COMPANY PROFILE -Overstock
Business Sector :Online Retail
Operating Geography :United States, North America, Global
About Overstock :
Overstock.com, Inc. is an American online retailer, headquartered in Midvale, Utah. The company was founded by Patrick M. Bryne in 1999 and initially sold exclusively surplus and returned merchandised on an online e-commerce marketplace, liquidating the inventories of almost 18 failed dot-com companies at below wholesale prices. Currently, the company sells home décor, furniture, bedding and many other merchandise like jewelry, designer accessories, sportswear, etc. In early 2011, the business started rebranding to “O.co”, to simplify and unify its international operations but after few months this effort was suspended, citing consumer confusion over the new name. In 2021, the company has approximately 1750 employees in more than 90 countries. Overstock is recognized as one of the most trustworthy retail companies in the U.S by many industry leaders and influencers, and ranks high for both customer and employee satisfaction. In 2020, the company was acknowledged in the seventh annual Loyalty360 Awards for its innovation in technology and for its employee engagement with customers and associates throughout the company.
Overstock.com, Inc.’s unique selling proposition or USP lies in providing the best quality furniture at an affordable price. Overstock.com, Inc.’s vision statement reads, ”Overstock makes beautiful & comfortable homes accessible by helping customers easily & confidently find just what they want for less.”
Overstock Revenue :
$ 2,550 million - FY ending 31st December, 2020 (y-o-y growth 75%)
$ 1,459 million - FY ending 31st December, 2019
Competitive Analysis of Overstock
The SWOT analysis for Overstock is presented below in a matrix followed by the detailed analysis report
Strengths | Weaknesses |
1. Expert in technology-based retail
2. Known for high quality merchandize
3. Consistently ranked among top firms for customer service
4. Advance digital payment platform ownership
| 1. Consistently significant losses in operations
2. tZero’s dependence on few broker dealers makes it vulnerable
|
Opportunities | Threats |
1. Steady transitions of furniture sale to online mode, driven by millennials
2. Home confinement led increase in sales
| 1. Adverse effect on resources due to litigations over ownership of tZero
2. Incidents of variety of security breaches
3. Significant expenses due to IP infringement claims
4. Low barriers to entry have led to intense competition
|
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Detailed SWOT Analysis of Overstock
Strength
1. Expert in technology-based retail: Overstock Inc. is an America based internet retailer which primarily focuses on selling furniture. It has two basic segments- Retail and Medici Ventures (which handles tZERO Group, Inc. (tZERO). The company sells its retail products via various websites namely, www.overstock.com, www.o.co, www.overstock.ca, and www.overstockgovernment.com. These are collectively referred to as the "Website". The company sells a broad range of products like furniture, rugs, décor items, home improvement etc. Its goal is to provide goods which satisfactorily furnish “Dream Homes for All”. Most of the furniture available on the website is closeout merchandise of other firms. This may be excess furniture or returned merchandise. A part of its merchandise is specially designed for and sold by the firm as well. Other items like books, magazines, DVDs etc. which are purchased from third parties are also be found on its website. The website acts as a marketplace for customers to meet other third parties.
2. Known for high quality merchandize: Merchandise sold by Overstock Inc. is obtained via three ways. When the company purchases excess inventory from failed or closed out firms, it is referred to as “direct” business. When the company sells goods of other retailers, firms or manufacturers on a commissioned basis it is referred to as “fulfillment partner" business. The third way is when the company gets furniture specifically designed for itself by its workers in developing nations. All three ways combined help the firm get best prices, good quality and a lot of customer attention. Other items sold by Overstock like books, video games etc. are categorized as “BMV”. The company attains high sales in this category too. The company is popular for the quality of its products and their affordable prices.
The remaining section under "Strengths" is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
This section is available only in the 'Complete Report' on purchase.
Threats
This section is available only in the 'Complete Report' on purchase.
The PESTLE analysis for Overstock is presented below in a table followed by the detailed analysis report
Political | Economical |
1. US tariffs on China affected sourcing
2. Involvement in political investigations created uncertainties
| 1. Boom in housing sector to benefit furniture sales
2. Bitcoin reserves expose to exchange rate risks
|
Social | Technological |
1. New consumers prefer unique furniture over trends | 1. Improved shopping experience with augmented reality
2. Blockchain for enterprise management
|
Legal | Environmental |
1. US treasury to tighten cryptocurrency rules
2. US Supreme court’s 2018 order on sales tax collection can have adverse impact
| 1. E-Commerce can reduce environmental impact through reusable packaging |
On purchase the Overstock SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
Detailed Pestle Analysis of Overstock
Political
This section is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
This section is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
1. E-Commerce can reduce environmental impact through reusable packaging: Environmental sustainability is the need of the hour. Every company seeks to protect and preserve the environment in which it is working. Overstock devised an investable theme for the same. It revolves around systems which encourage use of returnable or refillable containers and packaging. The concept is fairly new to our times but has been a proven concept in the past. The details of the project like scalability, recurrence etc. are yet to be chalked out, which would allow them to be more compatible with the growing size of the e-commerce industry. This would in turn help to do away with one-way flow of packaging which is currently used by several e-commerce giants.
Major Competitors :
- Amazon
- AliExpress
- eBay,
- Rakuten
- Google Shopping
- Wayfair
- Blue Nile
- Bluefly
- Houzz
- Hayneedle
- Zappos
- Zulily
- Ashley Furniture
- Bob's Discount Furniture
Major Brands :
- Medici Ventures
- tZero
- tZero Markets
- tZero SpeedRoute
- tZero Crypto
- Overstock
- Bitt
- Medici Land Governance
- Grain Chain
- Voatz
- Evernym
On purchase the Overstock SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
You may also be interested in other analyses of Overstock:
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Overstock Porter's Five Forces Analysis |
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Overstock Value Chain Analysis |
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Overstock Covid-19 Impact Analysis |
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Overstock Segmentation, Targeting and Positioning (STP) Analysis |
|
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Overstock Ansoff Matrix Analysis |
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Check Out Analysis of Other Relevant Companies
References used in Overstock SWOT & PESTLE Analysis Report
1. OSTK.O | Overstock,com, Inc. Profile - https://www.reuters.com/companies/OSTK.O
2. 2020 Annual Report - https://www.annualreports.com/HostedData/AnnualReports/PDF/NASDAQ_OSTK_2020.pdf
3. About us | Overstock.com - https://www.overstock.com/about
4. Overstock investor report 2020 - http://investors.overstock.com/static-files/2e08c2ff-fdc4-4f84-b524-707a67e39479
5. Home Improvement Activity Increases During Covid-19 - https://www.businesswire.com/news/home/20200723005099/en/Home-Improvement-Activity-Increases-During-COVID-19
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Overstock SWOT and PESTLE Analysis has been conducted by Mohit Harishchandra Deshmukh and reviewed by senior analysts from Barakaat Consulting.
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