the international level, but for the most part The Limited, Inc. operates mostly in the domestic United States.Consumer Characteristics and BehaviorThe Limited Inc.'s primary customers include mostly younger to middle-aged women, although some product lines are geared more towards men. Most consumers in the apparel industry are not product loyal. Most consumers will buy the best clothing they can find at reasonable prices. The Limited, Inc's operations are mostly seasonal in nature and consist of two principle selling seasons: spring(the first and second quarters) and fall(the third and fourth quarters). The fourth quarter, including the holiday season, has accounted for 35% of net sales in 1998. Accordingly, cash requirements are highest in the third quarter as the company's inventory builds in anticipation of the holiday season, which generates a substantial portion of the company's operating cash flows for the year.SWOT ANALYSISInternal Factor EvaluationThe Internal Factor Evaluation matrix scored The Limited, Inc. at a 2.75. Note that the firms major strengths are its size, and divers line of products. With over 5,400 stores this company has the potential to do tremendous volumes of sales. Plus the company's increasing line of products helps reach a larger target audience, and allows for more choices. The major weaknesses include several different things. The Limited, Inc. has closed more stores than it has opened, net sales dropped as a result of the Abercrombie and Fitch spin-off, and the fact that in the past years less then 2% of sales went to marketing and promotions. Although these weaknesses are present, The Limited, Inc. is rated slightly above the average of 2.5.External Factor EvaluationThe External Factor Evaluation matrix gave a weighted score of 3.05. This indicates that The Limited, Inc. is responding well to existing opportunities and threats in its industry. That would lead critics to thinking that the compa...
