SWOT Analysis - Lafuma

Extract

[...] The company has successfully integrated the four key components of digital transformation: digital integration in processes, digital integration in marketing and customer relationship management, digital integration in the value chain, and the use of technology to explore new products and market opportunities. - Leveraging the power of analytics in business decision-making. This has elevated the company to the forefront of the apparel and accessories industry. France's technological infrastructure is also assisting it in harnessing the power of analytics for marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain, and other purposes. [...]

[...] The same year, Lafuma had a turnover worth 9,081,000 euros. The next year, the company's Net profit was 5,112,000 euros. Lafuma has eight production sites around the world, including four in France, one in Hungary, one in Tunisia, one in Morocco and one in China. The French market is dominant with more than half of the turnover of the group. In terms of trends, the Asian continent remains the most promising with more than 140 points of sale in 2014. [...]

[...] To increase revenue per employee, it must redesign the compensation structure and incentives. Hiring more specialists on a project basis, for example, is one of the steps that it can take. - Product differentiation is lacking: To increase product profitability and margins, Lafuma must offer more differentiated products than what it currently offers in the market. - High reliance on the existing supply chain: The disruption in global supply chains caused by the Covid-19 pandemic and the Suez Canal blockage demonstrated the fragile nature of the Lafuma supply chain. [...]

[...] - The business model is easily imitated by competitors within industry: To overcome these challenges, company name must develop a platform model capable of integrating suppliers, vendors, and end users. - Expensive cost of replacing existing some workers: Few employees are in charge of Lafuma's knowledge base and replacing them will be extremely difficult under the current circumstances. In other words, the dependence towards some experts within the company is too much. This should be reduced. - Low investments in customer-oriented services: This may result in competitors gaining an advantage in the near future. Lafuma should increase its investment in research and development, particularly in customer-service-oriented applications. [...]

[...] This can be extremely costly. - Interest rates: In comparison to the competition, Lafuma has borrowed money from the capital market at higher interest rates. It needs to restructure its interest payments and costs in order to compete more effectively and profitably. - High operating costs: When compared to competitors in the industry, Lafuma has high operating costs. Reducing them will help the company redirect the funds in other departments, such as R&D. This may be more difficult to maintain in the face of new emerging competition from nimble players who use technology to attract Lafuma's lucrative customers. [...]