A SWOT analysis is defined as “A distillation of the findings of the internal and external audits which draws attention to the critical organisational strengths and weaknesses and the opportunities and threats facing the company.” (Kotler et al 2005). A SWOT analysis identifies the strengths, weaknesses, opportunities and threats of a business in the market. By identifying these factors, it allows for a company to asses what is working, what isn’t and what opportunities they could exploit to improve the business. The table below shows the SWOT analysis for Ariat.
| Strengths Cover lots of disciplines– Ariat offers products for lots of equine disciplines including show jumping, dressage and Western. High quality products – The products that Ariat produce are long lasting and made of high quality materials. International company– Ariat is sold worldwide, distributing to 42 different countries. Products are sold online and in many equestrian stores. High brand awareness– Ariat is a very well-known brand within the equine industry due to is high quality and fashionable products. | Opportunities Products outside of equine – Ariat has the potential to expand out of the equine market by producing high quality clothing and footwear for everyday and fashion clothing. Sponsorship for events- There is potential to increase awareness brand image, and therefore sales, by sponsoring more events, competitive riders and magazines etc. Own stores- Ariat currently only sell online or through other equine suppliers and tack shops. If they were to have their own shop and stalls at events they could showcase a bigger range of their products. |
| Weaknesses Expensive– Ariat’s products are expensive and their customers tend to be wealthy. This means that your everyday rider may not be able to afford Ariat products. This could have potential for them to expand into lower price products to target this customer base. Limited range of products- Ariat has a very limited number of products for children, and although they offer western products this is still a very small percent of the overall products they advertise. No customized products- Other companies offer customized products such as em braided jackets and custom-made boots, this could be a reason a customer decides to shop elsewhere. Ariat could expand into this market to appeal to this audience. | Threats Competitors– Ariat has a lot of close competitors in the equine industry such as Holland Cooper, however there are also competitors that offer similar products at cheaper prices, this could mean they lose custom of less wealthy customers in the market. Politics (BREXIT)- Ariat supplies to 42 different countries including Europe. The changing tariff rates caused by Brexit could affect the amount of trade from the UK and Europe. Vegan- A lot of Ariat’s products are made from leather. With a lot more people becoming vegan Ariat could see a fall in sales of their leather products such as riding boots. According to a Survey done by The Vegan Society in 2018, they found that the number of vegans’s in Britain had doubled twice in 4 years. |
References:
Ariat, https://www.ariat.com/gb/en/home?gclid=Cj0KCQjw3qzzBRDnARIsAECmryroAfH89Xb_qoO0emN_qZ1ynP12EtZ4b8TpvrtTDLTIqQcgVWCoM4QaAiUUEALw_wcB (Accessed 10th March 2020)
Key facts, The Vegan Society, https://www.vegansociety.com/about-us/further-information/key-facts, (Accessed 10th March 2020)
Kotler et al 2005
Use of SWOT analysis, Queensland Government, https://www.business.qld.gov.au/starting-business/planning/market-customer-research/swot-analysis/uses (Accessed 10th March 2020)
ariatmarketing.business.blog 