SWOT Analysis of TWG - An Overview

Running head: ENVIRONMENTAL ANALYSIS
ENVIRONMENTAL ANALYSIS
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Author Note

ENVIRONMENTAL ANALYSIS1
Introduction
Environmental analysis refers to a strategic tool that helps in identifying all the internal
and external factors affecting an organization. TWG or The Warehouse Group was founded by
Stephen Tindall in Auckland in the year 1982. It is one of the largest retail groups in New
Zealand.
SWOT Analysis
The SWOT analysis is used in order to determine the internal and external environment
of the organization. It involves assessing the strengths, weaknesses, opportunities, and threats
and thereafter, developing appropriate strategies.
Strengths –
i. The Warehouse Group is a very reputed retail store, and it is one of the largest
in the country.
ii. The company has a wide knowledge of the retail industry.
iii. It has a huge customer base.
iv. It has a steady cash flow. In addition to this, it also a cost leadership strategy
that helps in reducing cost and increasing profitability.
Weaknesses –
i. Brand awareness is one of the major weaknesses of the company. If compared to
Walmart or Kmart retail stores, this group is lagging behind in brand awareness.
ii. Labor cost is higher in comparison to the other organizations.
iii. There is little differentiation between the products and services.

ENVIRONMENTAL ANALYSIS2
Opportunities –
i. The company can expand its business more in various other areas.
ii. It has the opportunity to increase its brand awareness through digital marketing.
iii. The company can take advantage of the growing population and international
trade in order to increase its market share.
iv. It can enter into mergers and acquisitions with leading companies in both
domestic and global markets.
Threats –
i. Presence of intense competition.
ii. Government restrictions and policies.
iii. An increase in the price of raw materials and increasing labor costs will increase
the operational cost.
iv. Influence of the trade unions can also affect the business
PESTLE Analysis
PESTLE Analysis is also called as the macro environment analysis that helps in assessing
the political, economic, social, technological, legal, and environmental factors of the area where
the business is operating.
Political -
i. New Zealand is a mixture of parliamentary democracy and constitutional
monarchy.
ii. It is politically stable.