Analysis of Party City Research Paper
Analysis, Party, City, Research, Paper
As we all know party city has been one of the best companies in American to sell costumes, party items, and as well as balloons. Party city was one of the top tier companies in the industry for selling items that were party related or for a holiday, a great example would be Halloween. 2019 party city announced that it will be shutting down 55 stores due to issue that the company is facing.
With party city closing 55 stores this would triple the amount of stores the company typically closing in a given year. Lately the company has been dealing with a helium shortage which is one of the main reasons why the company is closing so many stores. Many people may not know but helium is the world second most abundant element in the galaxy.
Party city was really big on selling balloons but since the short occurred they have to find an alternative route to take in order to keep the company alive. Most of the profit party city was receiving were from balloons. Helium was bringing customers into the store, but since the crisis customers had to find elsewhere for party goods.
Helium may be the cause of party city failure but if they were to find a source of helium it would still be hard for them to reentry the market again. We have companies now that have surpassed party city. A great an example would be wal mart and amazon.
The most important issue for party city to tackle would be finding a way to move from selling balloons. The company cannot just sit around and wait for helium to appear they must find new ways to attract consumers. Helium was the best option for company years ago, but times have changed, party city must develop new products along with a great marketing strategy.
I think the company should start looking into a long-term goal which would develop new products set a time frame for how long you want the product to be on the market. This day on age you must be able to adapt to the environment around you. Consumers are always looking the hottest product that is out so being able to develop new products for your target market will separate you from others. Party city must adapt in order to stay alive; it is time for a different tactic.
Coronavirus occurred sometime around the end of last 2019 which has affected the entire world. This virus emerged in china, and from there it has began to spread across the world causing the entire world to shut down. With no vaccine ready we do not know when the country will be back up and running.
This is something our nation never experienced besides 9/11 which was a horrible incident that occurred. 9/11 did not shut down the world this virus is causing companies and people to lose out on money. Party city is already in a slump but adding on the virus to the world this will set the company back even further.
With no time limit to a vaccine party city must develop a business plan and execute the plan the best way as possible. The world we live in is on a standstill, until we can figure out the proper vaccine. Party city will have to wait it out until the country reopens. Party city should take this to their advantage to discuss the idea of developing new products to place on the market
External Factor Evaluation
External Strategic Factor Weight Rating Weighted Score Comments OPPORTUNITIES Mobile media used for advertisement 0.1 3 0.3 There is an opportunity for the company to advertise their products now by using the mobile media in order to target its customers. Trends of the people targeted 0.11 4 0.44 The company can target the market by various aspects most commonly by knowing the trends of the people in the whole world especially in the North America. Digital media in use 0.03 2 0.06 Digital media provides the company better transactional experience than that of the television or print media. Product innovation 0.12 3 0.36 The company can improve its profitability ratio by enhancing the product line with innovative ideas. Higher & appropriate product 0.03 4 0.12 The higher technology can be used by the company in order to improve the sale due to higher and appropriate productions. Psychological handling of customers 0.04 2 0.08 The company can target its customers psychologically and grasp their attention and interest towards their respective products. Product Development 0.14 2 0.28 The development of the product line can be improved by emphasizing and focusing on the variations in the fashion and the company had its joint venture with the Stella McCartney who establishes the concept branded wears among the females. Involvement of the company n worldwide affairs 0.05 3 0.15 The involvement of the company in the world wide affairs most probably like Olympics, world cups etc can improve the sales of the company. THREATS Economic downturn
0.12 4 0.48 The company is already in a hole as we speak so with coronavirus in affect this will set party city back even more because business are being shutdown Helium shortage 0.06 3 0.18 The rise in the oil pricing is also the factor of decline because of which price for production also increases as well as the transportation expenses. Population decreasing by 10% in the last 3 years in your area 0.05 3 0.15 The company has very weak distribution channels as compared to its competitors that are puma and nike and it has diverse relationship with the many of the outlet brands. No major competitive edge 0.07 2 0.14 For the company Adidas, it has no competitive advantages to boost its sales. Low in revenue generation 0.07 3 0.21 The performance of the Adidas Company is not much efficient as compared to Nike as its employees revenues are 39 % better than Adidas. Affordability 0.04 3 0.12 The products of the company are very common now and their original products are very expensive that atre not affordable by most of the people. Competitors action 0.03 3 0.09 The strongest competitor of the company that is nike is putting more emphasize on the product line relating the footwear which is helpful in enhancing the market. Negative branding and illegal activities 0.02 3 0.06 The illegal activities performed by different sorts of brands are making negative image and impact on the company. Total Weighted Score 1 2.75