Bed Bath & Beyond SWOT Analysis Analyzes, Bed Bath & Beyond Inc. is an American chain of domestic merchandise operating through retail stores. Its headquarters are based in New Jersey, United States and they specialize in home furnishings, domestics and merchandise as well as a wide assortment of products ranging from food, giftware, health and beauty care items. Since its founding in 1971, Bed Bath and Beyond has been the recommended destination for home goods, enticing shoppers with its affordable prices and its convenient availability. Its subsidiaries include Buy Buy Baby, and Christmas Tree Shops.
Did You Know?
Bed Bath & Beyond was once just casually known as Bed ‘n Bath. As per the name, it initially only sold items for the bedroom and bathroom.
Bed Bath and Beyond has catered to the needs of several consumers and as of 2020, the company has a total of 1,524 stores. As of 2020, Bed Bath and Beyond have employed approximately 62,000 people and have implemented requisite measures to ensure their safety amid the pandemic by closing all stores. Bed Bath and Beyond has received the Circle of Good Award for Outstanding Philanthropic Innovation for donating to 700 non-profit organizations worldwide.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by Bed Bath & Beyond.
Bed Bath & Beyond At A Glance – Bed Bath & Beyond SWOT Analysis
Company: Bed Bath & Beyond Inc.
Founders: Warren Eisenberg | Leonard Feinstein
Year of establishment: 1971
CEO: Mark J. Tritton
Headquarters: Union, New Jersey, United States
Employees (Dec 2020): 55,000
Ticker Symbol: BBBY
Annual Revenue (Dec 2020): US$11.6 Billion
Profit net income (Dec 2020): US$2.62 Billion
Products & Services: Domestic merchandise | Home furnishings | Bathroom, kitchen, and home decor
Company Website: www.bedbathandbeyond.com
Top Bed Bath & Beyond Competitors
Competitors: Pier 1 Imports | Crate & Barrel | West Elm | Anna’s Linens | At Home | Wayfair | Anthropologie | Soft Surroundings | The Home Depot | Wayfair | Williams-Sonoma | TJX | Kohl’s
Bed Bath & Beyond SWOT Analysis – SWOT Analysis Of Bed Bath & Beyond
SWOT Analysis Of Bed Bath & Beyond analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Bed Bath & Beyond SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Bed Bath & Beyond SWOT Analysis. Below Is The Detailed SWOT Analysis Of Bed Bath & Beyond.
Bed Bath & Beyond Strengths – Bed Bath & Beyond SWOT Analysis
- A strong distribution network – Through the years, Bed Bath & Beyond has established a solid distribution network that is able to reach the majority of its potential customers.
- Highly skilled workforce, thanks to effective programs of learning and training. Bed Bath & Beyond is investing massive resources in the training and developing its employees, resulting in an employee pool that is not just highly skilled but also motivated to strive for more.
- A Strong Brand Portfolio Through the years, Bed Bath & Beyond has invested in building a solid brand portfolio. An analysis using SWOT that is part of Bed Bath & Beyond just confirms this. This brand portfolio is very useful when an organization is looking to enter new categories of products.
- Reliable suppliers The company has a strong base of reliable suppliers of raw materials, allowing the company to get around any bottlenecks in the supply chain.
- A track record of success in merging and integrating companies through mergers & acquisitions. It has successfully merged a variety of technology firms over the last few years in order to simplify its operations and establish a solid supply chain.
- A strong dealer community has created a culture of distributors & dealers in which dealers don’t just market their products, but also invest in educating sales personnel to inform the customer how to get the most value from the product.
- Solid Free Cash Flow Bed Bath & Beyond has high free cash flow which provides the hands of the company to develop new ventures.
- Automating processes have ensured consistency in the quality of Bed Bath & Beyond products and enabled the business to grow and down according to the needs of the market.
Bed Bath & Beyond Weaknesses – Bed Bath & Beyond SWOT Analysis
- It is not very successful in the integration of firms with different cultures. In the past, although Bed Bath & Beyond is effective in integrating small companies it is not without its fair share of failures when it comes to merging companies that have a different way of life.
- The amount invested into Research and Development is below the most rapidly growing companies in the market. While Bed Bath & Beyond is spending more than the industry average for Research and Development, it hasn’t been able to keep pace with the most prominent companies in regards to the pace of innovation. It is portrayed as an established business that is eager to release products that are based on the tested characteristics that are available on the market.
- A limited success outside of the core business Bed Bath & Beyond is one of the top companies in its field, it has encountered challenges expanding into other product categories in its current business model.
- The way in which the product was promoted left many things to be wanted. While the product is an excellent product in terms of sales but its positioning and distinctive selling point isn’t well identified, which could result in being targeted by competitors.
- There are areas of inconsistency in the products offered by the company. The lack of variety could allow a new competitor to gain advantage on the market.
- The company is not in a position to meet the challenges presented by new competitors in the market and has also lost a small market share in small-scale categories. Bed Bath & Beyond has developed an internal feedback mechanism directly from the sales team on ground in order to overcome these issues.
- The ratio of profitability and Net Contribution percentage for Bed Bath & Beyond are lower than the industry average.
Bed Bath & Beyond Opportunities – Bed Bath & Beyond SWOT Analysis
- The new technology gives an opportunity for Bed Bath & Beyond to implement a differentiated pricing strategies in the current market. It will help the business to retain its loyal customers with excellent service and attract new customers with other propositions that are value-based.
- Government green drive also offers the door for purchasing Bed Bath & Beyond products through the state and Federal government contractor.
- A steady flow of cash provides the opportunity to invest in other product segments. When there’s more cash at the bank, the business is able to invest in the latest technologies, as well as new product categories. This will open a new window of potential for Bed Bath & Beyond across other product categories.
- New markets are opening up through government agreements – the introduction of a new technology standards and a accord on free trade has given Bed Bath & Beyond an chance to gain entry into an emerging market.
- Lower inflation rate: The lower inflation rate will bring stability to the market and permit credit with a lower rate to clients who shop at Bed Bath & Beyond.
- Lowering the cost of transportation as a result of reduced shipping costs could lower the price of bed bath & Beyond’s products , thereby offering a chance to the business to improve its profit margins or to pass the savings to customers in order to increase market share.
- New customers come from the online channels – In the past few years , the company has invested a huge amount of money into its online platform. This investment has led to the opening of a an entirely new sales channel for Bed Bath & Beyond. Over the next few years the company can capitalize on this opportunity by understanding the needs of its customers better and meeting their needs with massive data-driven analytics.
- Recent trends in consumer’s behavior could create a new opportunities for consumers of Bed Bath & Beyond . It is an excellent opportunity for the company to create new income streams and expand into different product lines as well.
Bed Bath & Beyond Threats – Bed Bath & Beyond SWOT Analysis
- The imitation of the fake and inferior product could be a risk for bed bath & Beyond’s products especially in emerging markets as well as markets with low income.
- Pay increases, especially those like $15 an hour, and rising prices in China can put a significant stress on the profitability of Bed Bath & Beyond
- The rising cost of raw materials could be an issue for Bed Bath & Beyond profitability.
- Innovative technologies developed by a market disruptor or competitor could pose a major risk to the industry in the near to medium-term future.
- New environmental regulations in the Paris accord (2016) could pose the threat to some existing product categories .
- The demand for the high-profitable products is seasonal and any unpredictability during peak times could have an impact on the profits of the business in the short – to medium-term.
- An increasing trend of isolationism within the American economy may trigger similar responses from other governments which could negatively affect international sales.
- The company may be subject to lawsuits in a variety of markets, due to various laws and constant changes regarding the quality of products sold in those markets.
This is the SWOT report that Bed Bath & Beyond has done. Please let us know if you have additional suggestions to add.
Let us know What do you think? Did you find the article interesting?
Write about your experiences and thoughts in the comments below.