External and Internal Environment Analysis

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External and Internal Environmental Analysis
DSW is the leading footwear specialty retailer in the United States operating 305 shoe stores in 39 states as of January 30, 2010. The shoe warehouse offers a wide assortment of better-branded dress, casual and athletic footwear for women and men, as well as assessories. The company’s main focus is to create a distinctive shopping experience that satisfies both the rational and emotional needs of DSW customers by offering a vast, exciting assortment of in-season styles combined with the convenience and value they desire (DSW, Inc. 2009 Annual Report).
External Environmental Factor in the Remote, Industry, and External Operating Environments
Part of DSW’s external environment factor in the remote is their economic factor. DSW is in a leading marketing position that is driven by their competitive strengths, the breadth (heart) of their branded products, their distinctive and convenient store layouts, the value proposition they offer to their customers, and their financial strength (DSW, Inc. 2009 Annual Report).
DSW stores and dsw.com sell a large assortment of merchandise. They purchase shoes and athletic footwear from over 400 domestic and foreign vendors. DSW’s growth is attributable to their operating model and management’s focus on store-level profitability and economic payback. Over the five fiscal years ending in January 30, 2010, their net sales grew at a rate of 11%. They have also generated a positive operating cash flow and operating results. DSW has generated a level of cash and investments amounting to $289 million, and they believe that this is sufficient to maintain their ongoing operations, support seasonal working capital requirements, and fund capital expenditures related to projected business growth (DSW, Inc. 2009 Annual Report).
Internal Strengths and Weaknesses of DSW
DSW has strengths within the…...

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