Kathmandu Ltd Essay

2220 Words Oct 8th, 2010 9 Pages
PART 1 SWOT Analysis
1.1 Industry Analysis
Porter’s five forces analysis is presented as below for industry analysis of Kathmandu: Industry Competition→High | * Leadership in clothing and equipment retail in Australia and New Zealand. * Competitors within this area include | Barriers of entry→Medium-High | * Relatively low level of product design differentiation * High barriers for technically credible products | Threat of substitutes→Medium-High | * A wide variety of other substitute to choose from * The popularity of indoor activities | Bargaining power of customers→Medium | * A broad customer base and the customer spans a wide range of ages and demographics * High customer loyalty to the brand,
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But the salary/wage rises may be an expense of dividend and impair shareholder’s benefit. |

Communities | Society, organizations, individuals on which Kathmandu has direct or indirect impacts. | Specific interests | * Employment prospects * Safeguarding the environment * Ethical behavior | Alignedwith/Opposed toshareholdervalue | Aligned → A successful, positive company image is built by the support of many different communities.Opposed → no one in shareholders would like to see the expenditure come from communities’ investment, it’s a public welfare, but significant damage to the company net profit. |

Customers | People who purchasing products from Kathmandu, including potential customers | specific interests | * Reasonable or low prices * High quality products and service * Clear and accurate information * Variety choices of products | Alignedwith/Opposed toshareholdervalue | Aligned → High customer satisfaction brings more sales and generates more profits to the shareholders’ value.Opposed → Due to customer’s satisfaction, the cost of redesigning and provide products with low price and high quality will impair Kathmandu’s profitability. |

Part3 Strategy Analysis
3.1 Continuing the store roll out in Australia and New Zealand
Kathmandu plans to open 12 new stores in attractive markets by2010. (a) Suitability of the strategy * Policy encouraged more outdoor activities * Economy of scale * Gain in market

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