Sally Beauty Holdings Inc.’s Strategic Analysis

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Table of Contents

Sally Beauty Holdings Inc
SWOT Analysis
Table 1-Part 1
Table 2-Part 2
References

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 company’s 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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Sally Beauty Holdings Inc.’s Strategic Analysis

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