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FALABELLA

Falabella is a large South American department store chain owned by a Chilean conglomerate. It operates in retail in Chile, Peru, and Colombia, selling clothes, footwear, accessories, beauty products, and has additional business lines like banking. Its purpose is to simplify lives in Latin America through transforming shopping experiences, and it is focusing on growing its e-commerce. Key strengths include high customer satisfaction and strong cash flow, while weaknesses include challenges from new entrants and forecasting demand.

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0% found this document useful (0 votes)
41 views

FALABELLA

Falabella is a large South American department store chain owned by a Chilean conglomerate. It operates in retail in Chile, Peru, and Colombia, selling clothes, footwear, accessories, beauty products, and has additional business lines like banking. Its purpose is to simplify lives in Latin America through transforming shopping experiences, and it is focusing on growing its e-commerce. Key strengths include high customer satisfaction and strong cash flow, while weaknesses include challenges from new entrants and forecasting demand.

Uploaded by

zav.alvaro1
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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INDUSTRY CHARACTERISTICS

Is a multinational chain of departament stores owned by chilean multinational company S.A.C.I


Falabella. It is the largest South American department store.
Falabella is in the retail industry and they are in 3 countries: Chile, Peru and Colombia.
They have productos like Clothes, footwear, accesories, beauty products and other companies
within Falabella, like banks, travel agency and more.
The purpose of Falabella is simpliify the livess of people in Latin America, transforming their
shopping experience.
And now their focus is to grow more the E-commerce.
Annual
Report 2021
STRENGTHS WEAKNESSES
The company has not being
High level of customer able to tackle the challenges
satisfaction present by the new entrants in
Strong Free Cash Flow the segment
Ecommerce Not very good at product
subcategories demand forecasting leading to
Strong distribution higher rate of missed
opportunities compare to its
network
competitors.

OPORTUNITIES THREATS

Digital revolution and Rising raw material can


online retailing trend pose a threat to the
Growing market Falabella profitability
potencial Innovation and updating
Growth of the retail and of competition products
consumer sector
Major Competitive threat
Economic scale (large capacity & cost
advantage)
Differentiated products
Threat of new entrants R&D costs ( high capital)
Distribution channels
Government policies

Bargaining power of suppliers Competitve Bargaining power of buyers


Rivarly

High amount of suppliers vs less buyers Firms producing products (less amount)
(less control) Less probability to find a particular
Easy to switch suppliers Threat of substitute products product
Reasonable pricing due to buyer market Low income = pressure for low prices
power

There are very few substitutes that are


available and are also produced by low
profit earning industries
High quality product in a higher price
THANK YOU

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