Introduction
Canada Goose Holdings Inc. is a Canadian-based firm dealing in luxurious outwear, sportswear, and accessories. Since its establishment, the firm has been on record for its identity as a premium quality product molded to help them withstand harsh weather conditions. There have been controversial talks against the firm since it utilizes fur as the raw product (Kumar et al., 2020). However, it is a company that has been on record of enjoying some good quality performance in terms of market share in the process of ensuring that its products are sold comfortably and that the competitiveness of the firm’s products is well maintained. Therefore, this article contains the SWOT analysis of the firm since it is the tool that has been utilized by the management of the firm in the process of assessing the status of the firm from the point of its early stages through to the current level.
SWOT Analysis
SWOT analysis is utilized as a strategic planning tool by the Canada Goose Holdings Inc. leadership in the performance of the situational analysis of the company’s progress. It is noted that this analysis is a vital tool utilized in understanding the current strengths, weaknesses, opportunities, and threats that the firm faces in the current business environment. The company is noted t be one of the major firms in Canada and has had, for a good time, well-established maintenance of its position in the market through a critical SWOT analysis of the company (Xiao, 2022). SWOT analysis is noted to be a very interactive technique and needs well-designed and effective operating coordination across all departments within the firm to ensure that the company operates at the maximum levels towards ensuring that the firm gains the necessary profits, the departments within the firm include; marketing department, operations department, the management department, finance as well as strategic planning department that require a well-coordinated operation to attain the required success.
As one of the major firms in the line of operation leading in the market share, Goose Holding Inc. has a number of strengths that ensures that it continues to thrive in the marketplace with its success records. It is quite evident that the displayed strengths of the company not only enable it to defend its current market share, but it is essential too in the penetration into the new markets that emerge. As discussed, here are several strengths that the firm displays in its operation ventures.
Strengths- Internal Strategic Factors
Strong dealer community: Canada Goose Holding Inc. has developed a very promising strategy and inbuilt culture amongst the group of its dealers and distributors in which the dealers play roles not entirely in the promotion, but they as well have major investments in the process of ensuring that the teams responsible for the firm products’ sales are effectively trained such that they can efficiently explain to the target customers the importance of the company’s products such that they are well abreacted with the importance that the product sold to them contain for their wellbeing (Dooley et al., 2019). This ensures that many sales are done since if the product is well described to the consumers, the customers will have no option but to opt for the products. If the products meet their desired objectives, they can refer more customers, which is essential in ensuring that the firm penetrates the market even deeper.
Excellent performance within the new markets: the firm has developed several strategies to maximize its performance in the new markets. New markets are essential for any given organization’s success and for the stake of this firm to make very good moves in the success lane. Having tapped success in the existing markets, the firm is maintaining its grip in the market sector by advancing several techniques to ensure that before the competitors seep deep into the emerging markets, it formulates very advantageous strategies in firmly holding on to the market grounds such that there are no situations experienced intensified competition.
Strong distribution network: in just a number of years, the company has heavily invested in the rightful networks, which are even more reliable and essential in ensuring that the firm’s products reach the required markets. The company has had several effective measures put in place that ensure that the firm continues enjoying business performance.
Strong free cash flow: in order to acquire just enough required resources for the success of the firm, the company has enjoyed years of constant and reliable free cash flow, which is essential in ensuring that the firm’s products reach the entire market plus the emerging market with ease since there are just enough resources needed for the success of the initiative as well as expansion in the projects of the company (Dooley et al.,2019)
Highly skilled workforce: there are just enough human resources within Canada Goose Holdings Inc. which is essential for the high level of productivity within the firm and ensures that the firm’s programs are smoothly running in the benefiting direction of the firm. Since the firm’s genesis, the management has always ensured that they provide just enough training to the newly recruited employees to ensure that the firm’s performance is well boosted in the positive end of the pull. By having several initiatives put in place to ensure that the staff is well trained, the employees, therefore, are well equipped in such a manner that they can handle all the organizational challenges with great ease and correctly understand the assignments that they are employed to handle, this has ensured that the performance is kept so high contributing to the firm’s success.
Automation of the operations: since there has been recorded consistency in the company’s successful production of the firm’s output, the company has therefore enjoyed big success due to the improved skills of the available human resources in the production process since they are well-trained in the production of quality products thus ensuring that the desired quality products are produced in quantities while ensuring that they correctly check on the demand of the category of the product while ensuring that the supply is just enough to counter the demand of the product in the market this, therefore, ensures that the firm is in a position to diversify on the production process to ensure that the products reaching the market are of varied identities and reaching the correct market within which they are much demanded and with the correct management in place.
High customer satisfaction levels: the company has a great focus on the customer wants and has always made efforts towards ensuring that the customers get access to the desired quantity and quality of the desired products in place. This has always been met through a constant check on the customer feedback on the mode of service delivery they get and working on the areas that need improvements such that in the next encounter, the services that they are offered meet their desired standards of demand and that they are granted the correct types of products that they need to satisfy their needs, by doing this, the company has enjoyed big in ensuring that the business performance is well maintained on the healthy side.
Innovation: the company has invested largely in innovation programs to ensure that the produced products address the customers’ unique needs at the correct level of desire. This is obtained through the conduction of surveys on the customer contribution about the quality of the product while making constant adjustments on the areas that need to be adjusted on and producing various products addressing the customers’ unique wants.
Weaknesses- Internal Strategic Factors
The weaknesses experienced by Canada Goose Holdings Inc. serve as the very specific areas that need much addressed by the company such that it makes the desired improvements based on the weaknesses and ensures that it maximizes the production and the success of the firm. In line with the strategy, it entails much about the decision-making process that the firm needs to have in place to ensure that the made decisions are positively impacting the progress of the firm minus having any forms of hitches experienced in the run of the day-to-day activities of the organization (Di Leo et al., 2020). Therefore, there is a need for the firm to improve on the weaknesses discussed below to tighten the competitive advantage of the firm as well as have just a good strategic positioning through the application of the SWOT analysis.
Limited chances of success beyond the core of the business: despite being ranked the best in the line of business operation, it is noted that the culture of the operations within Canada Goose Holdings Inc. has always affected the expansion of the business into other business fronts and this has influenced the product reach to the new emerging markets. Therefore there is a need for the company to ensure that it invests in the correct management skills to ensure that it seeps into the emerging markets with a lot of ease such that it makes the required extra success moves.
The degree of investments in the research and development programs is below the anticipated level. In as much as it is performing quite well in the market and general business scope level, the company is suffering some slight elements like averagely investing on the innovation programs, unlike the competitors like Patagonia, which invest heavily in the innovation programs, thus ensuring that there is the required degree of success in the firm. Since the firm has not had much done in terms of the innovation process, there may be concerns about the future of the firm as well as its products since the competitors are majorly concentrating on the innovation programs that are essential in boosting the performance of their operations as well as reaching the emerging markets successfully. Therefore, the firm needs to hasten on this element to ensure that it expands aggressively into the new market (Collis, 2019).
The company is not well equipped for the product foreshadowing that leads to great losses in opportunities arising as opposed to the competitors: it is noted that the firm has not invested in forecasting the future performance of the products; this raises critical questions as to how the success of the future produced items will have. Whereas the competitors are so aggressive in the prediction of the future of their products in the market, Canada Goose Holdings Inc. is doing little, and this may result in a future shift in the market power from the latter company to the competitor since the competitors have formed some mechanisms of advancing their products through series of innovations which is averagely done by the company under study thus subjecting it to some extreme chances of being outsmarted in the field of operation (Georgiev et al., 2019).
There is a need to have many investments done on technological growth: since the company has got various plans and interests in advancing into new geographies containing several diverged business operating factors that affect the operations, as well as the need for the firm to expand into different fronts with the new exposure to situations that are not linearly equal, there is need for the firm, to have just enough cash put aside for effecting this initiative should there be need of any success for the firm. According to the company’s current situation, the firm is performing below the required level of development in line with the advancements; therefore, there is a call for much to be put in place to ensure that the projected success is recorded.
The firm’s structure can only be compatible with the present-time model of the business. According to the information gathered, the organization is just set to have a structure that is only compatible with the model of the business that is currently available, and this is a limiting factor since it subjects the company to critical situations of having reduced room for expansion of the product quality as well as the products of the related line of taste. Therefore, much is needed from the management of the firm to ensure that the firm has got the correct track taken in the desired move to success.
Gaps exist in the range of the products that the firm sells: the firm has yet to get any other alternative product choice which can be essential in ensuring that the competitors are strongly outcompeted in the process of winning the market set target performance. Therefore, the firm has the initiative to ensure an alternative type of product that can effectively ensure that the competition this company offers is strong and can never be outsmarted easily.
There is no clear uniqueness in the product selling strategy: in as much as the desired performance of the firm’s products, in the real sense, there are never very open (Collis, 2019)—strategies, as well as the well-defined uniqueness of the products that are sold by the business. The minimized chances of gaining the necessary insight on the unique methodologies applied in the sales of these products ensure that there is just much ambiguity in the performance of the business, which is hard to give clearly defined states of the competition that the competitors are offered in the process of trying to outsmart it.
Opportunities
New openings of the emerging markets based on the agreements by the government: the advancements that the firm has shown in terms of the improvements in levels of technology within the operation of the company. This has been noted to be of great essence in ensuring that there are improved degrees of productions process as well as the extent of efficiency in the operations. However, there is much that has been noted to be on the improvement side since some successful business and government agreements are of the essence in ensuring peaceful advancement into emerging markets to ensure that the company has more room for expansion.
The steady free flow of cash: this is of great essence since it is a situation that can result in investments done on the surplus that is available within the firm; it also ensures that the company moves much deeper into its operations in emerging markets. Since there will be enough cash and resources, there will be some improved stakes in the firm’s progress into the new market opportunities, ensuring the required success.
The development of the market: the development of the market is of great importance in ensuring that the firm is well positioned to tap a huge fraction of the market, thus ensuring that it dips its roots deep into the markets, thus outcompeting the competitors in the field which is of great importance in ensuring that the required competitive advantage is attained throughout the performance of the firm as compared to the competitors.
A new set of customers that are online based: in recent times, the firm has had several investments done targeting the online platforms of the firm to ensure that it taps the clients from all corners. The firm implements this strategy to ensure that it only partially depends on the physically available customers; the online community has played a vital role in ensuring a boosted revenue generated from the business. Therefore, there is a need to have much research done on the need to have much of the improved expertise in the field to ensure that it is easily interpreted to the customers to know the business goals.
The green drive initiated by the government: this initiative has been utilized as a gap for improvement of the performance of the business by the firm management; this is attained through the utilization of the market offered by the government of the day, which later in the days did not bother doing which ensures that there is an improvement in the performance. With the expanded market scope, the company has enjoyed an additional market for its products and needs to be better favored by government-initiated policies (Clancy, 2021).
The success noted by the staff members who are well trained can utilize the acquired skills in investing in other new products. Therefore, this gap will greatly impact it because it will be easier to adopt the approach they have issued on the available products. The other sets of activities they may involve in include; healthcare, among other friends.
Threats- External Strategic factors
Increase in the cost of raw materials: The observed rise in the cost of the raw materials utilized for the successful production of the products is just one of the major factors that will bring some potential risks of loss incurred by the firm. This is because, should the prices of raw materials increase, then there is an automatic rise in the production costs such that it may be hard to advance in the same budget while the cost needed for the customers be convinced with the recent pricings that will keep away the majority of the population since there are alternatives that can be opted to (Recaj, 2021).
The constant trend reported on the changing customer wants through the online platforms: this is noted that there is an ever-changing demand of the customers with the daily moves that they depict. If the customer shifts their taste, then there is a projected downfall for the individual, and this will be for the whole firm since the company has not also adopted various means of innovating much in the production process to ensure that there is an automatic substitute for the product, since the company focuses majorly on some very fixed strategy. Therefore, there will be a demand for extra human resources and innovative training to ensure that the firm has many detected quarrels (Li et al., 2019).
The change that the firm has developed for the customers that have the urge to procure online into the physical and this is in case there is the much-projected growth since shifting the platform through which they make their orders, at the point of their comforts be under uneasy condition for the health of the firm since much of the members will be out to ensure that the success is upheld otherwise if there is no well-chained model then there are just losses that will be incurred since the user-friendly mode that would have been enjoyed is faulted.
Since the business will be plying different borders in the process of seeking the depths of the markets, the business will be faced with several legal processes since different governments have got different operation modes; thus, should there be cases like this in the operations, then there is a projected hectic progress of the operations of the company. Some costs are incurred in ensuring that the legal processes are well kept and that the major goal is to make profits, therefore in the process of making sales, so there is a need to be keen on the impacts of such legal progress can lead us. Therefore this may also subject the firm to some very traumatizing below-the-game advances in the mechanical area.
The firm needs to improve in the needed innovative actions to ensure that the products reach the market in the top-notch aesthetic beauty but rather an averagely performing company. Leaving the innovation field for the competitors is a clear indication that there is a terrifying outcome since should it maintain the average course of innovation, then it is a guarantee that the bro shall have failed in tapping the clients since it does not seem to firmly grip that which is available (Department, nd.). To counter all these, the firm is therefore supposed to employ several innovative moves that are essential in ensuring that the business performance is moving in the correct direction.
The adoption of new technologies by the competitors of the firm is selling their quality in the field of production, therefore should there be a need to advance and make good use of the available success, which is mine in the point of interanion. To outshine the competitors, there is a need to be a fast company to adopt the new technology to ensure that even in competition in the field, the competitors are constantly assimilating technological advances. I remained to like the place, therefore, to ensure that this firm taps the necessary success. There is a need not only to remain aggressive in other fields but remember that there are just a number of advancing technologies that should be navigated.
Various countries have a number of liability laws, which will be an impeding rock behind the liability laws, which may be of great essence in ensuring that the various set of arguments in terms of the management process, there will be issues of legal laws in every government. There is a projected suppressed performance of the firm. Therefore, this may present the firm with various factors that may result in overspending on the manufacturing cost while receiving a low level of revenue generated by the business. Therefore, it is great to have some of the products sold on various platforms, including peaceful decisions, to ensure everything is right. In the new markets that the firm enjoys, it should, however, advance on the innovation and properly plan on advancing technology, among others of equal impact, to ensure that the struggle is directed to the right winning path.
References
Clancy, C. (2021). More-than-human territoriality: the contested spaces and beastly places of Canada geese in Europe’s largest urban wetland. Urban Geography, 1-23.
Collis, D. J. (2019). Can you say what your strategy is?
Department, S. M. (n.d.). Canada Goose Holdings Inc.. SWOT analysis matrix (strengths, weakness, opportunities, threats). Fern Fort University. Retrieved February 19, 2023, from http://fernfortuniversity.com/term-papers/swot/nyse/674-canada-goose-holdings-inc-.php
Di Leo, A., Sfodera, F., Cucari, N., Mattia, G., & Dezi, L. (2023). Sustainability reporting practices: an explorative analysis of luxury fashion brands. Management Decision, (ahead-of-print).
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Recaj, K. (2021). Sovereignty Sensitivity and Diaspora Discontent: Domestic Influences on Canadian Foreign Policy Decision Making in the Kosovo War (Master’s thesis, University of Waterloo).
Xiao, Y. (2022). Analysis of Business Strategies of Cross-border E-Commerce under the COVID-19–A Case Study of Koala. Journal of Education, Humanities and Social Sciences, 2, 40-48.
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