Essay Billabong Case Study

10495 Words Dec 11th, 2012 42 Pages
Introduction
Billabong International Limited (BBG) produces surf wear, sports apparel and accessories for the surf, skate and snowboard markets (Macquarie, 2012). The firm recorded an 18.4% decrease in

net

profit

to

A$119.1

million

in

2011

(Billabong Shareholder Review 2010/2011). After intense acquisition efforts, which saw
Billabong buying over 11 brands (Appendix A), the company was forced to undergo a major restructuring, closing 150 stores and cutting 400 jobs worldwide (AAP, Feb 2012).
The report will be analyzing the Billabong brand, specifically its surf wear in Australia, to identify the underlying crucial issues that must be addressed. Current opportunities and threats that Billabong can leverage
…show more content…
Low conversion rate despite high brand awareness

To capitalise on the individuality of surfers, their Self Esteem Value, customization of apparel will be

3. Surf wear is declining in popularity as a form of casual

introduced through Billabong’s e-commerce site and boutique stores.

apparel due to increasing availability of cheaper

To create exclusivity and reduce over-supply, Billabong

alternatives

can reduce the quantity per collection and increase the frequency of collections to keep up with trends.
Collaborations with well known fashion designers, celebrities or pro surfers can be explored for limited edition ranges.

Billabong can introduce a customer innovation platform,

where customers give feedback or submit designs through their e-commerce site and physical stores. This ensures that styles remain relevant. A CRM system can be installed to track customers’ purchases and predict successful collections.
Scenario 3

Incorporating Environmental Sustainability to achieve a competitive advantage

Key Issues Addressed
1.

Australians are increasingly environmentally conscious

Billabong will either engage in a coopetition with a supplier or competitor to invest in green research and development for the surf wear industry. The brand can also rely on its

Related Documents