Yelp SWOT Analysis analyzes, Yelp Inc. Yelp Inc. is one of the most prominent companies in its field. Yelp Inc. maintains its standing in the market by thoroughly analyzing and reviewing SWOT analysis. SWOT analysis is a highly dynamic process that requires coordination between different departments within the company, like marketing and operations, finance, information systems, and strategic planning.
Did you know? Yelp Is the #1 Site for Public Directories Online
In 2004 Yelp was founded in San Fransico by Jeremy Stoppelman and since then Yelpers have written over 47 million local reviews, making it perhaps the largest repository of its kind.. The company has three major components, the contributors who write reviews, the consumers who read them and the local businesses that they describe.
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 Yelp.
Yelp At A Glance – Yelp SWOT Analysis
Company: Yelp, Inc
Founders: Russel Simmons | Jeremy Stoppelman
Year of establishment: July 2004, San Francisco, California, United States
CEO: Jeremy Stoppelman
Headquarters: San Francisco, California, United States
Employees (Dec 2020): 3,900
Ticker Symbol: YELP
Annual Revenue (Dec 2020): $872.9 million
Profit net income (Dec 2020): $40.88 million
Products & Services: Local search | Business ratings and reviews | Online food delivery
Company Website: www.yelp.com
Competitors: Google | TripAdvisor | Yahoo | OpenTable | Foursquare | Meituan
Yelp SWOT Analysis – SWOT Analysis Of Yelp
SWOT Analysis Of Yelp analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Yelp 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 Yelp SWOT Analysis. Below Is The Detailed SWOT Analysis Of Yelp.
Yelp Strengths – Yelp SWOT Analysis
– A track record of success in the integration of complementary companies through mergers and acquisitions. It has successfully integrated a number of tech companies over the last few years in order to improve its efficiency and build a stable supply chain.
– A strong dealer community has created a culture of dealers and distributors in which dealers don’t just market the their products, but also train the sales staff to show the client how they can get the most benefit from the product.
– A high level of satisfaction with customers The company, with its dedicated department for managing customer relations has been able to reach an excellent level of satisfaction with its current customers as well as high brand loyalty among prospective customers.
– Strong distribution network the years, Yelp Inc. has built an effective distribution system which can cover the vast most of its market.
– Automating processes has resulted in consistency of quality for Yelp Inc. products and allows the company to grow and reduce its size based on the demands of the market.
– Excellent Returns on Capital Spending Yields Good Returns on Capital Investment Yelp Inc. is relatively adept at executing new initiatives and has generated excellent return on capital expenditure through creating fresh revenue streams.
– Highly skilled workforce thanks to successful educational and training programmes. Yelp Inc. is investing enormous resources in the developing and training its employees. This results in an employee pool that is not only skilled but also motivated to strive for more.
– Proven track record of creating new products and products that are innovative in their design.
Yelp’s Weaknesses – Yelp SWOT Analysis
– There are areas of inconsistency in the products that the company offers. This is a problem that could provide a competitor with a position on the market.
– The ratio of profitability and Net Contribution percentage from Yelp Inc. are below the industry standard.
– It is not very successful in merging firms with a different work culture. Like we said earlier, even though Yelp Inc. is successful in integrating small firms, it is not without its fair share of failures in integrating companies that have a different way of life.
– It is time to invest more in innovative technologies. With the size of the expansion and the different regions the company plans for expansion into Yelp Inc. needs to invest more money into technology that will allow them to integrate their processes across all of its locations. The investment currently in technology isn’t up to in line with the plans of the company.
– The structure of the organization is suitable for the current business model and limits expansion of adjacent product categories.
– The inventory of days is high in comparison to other companies – requiring the company increase its capital investment on the channels. This may affect the development of Yelp Inc.
– The company hasn’t been in a position to meet the challenges that are being faced by new players in the sector and has been losing market share in specific categories. Yelp Inc. has to create an internal feedback system that gets direct input from the sales staff on the ground to overcome these issues.
Yelp’s Opportunities – Yelp SWOT Analysis
– Recent trends in consumer’s behavior can create a new markets for Yelp Inc. . This presents a fantastic chance for the company to create new revenue streams , and broaden its product offerings as well.
– Environmental policies that are changing – These opportunities will result in an equal game for players in the market. This is a fantastic chance to Yelp Inc. to drive the benefits of its technological advancements and increase its sales in the emerging category of products.
– Lower inflation rate – The lower inflation rate provides more security to the market, permit credit with a lower rate to clients who are members of Yelp Inc..
– The new technology gives an opportunity for Yelp Inc. to practices an innovative pricing strategy in the current market. This will allow the company to keep its loyal customers by offering excellent service, and also attract new customers by offering other worthwhile offers.
– The steady flow of free cash gives the opportunity to invest in other product segments. If there is more money in the the bank the company is able to invest in the latest technologies, as well as new product categories. This could open up a door of potential in the future for Yelp Inc. in other product segments.
– New customers are coming from the online channels – In the last few years, the company has invested a huge amount of money in its online platform. This investment has led to the opening of a an entirely new channels for sales that is owned by Yelp Inc.. In the coming years, the company will benefit from this opportunity by understanding its customers better and addressing their needs with massive data-driven analytics.
– New markets are opening up due to a government agreement the adoption of the latest technology standards and the government’s freedom of trade agreements has given Yelp Inc. an opportunity to join a new market.
– The reduction in transportation costs because of lower shipping costs could lower the cost for Yelp Inc.’s products, thereby providing an opportunity for the business to either increase its profits or transfer its benefits to customers in order to increase market share.
Yelp’s Threats – Yelp SWOT Analysis
– Stable profitability – Intense competition has led to an increase in the number of companies in the industry over the past two years, which has put pressure on profitability, not just but also on sales overall.
– The demand for the high-profitable products is seasonal and any unpredictability during peak times could affect the financial performance of the business in the near to long-term.
– The laws governing liability in different countries differ in each country. Yelp Inc. may be at risk of liability claims in different jurisdictions because of changes to the rules in these markets.
– An increasing trend of isolationism within the American economy may trigger similar reactions from other governments which could negatively affect international sales.
– The shortage of skilled workers in certain global markets is an obstacle to the an increase in the profits of Yelp Inc. in those markets.
– Impersonation of counterfeit product and of low quality can be a danger against Yelp Inc.’s product, particularly in market that is emerging as well as the market with low-income.
– Because the company operates in a variety of countries, it is vulnerable to fluctuations in currency, especially due to the uncertain political climate of a many markets around the globe.
– The rising cost of raw materials could be danger to Yelp Inc. profitability.
Yelp SWOT Analysis Template
This is the SWOT report that Yelp has done. Please let us know if you have additional suggestions to add.
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