Shop Thursdays: Post-COVID-19 Strategy Case Study Solution

Introduction

Shop Thursdays is a women's clothing boutique with two brick-and-mortar locations and a strong online presence. In response to the COVID-19 pandemic, the business had to pivot to selling all merchandise through its online platform. This move turned out to be a success, and the co-founder is now considering how to continue boosting the online segment of the business while preparing for the post-COVID-19 era.

With a commitment to quality and the latest fashion trends, Shop Thursdays are dedicated to providing its customers with exceptional products and service, both online and in-store. The business is excited about the future and looks forward to continuing to serve its customers in the post-COVID-19 era.

Situational Analysis

Shop Thursdays Internal Strength and Weakness

After analyzing and examining the case of Shop Thursday it presents various internal strengths and weaknesses. Looking over these factors represents the performance and stability of the organization. There are a few strengths and weaknesses that are highlighted after analyzing the case, which is mentioned below:

Internal Strengths

Diverse product offerings by Shop Thursdays offer a range of products, including cashmere lounge sets, non-cashmere lounge sets, pants, dresses, and shirts, which can attract customers with varying preferences. The second strength is to set high selling prices in which   Shop Thursdays' cashmere lounge set has a selling price of $670, which suggests that they may have a high-end target market willing to pay a premium for quality products. Shop Thursdays have an online store and an online manager, which can help them reach a wider audience and increase sales.

Internal Weaknesses

The first weakness is Shop Thursdays' contains high wholesale costs are relatively high, which may affect their profit margins and competitiveness. Shop Thursdays' projected annual costs, including rent, salaries, wages, utilities, depreciation, insurance, and other fees, are quite high, which might bind their capability to spend to further extents of the business or reduce prices to remain competitive.

The last weakness is that they have limited market research, the given information in the case doesn't indicate whether Shop Thursdays has conducted extensive market research to determine customer preferences and demand for their products. This may affect their ability to make informed business decisions and potentially miss out on opportunities.

Shop Thursday External Operating Environment

The external environment in which Shop Thursdays is operating can be analyzed using the “PESTEL” framework, which includes six different factors that distress the business externally and eventually disturb the operations of the business. Firstly, looking over the political factor of the organization and it presents that there is no significant effect occurring on the operation of Shop Thursday by politics. Now moving forward, the other factor is economic, which consider favorable for the business because the economy is generally stable, and consumers are willing to spend on luxury items like cashmere loungewear.

However, there is a risk of economic downturns or recessions that could affect consumer spending. The third social factor is also considered to be favorable because, there is a growing trend of consumers prioritizing comfort and relaxation, leading to increased demand for loungewear. Additionally, there is a growing interest in sustainably and ethics, which could benefit the business if it can incorporate those values into its operations.

The technological factor is changing quickly and it considers to be important for the business to keep up with the latest trends and innovations in the industry to remain competitive. The rise of e-commerce and social media has made it easier for businesses to reach customers online, and Shop Thursdays should consider investing in online marketing and sales channels to expand its reach. The fashion industry is known for its environmental impact, and there is a growing concern among consumers about the sustainability of fashion products.

Shop Thursdays should consider incorporating eco-friendly and sustainable practices into its operations to appeal to these consumers and reduce its environmental footprint. The last factor is legal in which Shop Thursday has to comply with various legal regulations related to labor, taxes, and intellectual property rights. Additionally, it should be aware of any regulations related to environmental sustainability in the fashion industry.

Qualitative Pros and Cons of (Maintaining the Exchange Tower Location)

Pros

There are a few advantages of putting the focus on the exchange tower location, which includes, high foot traffic in the Exchange Tower location due to its location in a commercial building, making it more accessible to potential customers. It has a physical storefront in a busy location can help increase brand recognition and visibility. A physical location allows customers to interact with staff and products in person, which can provide a more personalized shopping experience...........

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