internal strengths lntemal Weaknesses external opportunities External Threats Merchandising Strong dealer community - Economic Stable free cash flow . Rising pay level It has built a culture Background provides opportunities to especially movements among distributor 8: . The company has invest in adjacent product such as $15 an hour dealers where the dealers not being able to segments. With more cash and increasing prices not only promote tackle the in bank the company can in the China can lead companys products but challenges present invest in new technologies to serious pressure on also invest in training the by the new entrants as well as in new products profitability of The sales team to explain to in the segment and segments. This should open Children's Place, Inc. the customer how he/she has lost small market a window of opportunity for can extract the maximum share in the niche The Children's Place, Inc. in benefits out of the categories. The other product categories Products Children's Place. Inc. has to build internal feedback mechanism directly from sales team on ground to counter these challenges. Marketing . Strong Brand Consumer - New trends in the . Changing consumer Portfolio - Over the Trends consumer behavior years The Children's Place, Inc. has invested in building a strong brand portfolio. The SWOT analysis of The Children's Place, Inc. just underlines this fact. This brand portfolio can be extremely useful if the organization wants to expand into new product categories. - The marketing of the products left a lot to be desired. Even though the product is a success in terms of sale but its positioning and unique selling proposition is not clearly dened which can lead to the attacks in this segment from the competitors. can open up new market for the The Children's Place. Inc. . It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too. buying behavior from online channel could be a threat to the existing physical infrastructure driven supply chain Rising pay level especially movements such as $15 an hour and increasing prices in the China can lead to serious pressure on profitability of The Children's Place, |nc.mode|. Financial Management] Operational - Strong Free Cash Flow - The Children's Place, Inc. has strong free cash flows that provide resources in the hand of the company to expand into new projects. Reliable suppliers - It has a strong base of reliable supplier of raw material thus enabling the Company to overcome any supply chain bottlenecks - The profitability ratio and Net Contribution % of The Children's Place, Inc. are below the industry average. - Organization structure is only compatible with present business model thus limiting expansion in adiacent product segments. Industry Trends Competitors Opening up of new markets because of government agreement - the adoption of new technology standard and government free trade agreement has provided The Children's Place. Inc. an opportunity to enter a new emerging market - Decreasing cost of transportation because of lower shipping prices can also bring down the cost of The Children's Place, lnc.'s products thus providing an opportunity to the company - either to boost its profitability or pass on the benefits to the customers to gain market share. - Growing strengths of local distributors also presents a threat in some markets as the competition is paying higher margins to the local distributors. - Intense competition - Stable profitability has increased the number of players in the industry over last two years which has put downward pressure on not only profitability but also on overall sales