Diesel SWOT Analysis, Competitors & USP

SWOT analysis of Diesel analyses the brand by its strengths, weaknesses, opportunities & threats. In Diesel SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Diesel to benchmark its business & performance as compared to the competitors. Diesel is one of the leading brands in the lifestyle and retail sector.

The article below lists the Diesel SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Diesel SWOT Analysis:

SWOT Analysis of Diesel

For Diesel, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

Diesel Strengths

The strengths of Diesel looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Diesel :

1.A complete lifestyle brand known for its luxury and pret-a-porter clothing aimed at young adult market
2. The exclusiveness strategy which saw them intentionally shrink from 10000 points of sale 5000 points of sale
3. Strong advertising strategy which sees them building stories around pictures.
4. One of the first clothing companies to have a major presence on the internet since 1995

5.The diversification into other merchandise like sunglasses ,watches, perfumes, footwear  makes it a complete lifestyle brand
6. Has over 2500 employees serving in 80 countries
7. Apart from clothing, it offers watches, footwear, perfumes etc

Diesel Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Diesel SWOT Analysis:

1.Their main product Diesel jeans is expensive and only available to a select few
2.Majority of sales revenues come from designer jeans. A slight dip in the demand of it may see a major drop in sales
3.Replica products and fake imitation affects brand image

Diesel Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Diesel SWOT Analysis:

1. With rising concern in eco-friendliness of products Diesel can respond to this concern with promotion campaigns to instill trust
2. Diesel can tap emerging retail markets like India and Africa to make the most of the unsaturated markets there
3. Outsourcing some divisions in some countries may help maintain economies of scale

Diesel Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Diesel are as mentioned:

1. The highly fragmented fashion industry amounts to low consumer loyalty related to a particular brand due low switching cost and high bargaining power
2. The trade barriers which cause fluctuations in currency denominations may cause losses when it comes to revenues
3.The emergence of many designers in the jeans segment may cause a serious threat to their core product

Diesel Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 3 competitors of Diesel:

1. Giorgio Armani
2.Chip and Pepper
3. Levis

Hence this concludes the Diesel SWOT analysis.

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About Diesel

Diesel Overview
Parent Company	Diesel S.p.A.
Category	Apparel and Accessories
Sector	Lifestyle and Retail
Tagline/ Slogan	For Successful Living
USP	Complete lifestyle brand
Diesel STP
Segmentation	Young men , women and children who are very fashion conscious
Target Market	Urban upper-middle and upper class
Positioning	A complete fashionable lifestyle brand

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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