Environmental Analysis of Limited Brands INC - Essay Example

The report is based on Limited Brands Inc, which is a clothing retail chain that specializes in products and beauty apparel mostly targeted at young women. The company's unique factors are that it stocks or sells only limited brands and hence the ‘limited’ on the company name. The second, unique factor about the company is that it deals mostly in cheap or budget products, and thirdly, its main client is young women. These three factors confirm that indeed the company is limited in various aspects that include, the market segment it targets, types of products it sells, and the brands it stocks.
The report will commence with a brief preview of the company after which it will commence with the analysis of the company from various angles. First, the company will conduct an internal analysis of the company to establish how internal factors affect or shape the company. Secondly, the report will focus on the external analysis that was carried out to establish how external factors influence the company and how the company has been forced to readjust or realign itself with the external factors. The third analysis of the company will focus on the financial aspect and in this regard, the report will analyze the company’s financial ratios. It is important to note that these analyses were aimed at establishing key problems that the business faces and hinder it from prospering further.
Findings from the analyses carried out showed that the company faced four critical problems that include dealing with poor brands that make the company less competitive in an industry revered for superior brands. The second problem that was established is a lack of resources, which hinder it from competing competitively in the market. The third problem was inadequate technology within the company, which means that it is unable to decrease costs and operate more efficiently. The fourth problem that was established was that the company presently suffers from positioning within the market, which reduces its ability to compete competitively.