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SWOT ANALYSIS When launching into NZ, Stella must play to their strengths, understand their weaknesses, capitalize on the opportunities and manage the threats. STRENGTHS - Dedication to Sustainability and Innovation (Figure 2)
WEAKNESSES
- Strong financial position – 50% partnership with LVMH
- High price point due to ethical standards, limiting consumer reach – can be hard
3.6 EXTERNAL ANALYSIS : SWOT ANALYSIS
- Market positioning (Luxury, Sustainable) (Figure 4)
to distinguish between mid – high fashion with broad price range (Edited, 2020)
- Strong, long lasting supplier relationship (McCartney, 2020)
- Stella admits to not being 100% sustainable or perfect (McCartney, 2020)
- Collaborations and partnerships with well regarded brands and
- Stella has been associated with brands that are not regarded sustainable which
organisations e.g. The Ellen MacArthur Foundation
may diminish their brand image e.g., Adidas
OPPORTUNITIES
THREATS
- Kiwis increasingly connected through e-commerce (Appendix 6)- increase by 14.6%
- Decrease in consumer demand due to the fall in disposable income and confidence as a
in 2021 despite declining incomes and nega\ve consumer sen\ment (IBISWorld, 2020) - Exploring new markets - Sourcing local materials to improve and innovate products (Jin & Cedrola, 2017) - Collabora\on with sustainable founda\ons e.g. Mindful Fashion New Zealand (MFNZ) who aim to build a full-circle tex\le industry (Sylvester, 2020) (Sec\on __ POES). - Accelera\on in sustainability in NZ - Aim to be the first country to be truly sustainable (Clark 2006) - Household disposable income annual growth rate (%) 2.6% higher than UK (OECD, 2020)
result of Covid-19 - As sustainability becomes a more important global trend, Stella USP may become less unique - Steep increase in prices of raw materials which may then be passed onto consumers – threat of falling demand due to higher prices and increased competition from low-priced retailers (Ezhova, 2018) - Business model could be replicated by existing and new competitors - Fall in tourism since borders closed due to Coivd-19, tourism feeds high end retail in NZ (decline in luxury sales by 23% in Q1 of 2020). Threat of low demand as tourism falls and local consumer attempt to protect local designer (Global Data, 2020).
