Pumpkin Patch Case Study Analysis Essay
External Analysis Pumpkin Patch
What industry is it?
Pumpkin Patch (PP) is one the largest specialty company in fashionable children’s wear industry in Australia. They sell through a wide range of channels such as its own retail stores, selected department stores, and wholesale distribution and through the internet (Hanson et al. 2011).
General Environment Analysis
Demographic: Australia’s population is estimated to be around 22.7 million people, UK estimated to be around 63 million people and the most populous US at about 314 million people. Also, the world’s population is aging relatively quickly. This increase in aging, however, is not distributed …show more content…
There are a lot of competitors in the childrenswear industry and the degree of differentiation reduces the intensity of this rivalry amongst competitors. In this case, fashion is really the key factor for differentiation. The largest competition in the children wear industry includes department stores and discounters such as Mark & Spencer and Wal-Mart. The second largest group of competitors is specialty clothing retailer who has children section like GAP. Finally, a third category is specialty of children’s clothing like Pumpkin Patch. Competitive rivalry intensifies when there is high strategic stakes where it is important for the competitors to perform well as a market leader. For example, Pumpkin Patch who specializes in selling mainly children’s clothing. However, in a growing market the pressure to take customers from competitors are lower. Also, rivalry is reduced when buyers find a differentiated product in the children wear industry that satisfies their needs, they tend to develop brand loyalty. Finally, intensity of rivalry among competitors in the children clothing industry is moderate to high and the need for brand recognition/ differentiation in this industry is essential to reduce intensity of rivalry amongst competitors.
Bargaining Power of Buyers (Moderate-High)
In most industries, buyers are limited to choice in buying products, particularly from the