Swot of Ava
Autor: Varun Bhaskar • September 25, 2016 • Case Study • 293 Words (2 Pages) • 716 Views
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F) SWOT analysis of AVA
Strength:
- Quality curation and superior quality: Coveted premium design brands
- Filipino Diaspora as customers
- Affordable pricing
- Amazing post purchase including eye catching packaging, rapid delivery and on hand customer service
- Increased internet and mobile penetration
- Good investors like Kickstart
- Its own private label category
- Increase in online shoppers
- Exists in premature market which has a lot of future scope of expansion
- Fast growing E commerce demand
Weakness:
- Low Mobile penetration
- Difficulty in finding right talent for the company with energy, competitiveness etc.
- Existing offering were of low quality
- Dearth of mobile developer talent in Manila
- Balancing the dilution of international brand with the local ones (55% brands local, only 40 % revenue from them)
Opportunities:
- Changing fashion concepts (Exposed to American culture through trade media)
- Greater payment options like PayPal and credit cards
- Large incubators by 2 telecom operators
- Sales concentrated mainly in Luzon area (85%) – But expected to change after improvement in sales and internet penetration
- High possibility of expanding the verticals
- International expansion: To cater to Filipino Americans especially in US
Threat:
- Impact of foreign entrants like Rocket internet
- Corruption and red tape in Philippines which will impact the E commerce industry
- Management style: Workers are laidback and non-confrontational
- Competitors like US E comm- Tie up with Johnny air cargos, Lazada and Zalora
- High cost of acquiring talent in US if ventured into US
- Logistic challenges (shipping, payments and return) if expand if pursue global options
G) Critical component of their business
- Premium and curated products
- Many brands in the portfolio
- Price: Off price and full price
- Strategic partnerships: Value added relationships E.g.: Globe, BPI etc.
- Style feed: A live social shopping experience featuring trending products on the site
- Editorial content: Articles featuring content and commerce
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