Sally Beauty Holdings Inc.s Strategic Analysis

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Sally Beauty Holdings Inc.s Strategic Analysis Report
Exclusively available on IvyPanda
Updated: Jul 2nd, 2022
Sally Beauty Holdings Inc
SWOT Analysis
Table 1-Part 1
Table 2-Part 2
References
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Sally Beauty Holdings Inc
Sally Beauty Holdings Inc. (Sally Beauty) is engaged in the retail and distribution of professional beauty products. The company is international and operates primarily in North America, South America and Europe. The organization is active through two segments: Beauty Systems Group (BSG) and Sally Beauty Supply (Sally Beauty Holdings, Inc., n. d.). Sally Beauty Supply is represented by a chain of retail stores offering professional products to customers in North America and parts of South America and Europe. BSG is a full-fledged distributor of beauty products which offer products directly to salons and professional stores primarily in North America and Europe. Thus, the company operates through company-operated stores, distributors, direct sales teams, franchise stores and e-commerce portals (Company profile, 2020, p. 3). Sally Beauty Holdings holds a strong position among competitors in the beauty market. Considering the business processes involved in the activities of such a company is especially interesting for me as a woman who has been using beauty products for entire life.

SWOT Analysis
SWOT analysis is a vital tool for strategic management and planning. This tool helps managers identify the critical organizational and environmental factors for building a companys activity strategy. This tool includes an assessment of strengths and weaknesses as internal factors, as well as opportunities and threats as external factors. The strengths of the companies presented in Table 1 are dominant in relation to the weaknesses, which makes it possible to build an effective strategy on their basis. For example, despite the increased inventory turnover ratio, which leads to high inventory carrying costs, Sally Beauty increases operational performance (Company profile, 2020). This fact has a positive effect on the future use of the opportunities to expand on the haircare market and overcome the threat of competitiveness (Company profile, n. d.). Thus, SWOT analysis identifies a generally positive basis for building a development and growth strategy for a company.

Table 1-Part 1
SWOT: Strengths and Weakness of Sally Beauty Holdings Inc.

STRENGTHS WEAKNESSES
Robust Store Network
Liquidity Position
Operational Performance Revenue Decline
Inventory Turnover Ratio
Table 2-Part 2
SWOT: Opportunities and Threats for Sally Beauty Holdings Inc.

OPPORTUNITIES THREATS
Global Haircare Market
Online Retail Market in the US
Consumer Spending in the US Labor Costs in the US
Intense Competition
Foreign Exchange Risks
References
Company profile: Sally Beauty Holdings, Inc. (2020). MarketLine.

Sally Beauty Holdings, Inc. (n. d.). Reuters. Web.

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Paper Details
Reading time 2 min
Type Report
Pages 1
Words 381
Subjects Business Company Analysis
Language
English
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