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UniFirst Corporation SWOT & PESTLE Analysis

ID : 52765353| Oct 2020| 15 pages

COMPANY PROFILE -UniFirst Corporation

Business Sector :Uniform rentals and sales, cleaning supplies and services

Operating Geography :United States, Canada, Europe

About UniFirst Corporation :

UniFirst Corporation, founded in 1936, is one of the largest providers of workplace uniforms and protective work wear clothing in the North America. Headquartered in Wilmington, Massachusetts, United States they serve about 300000 customer locations in U.S. and Canada. Their customers vary from small businesses to large companies covering virtually all types of industries. They have diversified operations with Uniform and Ancillary services covering 91% of their revenues. They design, manufacture, customize and rent industrial uniforms, work clothing, specialty protective work wear and ancillary items. They offer a range of garment service options which includes full-service rental programs, lease programs and purchase programs. At certain specialized facilities, they also provide services of decontamination and cleaning of work wear that have been exposed to radioactive materials while working at nuclear plants. Rest part of the revenue comes from the segment of First Aid & safety where they provide first aid cabinet services, safety training and devices to a wide variety of manufacturers and companies.

UniFirst Corporation Revenue :


$1.80 B - FY ending August 31, 2019 (YoY growth 6.5%)
$$1.69 B - FY ending August 31, 2019

Competitive Analysis of UniFirst Corporation

SWOT
PESTLE
The SWOT analysis of UniFirst Corporation is presented below:
Strengths
Weaknesses
1. Broad product portfolio and services
2. Broad customer base with geographic and end market diversification
3. Strong workforce and work culture
4. Nationwide distribution and manufacturing facilities
5. Financial Stability and strong cash flows
1. Low inorganic growth
2. Less focus on Sustainable uniforms
Opportunities
Threats
1. Growth in Uniform rentals market
2. Rising adoption of new technologies
3. Leveraging e-commerce to grow customer base
4. Continued market shift towards more service-oriented economy
1. Increasing competition with several large and small competitors
2. Complying with increasingly stringent environmental regulations
3. Increase in the labor costs
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of UniFirst Corporation

 

Strength

1. Broad product portfolio and services: UniFirst has a wide variety of products and services. They have about 40k SKUs in stock and 340k SKUs in total as of 2019, which include shirts, pants, jackets, coveralls, lab coats, smocks, aprons and specialized protective wear, such as flame resistant and high visibility garments. At certain specialized facilities, they also decontaminate and clean clothes and other items which may have been exposed to radioactive materials and service special cleanroom protective wear and facilities. They also offer non-garment items and services, such as industrial wiping products, floor mats, dry and wet mops, restroom and cleaning supplies and other textile products. They also provide customizable garments with diverse range of designs to large customers. They have the largest in-house digital image processing capability, allowing them to convert an image provided by a customer into customized, mass producible embroidered emblems, typically within two days. Moreover their centralized services, specialized equipment and economies of scale have helped them to be cost effective and gain an advantage.

2. Broad customer base with geographic and end market diversification: UniFirst has a broad customer base with geographic and end market diversification. They serve businesses of all sizes with over 300,000 customer locations across United States, Canada and Europe. Their customers vary from small businesses to large companies covering virtually all types of industries. They are servicing to 253 “Fortune 500” companies and have a longstanding client relationship. Some major clients are Costco, Coca Cola, Walmart, Good Year, Hershey’s, Honeywell, Valvoline and many more. For some specialty garment segment, their customers also include some government agencies, R&D companies and utilities with operating nuclear reactors. They have a 90% customer retention rate with approximately 4.5 years of average contract duration.

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Weakness

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Opportunity

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Threat

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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
References used in UniFirst Corporation Analysis Report

1. Unifirst Corporation Annual Report 2019 - https://investors.unifirst.com/static-files/59fdd966-c966-44c5-a0c0-6e23112798c2

2. Unifirst Corporation Company Profile - https://investors.unifirst.com/corporate-profile

3. Unifirst Corporation Investor Presentation 2020 - https://investors.unifirst.com/static-files/0ee29c83-5d32-4644-a327-070c7279b098

4. Unifirst Corporation Company Website - https://unifirst.com/

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UniFirst Corporation SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2020). UniFirst Corporation SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/unifirst-corporation/ [Accessed 30 Nov, 2020].

In-text: (SWOT & PESTLE.com, 2020)

Copyrights and Disclaimer

UniFirst Corporation SWOT and PESTLE analysis has been conducted by Saurav Mansingka and reviewed by senior analysts from Barakaat Consulting.

Copyright of UniFirst Corporation SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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UniFirst Corporation SWOT & PESTLE Analysis
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