Tilly's: Business Model, SWOT Analysis, and Competitors 2024

Tilly's, a popular retail chain specializing in apparel, accessories, and footwear for young adults, has established a strong presence in the fashion industry. This blog article delves into Tilly's business model, providing insights into its operational strategies and revenue streams. Additionally, a comprehensive SWOT analysis will highlight the company's strengths, weaknesses, opportunities, and threats. Finally, we will examine Tilly's key competitors in 2024, offering a detailed comparison to better understand its market position.

### What You Will Learn

• Ownership and Mission: Discover who owns Tilly's and understand the core principles driving their mission statement.
• Revenue Streams and Business Strategy: Learn how Tilly's generates revenue and get a detailed breakdown of their business model using the Business Model Canvas framework.
• Market Position and Competitive Landscape: Identify Tilly's key competitors and gain insights from a comprehensive SWOT analysis.

Who owns Tilly's?

Who Owns Tilly's?

Tilly's, a popular American retail company known for its extensive range of surfwear, skatewear, and casual apparel, has an intriguing ownership story. The company was founded in 1982 by Hezy Shaked and Tilly Levine, and it has grown significantly over the years. Today, Tilly's operates over 200 stores across the United States and has a strong online presence.

Hezy Shaked is a key figure in the ownership structure and ongoing operations of Tilly's. Hezy, who co-founded the company with his then-wife Tilly Levine, has been pivotal in steering the company from a small retail store to a publicly traded entity. In 2012, Tilly's went public, and they began trading on the New York Stock Exchange under the ticker symbol TLYS. This transition brought in numerous shareholders, making Tilly's ownership more complex and distributed among public investors.

Despite the public offering, Hezy Shaked retained a significant portion of ownership and influence within the company. As of the latest reports, Shaked remains a substantial shareholder and continues to play an active role in the company's strategic decisions. His vision and leadership are often credited with maintaining the brand's core values and ensuring its growth trajectory.

In addition to Hezy Shaked, institutional investors also hold significant shares in Tilly's. These investors include mutual funds, pension funds, and other investment entities that see potential in the company's market position and financial performance. The involvement of these institutional investors adds a layer of stability and confidence in the company's governance and future prospects.

Moreover, Tilly's has a board of directors and an executive team that oversees the company's operations and strategic direction. The board includes experienced professionals from various backgrounds, contributing their expertise to guide Tilly's through the competitive retail landscape.

In summary, while Tilly's is a publicly traded company with shares owned by numerous investors, Hezy Shaked remains a prominent figure in its ownership and leadership. The combined efforts of the founding team, institutional investors, and the board of directors continue to drive Tilly's forward, ensuring its place as a beloved retailer in the surf and skate community.

What is the mission statement of Tilly's?

What is the Mission Statement of Tilly's?

Tilly's, a well-known retail chain specializing in casual apparel, footwear, and accessories, has carved out a niche in the lifestyle and youth culture market. The mission statement of Tilly's reflects their commitment to providing a unique shopping experience that resonates with their target audience, primarily teens and young adults.

The core mission of Tilly's can be summarized as follows:

"To deliver the most relevant and inspiring mix of merchandise that supports an active and expressive lifestyle, while providing exceptional customer service."

Let's break down the key components of this mission statement:

1. Relevant and Inspiring Merchandise:

   • Tilly's aims to stay ahead of trends and offer products that are not only fashionable but also resonate with the interests and lifestyles of their customers. This includes a curated selection of clothing, accessories, and footwear that reflect the latest in youth culture and streetwear.

2. Support for an Active and Expressive Lifestyle:

   • The brand focuses on promoting an active lifestyle, which is evident in their range of products that cater to activities like skateboarding, surfing, and other outdoor pursuits. Additionally, Tilly's encourages self-expression through fashion, providing their customers with the tools to showcase their unique personalities and tastes.

3. Exceptional Customer Service:

   • Tilly's places a strong emphasis on delivering a superior shopping experience, both in-store and online. This means offering knowledgeable and friendly service, ensuring that customers feel valued and supported throughout their shopping journey.

By adhering to these principles, Tilly's strives to create a shopping environment that not only meets the needs of their customers but also inspires them to live their best, most authentic lives. The mission statement serves as a guiding star for all of Tilly's business decisions, from product selection to customer interactions, ensuring that they remain a beloved and relevant brand in the ever-evolving retail landscape.

How does Tilly's make money?

How does Tilly's make money?

Tilly's, a popular retail chain specializing in casual apparel, footwear, and accessories aimed primarily at teens and young adults, generates revenue through various streams. Here are the key components of their business model:

Retail Sales

The primary source of revenue for Tilly's comes from its retail sales. With a significant number of brick-and-mortar stores across the United States, Tilly's attracts customers through a vibrant in-store shopping experience. These physical locations allow customers to try on clothing, get a feel for the quality of the products, and make immediate purchases. Sales associates and in-store promotions also play a critical role in driving sales and enhancing the customer experience.

E-commerce

In addition to its physical stores, Tilly's has a robust online presence. Their e-commerce platform allows customers to shop from the comfort of their homes, browse through an extensive catalog, and take advantage of online-exclusive deals and promotions. The website is optimized for both desktop and mobile devices, ensuring a seamless shopping experience. The online store not only extends Tilly's reach beyond geographical limitations but also provides valuable customer data that can be used for personalized marketing efforts.

Private Label and Exclusive Brands

Tilly's offers a mix of well-known brands and private label merchandise. By developing and selling its own exclusive brands, Tilly's can enjoy higher profit margins compared to third-party branded products. These private label items are often curated to align with the latest fashion trends, ensuring they meet the preferences of their target demographic. By having control over the design, production, and pricing, Tilly's can strategically position these products to maximize profitability.

Seasonal and Limited-Edition Collections

Tilly's frequently collaborates with popular brands and influencers to create limited-edition collections. These exclusive collaborations generate buzz and urgency among shoppers, encouraging them to make a purchase before the items sell out. Seasonal collections that align with back-to-school periods, holidays, and other key shopping seasons also help boost sales during peak times. These strategies not only drive short-term revenue but also enhance brand loyalty and customer engagement.

Loyalty Programs and Marketing Initiatives

Tilly's employs various marketing strategies to attract and retain customers. Their loyalty program, known as "Tilly's Rewards," offers members exclusive discounts, early access to sales, and other perks. This incentivizes repeat purchases and fosters a sense of community among shoppers. Additionally, Tilly's leverages social media, email marketing, and influencer partnerships to reach their target audience and drive traffic to both their online and physical stores.

In-store Events and Experiences

To enhance the in-store experience and drive foot traffic, Tilly's often hosts events, such as fashion shows, meet-and-greets with influencers, and live music performances. These events create a lively and engaging atmosphere, encouraging customers to visit the stores and make purchases. They also provide opportunities for social media engagement, as attendees are likely to share their experiences online, further promoting the Tilly's brand.

By combining these diverse revenue streams, Tilly's effectively capitalizes on both traditional retail and modern e-commerce opportunities, ensuring steady growth and profitability in a competitive market.

Tilly's Business Model Canvas Explained

Tilly's Business Model Canvas Explained

Tilly's Business Model Canvas is a strategic tool that provides a comprehensive view of Tilly's business operations, helping to identify key components that drive the company's success. This framework is instrumental for understanding how Tilly creates, delivers, and captures value. Let's break down each segment of the canvas in detail:

Key Partners

Tilly's relies on a network of key partners to enhance its business operations and deliver value to its customers. These partners include:

• Suppliers: Tilly's sources its products from various suppliers who provide high-quality materials and goods.
• Logistics Providers: Efficient delivery and distribution channels ensure that products reach customers in a timely manner.
• Marketing Agencies: External agencies help in crafting and executing marketing campaigns to boost brand visibility and customer engagement.
• Technology Providers: Partnerships with technology firms enable Tilly's to leverage cutting-edge solutions for e-commerce, customer service, and data analytics.

Key Activities

The core activities that Tilly's engages in to drive its business model include:

• Product Design and Development: Creating unique, trendy, and high-quality products that appeal to their target market.
• Marketing and Sales: Implementing effective marketing strategies to attract and retain customers through various channels, including social media, email marketing, and in-store promotions.
• Customer Service: Providing excellent customer support to enhance the shopping experience and build customer loyalty.
• Supply Chain Management: Ensuring efficient and cost-effective procurement, production, and distribution processes.

Key Resources

Tilly's leverages several key resources to maintain its competitive edge:

• Brand Reputation: A strong brand identity that resonates with its target audience.
• Human Resources: Talented designers, marketers, sales staff, and customer service representatives who drive business operations.
• Technology Infrastructure: Robust e-commerce platforms, CRM systems, and data analytics tools.
• Retail Locations: Well-placed physical stores that provide a tangible shopping experience.

Value Propositions

Tilly's offers unique value propositions that set it apart from competitors:

• Fashionable Products: Trendy, stylish, and high-quality apparel and accessories.
• Customer Experience: A seamless shopping experience across online and offline channels.
• Brand Loyalty Programs: Incentives and rewards for repeat customers to build long-term relationships.
• Sustainability Initiatives: Commitment to eco-friendly practices and products, appealing to environmentally conscious consumers.

Customer Segments

Tilly's serves distinct customer segments, including:

• Teenagers and Young Adults: Fashion-forward individuals seeking the latest trends.
• Parents: Looking for stylish and affordable clothing options for their children.
• Eco-Conscious Shoppers: Consumers who prefer sustainable and ethical fashion choices.

Channels

Tilly's utilizes multiple channels to reach and engage with its customers:

• E-commerce Website: A user-friendly online store offering a wide range of products and a convenient shopping experience.
• Physical Stores: Strategically located retail outlets for customers who prefer in-person shopping.
• Social Media: Active presence on platforms like Instagram, Facebook, and Twitter to engage with customers and promote products.
• Email Marketing: Personalized email campaigns to inform customers about new arrivals, promotions, and events.

Customer Relationships

Building and maintaining strong customer relationships is crucial for Tilly's:

• Personalized Service: Tailoring interactions based on customer preferences and purchase history.
• Community Engagement: Creating a sense of community through social media, events, and loyalty programs.
• Feedback Mechanisms: Encouraging customer feedback to continuously improve products and services.

Revenue Streams

Tilly's generates revenue through various streams:

• Product Sales: Primary revenue from selling apparel and accessories.
• Online Sales: Significant revenue from e-commerce transactions.
• In-Store Purchases: Revenue from physical retail locations.
• Loyalty Programs: Additional revenue through exclusive memberships and promotions.

Cost Structure

Understanding the cost structure is essential for Tilly's to manage expenses efficiently:

• Product Manufacturing: Costs associated with producing and sourcing goods.
• Marketing and Advertising: Expenses related to promoting the brand and products.
• Operational Costs: Overheads such as rent, utilities, and salaries.
• Technology Investments: Ongoing costs for maintaining and upgrading e-commerce platforms and IT infrastructure.

By analyzing Tilly's Business Model Canvas, we gain valuable insights into how the company operates and sustains its competitive advantage. This comprehensive overview helps in identifying areas of strength and opportunities for improvement, ensuring long-term success in the dynamic retail industry.

Which companies are the competitors of Tilly's?

Which Companies are the Competitors of Tilly's?

Tilly's, a prominent player in the retail apparel industry, faces stiff competition from a variety of companies, each offering unique styles and shopping experiences. Here are some of the main competitors of Tilly's:

1. PacSun

PacSun, short for Pacific Sunwear of California, Inc., is a well-known American retail clothing brand popular among young adults. Like Tilly's, PacSun focuses on casual wear inspired by the California lifestyle. They offer a wide range of products, including surf and skate clothing, accessories, and footwear.

2. Zumiez

Zumiez is another major competitor, specializing in apparel, footwear, equipment, and accessories for the skate and snow industry. They target a similar demographic as Tilly's, appealing to teens and young adults who are into action sports and streetwear fashion.

3. Urban Outfitters

Urban Outfitters offers a more eclectic mix of products, ranging from hip and trendy clothing to home décor and lifestyle items. While they cater to a broader audience, their fashion-forward and often edgy designs make them a formidable competitor in the youth market segment.

4. H&M

H&M, or Hennes & Mauritz, is a global fashion retailer known for its fast-fashion approach. They offer a wide array of stylish and affordable clothing for men, women, and children. H&M's ability to quickly adapt to fashion trends and offer them at competitive prices makes them a significant rival to Tilly's.

5. Forever 21

Forever 21 is another fast-fashion retailer targeting young adults. Known for its trendy and budget-friendly apparel, Forever 21 often competes directly with Tilly's for the same customer base. Their expansive product range and frequent new arrivals keep shoppers coming back.

6. American Eagle Outfitters

American Eagle Outfitters (AEO) focuses on casual and stylish apparel for teens and young adults. With a strong emphasis on denim, AEO offers a variety of clothing, accessories, and intimate wear. Their brand, Aerie, also competes in the intimate apparel and activewear segments.

7. Hollister Co.

Hollister Co., a division of Abercrombie & Fitch, is geared towards a younger demographic with its Southern California-inspired lifestyle brand. Hollister offers casual wear that often overlaps with the styles available at Tilly's, making them a direct competitor.

8. Hot Topic

Hot Topic specializes in music and pop culture-inspired fashion, accessories, and licensed merchandise. Their unique niche appeals to a subset of the youth market interested in alternative and fandom-related apparel, which can sometimes overlap with Tilly's customer base.

Conclusion

These competitors each bring their unique strengths to the retail market, making it essential for Tilly's to continuously innovate and adapt to stay ahead. By understanding their competitors and differentiating their offerings, Tilly's can maintain and grow its presence in the ever-evolving retail landscape.

Tilly's SWOT Analysis

Tilly's SWOT Analysis

In order to understand the strategic position of Tilly's, a comprehensive SWOT analysis is essential. This will help identify the internal strengths and weaknesses, as well as external opportunities and threats that the company faces. Here's a detailed look at each component:

Strengths

1. Strong Brand Recognition: Tilly's has established a solid brand presence in the retail industry, particularly among young adults and teenagers. This strong brand recognition helps attract a loyal customer base and enhances market penetration.

2. Diverse Product Range: The company offers a wide variety of products, including clothing, accessories, and shoes from popular brands. This diversification reduces dependency on any single product line and caters to different customer preferences.

3. Effective Omni-Channel Strategy: Tilly's has successfully integrated its online and offline channels, providing a seamless shopping experience. The combination of a robust e-commerce platform and physical stores enhances customer convenience and satisfaction.

4. Strategic Store Locations: Many of Tilly's physical stores are located in high-traffic areas such as shopping malls and urban centers. This strategic placement increases foot traffic and sales opportunities.

Weaknesses

1. Seasonal Dependency: Tilly's product lines are heavily influenced by seasonal trends. This dependency can lead to fluctuations in sales and profitability, particularly during off-peak seasons.

2. High Operating Costs: Maintaining a large number of physical stores incurs significant operating costs, including rent, utilities, and staff wages. These costs can impact the overall profitability, especially during economic downturns.

3. Limited International Presence: Tilly's primarily operates within the United States, which limits its exposure to international markets. This geographical limitation can restrict growth opportunities and make the company vulnerable to domestic market fluctuations.

4. Inventory Management: Handling a diverse range of products can lead to challenges in inventory management. Overstocking or understocking can result in increased costs and lost sales opportunities.

Opportunities

1. Expansion into International Markets: Tilly's can explore opportunities to expand its presence in international markets. This expansion can open up new revenue streams and reduce dependency on the domestic market.

2. Growth of E-commerce: With the increasing trend of online shopping, Tilly's can further enhance its e-commerce capabilities. Investing in digital marketing, optimizing the online shopping experience, and offering exclusive online products can drive sales growth.

3. Sustainable and Ethical Fashion: There is a growing consumer trend towards sustainable and ethically produced fashion. Tilly's can capitalize on this trend by introducing eco-friendly product lines and promoting ethical business practices.

4. Collaborations and Partnerships: Forming strategic partnerships with popular brands, influencers, and fashion designers can enhance Tilly's brand image and attract new customers. Collaborations can also lead to exclusive product offerings and marketing opportunities.

Threats

1. Intense Competition: The retail industry is highly competitive, with numerous established brands and new entrants vying for market share. Intense competition can lead to price wars, reduced profit margins, and customer attrition.

2. Economic Uncertainty: Economic downturns and fluctuations can impact consumer spending patterns. During periods of economic uncertainty, discretionary spending on fashion and accessories may decline, affecting Tilly's sales.

3. Changing Consumer Preferences: Rapid changes in fashion trends and consumer preferences can pose a threat to Tilly's. Failure to adapt to these changes can result in obsolete inventory and lost market relevance.

4. Supply Chain Disruptions: Tilly's relies on a complex global supply chain for its products. Any disruptions, such as natural disasters, political instability, or trade restrictions, can affect product availability and increase costs.

By analyzing these strengths, weaknesses, opportunities, and threats, Tilly's can develop strategic initiatives to leverage its advantages, address its challenges, and capitalize on emerging market trends.

Key Takeaways:

• Ownership of Tilly's: The retail chain Tilly's is a publicly traded company, meaning its ownership is distributed among shareholders who purchase its stock on the open market.

• Mission Statement: Tilly's mission is to provide a wide range of high-quality and trendy apparel, footwear, and accessories, appealing to young, fashion-forward consumers.

• Revenue Generation: Tilly's makes money primarily through the sale of branded clothing, shoes, and accessories both online and through its network of physical retail stores.

• Business Model Canvas: Tilly's business model focuses on customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure to strategically manage and grow its operations.

• Competitors and SWOT Analysis: Tilly's faces stiff competition from other popular retailers such as Zumiez, PacSun, and Urban Outfitters. Its SWOT analysis highlights strengths like strong brand recognition and extensive product range, weaknesses like susceptibility to fashion trends, opportunities including digital expansion, and threats such as intense market competition and economic downturns.

Conclusion

In conclusion, Tilly's has established itself as a prominent player in the retail industry, specializing in apparel, footwear, and accessories for the youth market. Owned by Tilly's, Inc., the company is driven by a clear mission statement that emphasizes providing an exceptional shopping experience and offering a diverse range of high-quality products that resonate with the lifestyle and culture of its target audience.

Tilly's generates revenue through multiple streams, including in-store sales, e-commerce, and exclusive brand partnerships, all of which contribute to its robust financial performance. The company's business model canvas reveals a strategic focus on customer relationships, key partnerships, and a strong value proposition, which collectively support its growth and operational efficiency.

Facing competition from both established retailers and emerging brands, Tilly's competes with the likes of PacSun, Zumiez, and Urban Outfitters. Despite the competitive landscape, Tilly's continues to leverage its strengths, such as a loyal customer base and a strong online presence, while also addressing challenges and opportunities identified in its SWOT analysis.

Overall, Tilly's remains well-positioned to navigate the dynamic retail environment, continuously adapting to market trends and consumer preferences. As it moves forward, the company's commitment to innovation and customer satisfaction will be crucial in maintaining its competitive edge and achieving long-term success.

FAQs

What are the 5 elements of SWOT analysis?

SWOT analysis is a strategic planning tool used to identify and analyze the Strengths, Weaknesses, Opportunities, and Threats related to a business or project. While it is typically referred to as having four elements, there is sometimes reference to a fifth element, which can vary depending on the context. Here are the primary four elements:

1. Strengths: Internal attributes and resources that support a successful outcome. These could include strong brand reputation, loyal customer base, unique technology, or skilled workforce.

2. Weaknesses: Internal factors that could hinder progress or success. These might be things like limited resources, poor location, lack of expertise, or weak online presence.

3. Opportunities: External conditions that could be exploited to the organization’s advantage. These can include market growth, lifestyle changes, technological advancements, or regulatory changes.

4. Threats: External factors that could cause trouble for the business or project. Examples include economic downturns, increased competition, changing consumer preferences, or new regulations.

The fifth element is less standardized and can vary, but some possibilities include:

1. Trends: This involves analyzing current trends in the market or industry that could impact the organization. It could be considered a subset of opportunities and threats but gives a more focused view on evolving patterns.

Alternatively, some frameworks may consider:

1. Objectives: Clearly defining the goals or objectives to provide context for the SWOT analysis. This ensures that the analysis is aligned with the overall strategy and purpose.

While the classic SWOT analysis focuses on the four main elements, incorporating a fifth element can provide additional context or depth to the analysis.

What are 5 examples of strength in SWOT analysis?

In a SWOT analysis, strengths are internal attributes of an organization that are helpful to achieving its objectives. Here are five examples of strengths:

1. Strong Brand Reputation: A well-established and trusted brand can attract customers, create loyalty, and allow premium pricing.

2. Skilled Workforce: Having a team of highly skilled and experienced employees can enhance productivity, innovation, and service quality.

3. Robust Financial Position: Strong financial health, including high profitability and substantial cash reserves, provides the ability to invest in new opportunities and weather economic downturns.

4. Innovative Products/Services: Offering unique or superior products and services can differentiate the company from competitors and meet customer needs more effectively.

5. Efficient Operations: Streamlined processes and efficient supply chain management can reduce costs, improve quality, and increase speed to market.

These strengths can provide a competitive advantage and help the organization achieve its strategic goals.

What is a SWOT analysis example?

A SWOT analysis is a strategic planning tool used to identify and evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a business or project. Below is an example of a SWOT analysis for a hypothetical technology startup called "Tech Innovators Inc."

SWOT Analysis for Tech Innovators Inc.

Strengths

1. Innovative Product Line: Tech Innovators Inc. offers a unique and cutting-edge product that addresses a significant market need.
2. Strong R&D Team: The company has a highly skilled research and development team capable of continuous innovation.
3. Customer Loyalty: High customer satisfaction and loyalty due to quality and reliable products.
4. Agility: Smaller size allows for faster decision-making and adaptability in the market.

Weaknesses

1. Limited Financial Resources: As a startup, the company has limited capital which may restrict growth and marketing efforts.
2. Brand Recognition: Lower brand recognition compared to established competitors in the industry.
3. Dependence on Key Personnel: Heavy reliance on a few key individuals for critical business operations.
4. Limited Distribution Channels: Currently, the distribution network is not as extensive as it needs to be for rapid expansion.

Opportunities

1. Market Growth: The technology sector is rapidly growing, providing ample opportunities for expansion.
2. Partnerships and Alliances: Potential to form strategic partnerships with larger firms or enter new markets through alliances.
3. Technological Advancements: Continuous advancements in technology can be leveraged to improve and diversify product offerings.
4. Global Expansion: Opportunities to enter international markets where demand for innovative technology solutions is increasing.

Threats

1. Intense Competition: The tech industry is highly competitive with many established players and new entrants.
2. Economic Downturns: Economic instability could affect consumer spending on technology products.
3. Regulatory Changes: Changes in regulations related to technology and data privacy could impact operations.
4. Cybersecurity Risks: Increased risk of cyber-attacks and data breaches which could harm the company's reputation and financial standing.

Strategic Takeaways

• Leverage Strengths: Focus on leveraging the strong R&D team to innovate and improve the product line. Utilize customer loyalty to drive word-of-mouth marketing.
• Address Weaknesses: Seek additional funding through investors or loans to overcome financial constraints. Increase brand recognition through targeted marketing campaigns.
• Capitalize on Opportunities: Explore partnerships and alliances to expand market presence. Invest in research to keep up with technological advancements.
• Mitigate Threats: Develop a robust cybersecurity plan to protect against data breaches. Monitor regulatory changes and adapt business practices accordingly.

This example demonstrates how a SWOT analysis can provide a comprehensive overview of a company's current position and help guide strategic decision-making.

What are the 4 areas of SWOT analysis explain?

SWOT analysis is a strategic planning tool used to identify and understand the Strengths, Weaknesses, Opportunities, and Threats related to a business or project. Here's a detailed explanation of each area:

1. Strengths:

   • Definition: Internal attributes and resources that support a successful outcome.
   • Examples: Strong brand reputation, skilled workforce, proprietary technology, financial resources, loyal customer base, superior product quality.
   • Purpose: Identifying strengths helps leverage them to achieve business objectives and gain a competitive advantage.

2. Weaknesses:

   • Definition: Internal factors that could impede an organization's success.
   • Examples: Poor location, outdated technology, high employee turnover, inadequate supply chain, limited marketing reach, financial instability.
   • Purpose: Recognizing weaknesses is crucial for understanding areas that need improvement and mitigating potential risks.

3. Opportunities:

   • Definition: External factors that the organization could exploit to its advantage.
   • Examples: Emerging markets, technological advancements, changes in consumer behavior, regulatory changes, economic trends, partnerships or alliances.
   • Purpose: Identifying opportunities allows a business to capitalize on external factors that can drive growth and expansion.

4. Threats:

   • Definition: External factors that could cause trouble for the business or project.
   • Examples: Increased competition, economic downturns, changing regulations, negative media coverage, supply chain disruptions, market saturation.
   • Purpose: Understanding threats helps in developing strategies to protect the business from potential external challenges.

By analyzing these four areas, businesses can develop strategies that align their strengths with opportunities, address weaknesses, and protect against threats. This comprehensive view aids in strategic planning and decision-making, ensuring a holistic approach to achieving business goals.