For my final paper i will be doing a SWOT analysis on Chanel and their hesitance toward offering their products online. It is clear that there are many factors, both good and bad, to consider when making the decision to go online. Our society is quickly making the shift from the physical world to the virtual world, and although Chanel is trying to keep it’s brands exclusivity, it would be smart and also beneficial for them to follow this movement. Here is the SWOT Analysis i have come up with
Strengths: There is a high demand for their products; which are also of good quality and reputation. Online would increase online traffic and also their sales all around.
Weaknesses: takes away from brand exclusivity and may cause loss of jobs or store closings because everything is becoming available online (sometimes more things are offered online than in the actual store).
Opportunities: This would expand their market to a whole segment of consumers who have been unable to purchase Chanel products due to geographic location. Whether this is local or global, it is still an issue and can be resolved by offering their products to be sold on their website.
Threats: The online site could not do as well as planned. along with weaknesses, it could cause a loss of jobs and store closings.