives wide accessibility.
  • Brand ambassadors: Ithas been associated with pop culture figures like Lady Gaga, Justin Beiber and Emma Watson which has contributed to the brand image.
  1. Weakness

These are the points or areas where the brand has room for improvement.

  • Association with teens:Too much focus on teens has led to the loss of older consumers. 
  • Quality issues:Since it is a fast-fashion brand, there have been many quality issues that has degraded the brand’s image.
  • Ethical controversies: Forever 21 has found itself in many controversies in the past few years regarding bad working conditions, low wage to workers, carbon footprint etc.
  • Similar designs:It has also been accused of copying design ideas from designers and other brands. Plus, it now has similar designs to most other brands in the market.
  1. Opportunities

These are the avenues the business has yet not capitalised on, but are present in the environment. Given the strengths of an organization, these are the opportunities the brand can grab:

  • Growing online store: Most of the fashion industry has shifted online and the brandneeds a better presence online.
  • Markets in Europe and Asia: Asian and European markets have a lot of potential.
  • Changing trends: Trends are changing rapidly and this provides ample chances to monetize.
  • Customer services: The huge employee base can be used to boost customer service.
  1. Threats 

These are factors in the environment that can hinder the prospering of the business.

  • Sustainable shoppingtrend: Consumers are looking to reduce their carbon footprint and moving away from fast fashion brands.
  • Close competitors: All the competitors like H&M, Urban Outfitters have similar designs and strategies.
  • Shift to online market: A major shift to online market is seen which makes the huge network of stores obsolete.
  • Woke youth culture: The primary consumers i.e. the youth is becoming more and more conscious and moving away from commercial and exploitative brands.

SWOT analysis is not such a complicated task but requires you to pay attention to detail. You can similarly apply it to any organization.

Summary: This write-up aims to provide better clarity on how to do a SWOT analysis, through an example.