The company’s main weakness is their excessive dependence on vendors. The company depend on the few vendors for most of their revenue. In “FY2015, Ulta generated approximately 50% of its total net sales from its top 10 vendors.” Their dependence on those vendors are not secured because Ulta does not have a contract for long-term supply agreements or exclusive arrangements. Therefore vendors can decide to stop their affiliation. Ulta will suffer a big loss because their competitive advantage is their ability to offer a broad selection of products. Although the company has 974 stores in 48 states, Ulta have a weakness in their lack of scale. When it comes to its competitors Ulta has a small scale of operations. Because of its small size Ulta
