ECONOMICS

Economics

Economics

Introduction

Sharper Image Corporation is a London-based specialty retailing company. They are renowned for their initial, innovative, high-quality gadgets and gadgets that no one actually desires, but would like to have. They make goods in the classes of electronics, recreation, fitness, individual care, dwelling ware, journey, and toys. Sharper Image deals goods from three sources: Sharper Image Design propriety goods, personal mark goods, and labelled products. The propriety goods are studied and conceived by Sharper Image. Private mark goods are made by other manufactures, but characteristics and purposes are altered so they will be exclusive to Sharper Image. Branded goods are characteristic goods traded only in Sharper Image stores.

Sharper Image was based in 1977 and went public in 1987. It begun as a mail-order business, but subsequent opened its first shop in 1984. Sharper Image furthermore amplified to the Internet market by unfastening its location in 1999. It now has a total of 1,400 workers and about 100 shops all through the United States (Sharper Image 2001).

Strengths

Diversity

One of Sharper Images' strongest power is its varied procedures of trading their products. Sharper Image owns and functions 97 shops considered the United States. Usually established in shopping centres, Sharper Image shops develops many of traffic, producing in many of business. Their shops are their biggest source of earnings, accounting for approximately 60% of their total sales. The well renowned Sharper Image Catalog is their next largest source of income, conveying in 20% of sales. The catalog is dispatched monthly to over 7.9 million people. Their most latest sales conduit is their Internet world broad web location, which opened in July of 1999. Their Internet incomes are expanding quickly, they make up 14% of total sales (SHRP Reports Increase 2001).

Sharper Image Propriety Products

The prime person going by car of Sharper Image's sales is their Sharper Image Design goods for example the Ionic Breeze Air Purifier, their hands-free Car Cell Phone System, and their compact computer disc Shower Companion (Materna 2000). These goods are amidst their peak sellers. A large-scale benefit of these goods is that they are not traded in any other stores. So if clients desire these pieces, they should alignment from Sharper Image. Sharper Image wants that this will convey in more clients who will purchase other merchandise as well.

Fiscally Strong

Financially, Sharper Image Corp. is managing very well. Sales from every conduit are increasing. Same shop total sales increased from $38.2 million a year before to $43 million, an boost of 13%. Catalog sales for the time span increased 37% to $10.7 million from $7.8 million, and Internet sales increased 15% to $6.3 million from $5.5 million. They only have a meagre $2.2 million in liability, less than 3% of stockholders' equity (SHRP Reports Increase 2001).

Weaknesses

Trends in the direction of shrewd products

Sharper Image Corp. has identified a tendency of buyers buying more shrewd products. Because numerous of their goods are luxury pieces that aren't required by the clientele, they aren't trading well. Sharper Image is tackling this by entails of realignment of ...