ABCDE
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In-Depth Competitive Analysis using SWOT
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Basic information:SkillshareYouTubeWooblesMichaels
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In one sentence, what do they do?
(I.e. What service do they provide?)		A platform to learn new skills through online classes for a monthly subscription fee.A platform to watch entertainment videos and occassionally educational videos for free.A company that provides crochet learning kits for all skill levels (beginners and up) mailed directly to the user for a monthly subscription feeA craft store that sells supplies and occassionally has in person classes to learn new and specific craft projects for a sign up fee.
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What features do their product/website have?One on one learning, full courses, self-paced learning, not limited to crafting (all skills included), customers can even teach. Most searched category is techAssorted videos uploaded by individual users, influencers, and companiesAll in one kit to learn how to crochet a specific stuffed animal. Includes a card with a QR code for an instructional video on how to do the crochet. Website includes listings for all of their products to sellSorting by craft type, search functionality, project ideas
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Who are their customers/users?Young people ages 25-34Minimum of 13 years oldAll agesAll ages-large section for children in elementary school age
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Strengths:
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What advantages does the business have?Well marketed and organized. Easy to find what you are lookng for. Can view videos offline. Community spaces onlineThey are not restricted to one type of income. They have advertisers, as well as sales done on the site. They also host videos through GoogleThey sell both direct to the customer and through Joanns as a third party sellerWell established company-the name is well known. Coupons
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What are their core competencies?Career and Self Development, LeadershipTechnologyInclusionTeamwork
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What resources does the business have?Customer based teachers, while also including professionals. Can be used as a career development siteAnyone who has an account can upload, therefore their resources are almost infinite. Depending on if the user has a lot of views or not, they could not even be paid.They have social media influencers and known licenses they collaborate with to create crochet figurines to sell to fans.The ability to have both in store and online options. That is a huge advantage over the others. That gives customers the ability to ask questions in person, but also know the quality of what they are paying for at the door
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Where are they making the most money?Monthly subscriptioinsAdvertisingIndividual kit salesSeasonal decor items. They make a lot in other crafting items as well. Have a lot in framing that does not seem to get used
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What are they doing well?Marketing. Since COVID shutdown, the online qualifications one ccan get through a site like SkillShare are valued the same as traditional in-person coursesThere are constantly new videos being posted to the platformMarketing and capitalizing on people loving cute thingsThey have a demographic they cater towards and do everything to keep it
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Weaknesses:
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What needs improvement?Marketing to Older GenerationsUsers to put bookmarks on the sections of thier videosExpand their resources. Have more kits available for different skill levels. There is a focus on beginnersThe app and website. Desperately
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What are they doing poorly?Affordable pricing or free options for lower income usersMonitoring the content put onto the platform. There is often misinformation or downright racist stuff put on the site without much oversight.Not having individual items for sale such as extra yarn or stuffing or eyes. The kits are expensive, so having addons could be helpful or lucrative for them. Maybe create kits for people who have purchased in the past that doesn't have all of the extra things (ie hooks, scissors, needles etc). Continuously adding new sections/redesigning stores instead of focusing on keeping their staff who know what they are doing and able to help the customers
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What areas are they avoiding?Older generations who are not as tech saavy to be able to use the online learning platformsCapping down on actually problematic creatorsExpanding their business to include more patterns at one timeHigher quality that would mean a higher price point
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Where do they lack resources?Possible teachers. who are the ones teaching the classes and what exactly will they focus on?Inability for the user to know what exactly they need before they start the videoThey are a very small business, so they may need more people to come up with patterns and create the actual productsIn store employees. Many locations are running on two to three employees per shift which is not nearly enough for the large stores
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Where are they losing money?They mainly market on YouTube or podcasts. Older generations don't necessarily consume either media type, so they may not know about it at allNot doing subscriptions. Creators moving to another platform if they aren't making moneyOnly having beginner and intermediate options for the patterns. Making more advanced kits could be good for users as they progressNot having in store classes much anymore and not having a kind of FAQ type person who can help new crafters with techniques they may be new to
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Opportunities:
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Do you notice any beneficial trends?Online learning has become normalized since COVID. No need to pay in person instructors of only a few people to show up to a class. This is all on demand informtionPeople watch YouTube more than cable television anymoreMore people are getting into crochet and "grandma" hobbies as time goes onThe uptick in at home hobbies since the pandemic. More people are wanting to save money by making things like gifts at home rather than buying them.
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What niches is this competitor missing?The bigger community aspect. From what I can tell, it is more of an insulated website where people don't necessarily interact with one another.There isn't a specific way to filter the crafts the users want to learn other than typing in what tutorial they are looking forSelling kits for higher skilled craftersUtilization of their teaching space. Some old stores are using the space as storage now. Newer stores aren't building it anymore
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New technologies/innovations?People are going online for learning more than in person since COVIDPossibly having AI help users find what they are looking for easierThey have a new type of yarn that does not frayUtilizing apps like doordash for craft item delivery
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New needs of customers?To have the database more easily searchableUpdating content regularlyNo options for more advanced customersQuick shipping/delivery
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Threats:
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What obstacles will they have to overcome?Users over 35 are less than any other age group. There is a fear towards trusting online-based learning from older groups of peopleAn over saturation of video-makers with conflicting information. Also users can be easily distracted and sucked into "rabbit holes"The niche of having a single use product like a crochet kit when many people can find patterns for free online and yarn at places quicker than they can shipCompetition. Many cities that have a Michaels also has a Hobby Lobby or Joanns. Even Dollar stores are starting to have similar quality items for less
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Do they have any aggressive competitors?-YesYesOnline sellers such as etsy or Amazon
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Do they have any successful competitors?MasterClass and YoutubeYesYesEtsy and Amazon, Joanns, Hobby Lobby
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Are there any negative economic conditions?It is relatively expensive and we are most likely going into a recessionPeople are not wanting to pay for a subscription to YouTube premium now that everything has become expensive againIt is cheaper to get yarn and crochet supplies from an in-person retailer than it is to order and ship itCrafting supplies are getting more expensive to make and less people want the lower quality items they typically have in stock
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What government regulation might impede them?Nothing of noteCopyright infringement via music. Possible censoring in the futureNothing of noteNothing
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Are they in a changing business climate?NoNoNoYes. With more sales moving toward online by the day, brick and mortar stores are becoming less trafficked
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What vulnerabilities do they have?Reliance on their current subscribers-they don't sell anything tangibleContent creators leaving the platform or being problematic so viewers leave.They sell one niche product. It is popular now, but what is the sustainability of it?Their teaching space is lacking as is their technological aspect
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Background from Similarweb.com
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Founded2010200520201973
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Employees50-200713751-20045000
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Online/Brick and MortarOnlineOnlineOnline and Sold in JoannsOnline and Brick and Mortar
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Annual Revenue75-100 Milllion (as of 11/2024)>1 BillionAround 3 million5.362 billion
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Average Visit Duration2:4320:196:534:30
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Pages per visit3.7110.916.354.66
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Top CategoriesComputers/Tech, Programming and Dev Software, Graphics Multimedia and Webdesign, News and Media, EducationVideo games consoles and accessories, computers electronnics and technology, programming and dev softwareNews and Media, Lifestyle: Fashion and Apparel, Games, Videogames and Accessories, Computers Electronics and TechnologyLifestyle Fashion and apparrel, News and Media, Finance, Computers Electronics and Technology, Home and Garden
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Primary CountryUS Primary CountryUS Primary CountryUS Primamry CountryUS Primamry Country
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Ranking#37 in Category: #1 in category-streaming and online tv#75 Restaurants and Delivery#13 E-commerce and Shopping
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Highest User Rate Age Range25-34 age range25-34 age range25-34 age range25-34 age range
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OtherAnyone can become a teacher on the platformYouTube Was Originally Designed To Be A Dating App.Started as a side gig on Etsy. Was pitched on SharkTank and was passed onIn 2021, Apollo Global Management acquired Michaels for $3.3 billion.