Answered Essay: External Environmental Analysis for The Children's Place Industry analysis •Competitive

External Environmental Analysis for The Children’s Place Industry analysis •Competitive analysis: [Use the company’s closest competitors plus the selected company.] •Techniques Analysis: PESTEL, Five Forces, OT from SWOT, EFE, and CPM. •Trends: Discuss trends significant to the industry and company and discuss key areas of uncertainty related to trends or events that potentially could impact the company’s strategy.

Expert Answer

Answer:-

The Children’s Place is largest pure-play children’s speciality apparel in Northern America.

The Company designs, contracts to manufacture, sells at retail and wholesale, and license its brand to sell its brand product.

The Company has:-

  • As of 2017, 1029 stores in North America, Canada, Puerto Rico
  • Online stores by company’s name
  • 150 international points of distribution open and operated by its 6 partners in 17 countries.

CPM:-

The Risk, Uncertainty associated with the company is:-

  1. Company is actually in a retail store business covering only one market segment that is children but it is has competition with stores addressing many other market segment example of such stores are Walmart, Sears, Target, Coach, etc. This truly impacting market share of the company’s retail business.
  2. The company is also undergoing a exercise of fleet optimisation and reducing it’s stores of around 300 till 2020 definately it is making another concern for point of discussion with point 1. Though optimisation will help but there is impact associated with it till it’s value is realised.
  3. The company is dependent on suppliers from various global location, any defficiency from its suppliers will affect its revenue and its brand value.
  4. The company sells brand licenses to certain business stores whose inappropriate brand handling or utilisation may impact the overall brand.
  5. Company is in concern of not able to offset cost increase by value engineering or price increases.
  6. The consumer spending pattern is concern and driver to company’s business is concern due to slowing economy across America and various other countries it operates.
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