catch.com.au SWOT and PESTLE Analysis

Strength

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Weakness

1. The company is still unprofitable despite operating for 16 years: Catch.com.au is one of the leading e-commerce companies in Australia. The company was setup in 2006. The online marketplace is all set to record another period of loss in its business operations in the competitive e-commerce environment. The business was acquired by Wesfarmers in 2019 for $230 million. The total losses of the company are due for before tax (EBT) loss of $43-45 million in the six months to 31 December 2021. This is only $1 million shy of its losses for the entire FY21 calendar year. The company had processed around $973 million transactions in FY 2021 due to a boom in the e-commerce segment driven by covid-19. Wesfarmers, the parent company of the business claimed that the latest loss reflected the company’s continued investment in the Catch's team, technology, marketing and capabilities to support long-term growth. However, a sharp drop in gross transaction volume (GTV) growth also contributed to the losses which changed from 41 per cent in FY21 to just 1 per cent. The remaining section under "Weakness" is available only in the 'Complete Report' on purchase.

Opportunity

1. Implement digitalization in operations to build a strong supply chain: Catch.com.au is one of the leading e-commerce businesses in Australia and is operating since 2006 through a single fulfilment centre based in Victoria. Due to surging Australian e-commerce demand, the company is opening a new fulfilment centre in Sydney in Q1 2022. This new fulfilment centre is a part of the company’s long-term strategy and will enable Catch to serve customers more quickly and efficiently. Catch has selected Blue Yonder as its digital partner to provide cloud-based warehouse management system (WMS) and labor management solution to support its high-volume e-commerce business. This digital transformation solution will help the company to improve its customer services through increase in efficiency. It will also reduce the cost for the company and will help in driving employee engagement. The company should focus on improving its supply chain to drive growth and increase efficiency. This can be achieved through digital transformation. The remaining section under "Opportunity" is available only in the 'Complete Report' on purchase.

Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Sustainable packaging is becoming a key differentiator for e-commerce businesses: Packaging can give customers a critical first impression of an ecommerce business, and thus plays an important role in consumer perceptions of sustainability. Consumers are becoming more environmentally conscious, and they view packaging as a barometer of sustainability, which will influence their purchasing habits and brand loyalty. Given that receiving a package through the mail can be a customer's first experience of a brand, green packaging has become an important part of the online retail strategy for ecommerce businesses. As a result, ecommerce-focused brands' value propositions are increasingly focusing on sustainability, with conventional hallmarks of quality being replaced by practicality and a substantially lower carbon footprint. Catch is also including sustainability in its operations and should continue to make the packaging more sustainable so as to attract consumers. The remaining section under "Environmental" is available only in the 'Complete Report' on purchase.