Opportunities and Threats

Date: 2015-10-07; view: 469.

SWOT Analysis

Opportunities

TTIPS (Transatlantic Trade and Investment Partnership) – Since the last year, Europe and the United States are negotiating an agreement for free-trade between the two areas. This agreement could give the opportunity of better conditions in import of raw materials (Tod's acquires in part leather from U.S.), and export of goods.

Euro depreciation – Opportunity of an increase in foreign sales in those countries where currencies have appreciated against Euro (e.g. United States, Middle East. Far East).

Growth of the China population – Opportunity of increasing sales in the geographical area in which Tod's is opening a lot of new DOS.

Threats

Middle East instability – Threat of a negative impact on sales in the Middle East Area, and concern on companies operations in those regions, due to the results of Arabic Spring and ISIS phenomenon.

Russia embargo - Threat of a negative impact on sales, in the case of a prolongation of the embargo that Europe and United States have imposed to Russia because of its occupation of some Ukrainian regions.

Zero economic growth in European area – In consideration to the fact that Europe represents the 40% of the Tod's' total revenues, in the case of a prolongation of the actual situation of stagnation in Europe, there will be a risk of a negative impact on sales.