SWOT Analysis for Banana Republic: How to Use Strengths, Weaknesses, Opportunities, and Threats for Business Success

Strengths 

1. A strong brand with a positive reputations that has been in existence for over four decades. Having a strong brand makes marketing easier since the targeted market is already familiar with the brand name (Abraham, 2012). 

2. An innovative and talented human resource base. The company has invested heavily in human talent, more in online marketing. 

3. A strong financial based supported by a powerful parent company. Banana Republic is wholly owned by Gap Inc., a powerful international company with large pecuniary resources. 

4. Wide-ranging physical presence in the market: with over 700 branches both locally and internationally, Banana Republic is large enough to be visible to potential customers which creates an element of trust (Gap Inc., 2018). 

5. An innovative marketing strategy that the target market resonates to: Banana Republic has been able to thrive even when the fashion industry did not, mainly because its target market resonates with its social media driven marketing campaign (Jaekel, 2017). 

6. Access to premium products at negotiable prices: being part of Gap Inc. connects Banana Republic to a major player who can make massive orders from major apparel manufactures thus creating a propensity for negotiable and lower prices, hence higher profits. 

7. Positive organizational history: a good story is important in marketing. Banana Republic a good story about how the company was commenced by a couple armed with a little capital and a good idea (Schawbel, 2012). The good idea grew the company into an international player. This story works well for Banana Republic marketing. 

8. A loyal local and international customer base: due to the good company history and a positive reputation, Banana Republic has a loyal customer base, willing to buy products purely because Banana Republic is selling them. 

Weaknesses 

1. Limited International exposure: almost 90% of all Banana Republic outlets are in the United States which leaves almost 30 other countries sharing just over 10% of the total number of stores. Entering an international market is expensive, yet Banana Republic has invested to enter all these markets then underinvested in them, focusing most of its stores in the USA. 

2. A limited number of outlets: After 40 years of operation, Banana Republic has only just over 600 outlets spread across several countries and all five continents. Based on the area of operation, the outlets are relatively few thus limiting the company’s physical footprint in the market. 

3. The Banana Republic brand is limited by parent company encumbrances. Being a wholly owned subsidiary of another fashion retailer limits the decision-making capabilities of the company as it has to run its decisions through the board or representative of Gap Inc. Lack of flexibility in decision-making can adversely affect marketing capabilities. 

3. Overreliance on third parties. As a retailer, Banana Republic has limited control of the market and has to rely on the customers and also manufacturers, resulting in a marketing complication. The company has to rely on t he designs made by the manufacturers to meet the ever-changing demands of the customers, as opposed to marketers who also manufacture thus can react effectively and efficiently to market demands. 

Opportunities. 

1. Capacity to expand into the international market: Banana republic has already entered into tens of local markets in different countries. It is thus in a position to easily expand into this local markets by creating more outlets. Having experience and footprints in a local market exponentially ease the process of adding another outlet as opposed to a fresh entry. 

2. Expanding into the online market: Traditional retailers are gradually being replaced by online retailers hence the need to adjust into the new online market niche. As major social media marketer, Banana Republic is poised to be able to adapt and thrive as an online retailer (Jaekel, 2017). 

3. Venturing into fashion manufacturing: due inter alia to its partnership with Gap Inc. a massive international retailer, Banana Republic has the financial capacity to venture into fashion manufacturing. 

Threats 

1. Replacement by online retailers: Banana Republic has modeled itself as an online marketer thus its target market is the younger generation. The company thus faces stiff competition from online retailers, key among them being Amazon Inc. (Knight, 2017). 

2. As a retailer, the originality and quality of the products sold depend on third parties which expose Banana Republic to potential lawsuits from other manufacturers for intellectual rights infringements and customers due to the quality of products (Abraham, 2012). 

3. Focusing on only one national market exposes Banana Republic to the vagaries of economic fluctuations within that market. 

4. Geopolitical concerns based on international relations: The brewing international trade war between the USA and China, EU, Canada, and Mexico might adversely affect international players like Banana Republic.