Kathmandu Holdings Limited Essay

3521 WordsOct 25, 201115 Pages
Kathmandu Holdings Limited Syndicate Case Study Report S2 2010 Executive Summary Kathmandu Holdings Limited (KMD) is a renowned specialist in quality clothing and equipment for travel and outdoor adventure in New Zealand and Australia, operating 97 stores across New Zealand, Australia and the United Kingdom. KMD commenced trading on the Australian and New Zealand Stock Exchanges in November 2009. This report will commence with an overview of the external and internal environments in which KMD operates and based on this overview, key strengths, weaknesses, opportunities and threats can be identified. Subsequently, extensive stakeholder analysis will then be conducted to determine each of KMD’s stakeholders’ specific…show more content…
Competitors include BCF, Ray’s Outdoor, The North Face, and Columbia. The major threats in the industry environment are detailed below: The Bargaining Power of Suppliers (Moderate): Most of the industry’s products are sourced and manufactured by a network of third parties. The supplier group is diluted compared to the industry; KMD alone has over 45 suppliers. There is credible threat of suppliers adopting forward integration resulting in loss of major suppliers and emergence of new competitors for the industry. Highly effective and specialised products will pose high supplier switching costs for industry firms. The Intensity of Rivalry among Competitors in an Industry (High): Equally balanced competitors exist within the industry such as BCF and KMD; these firms also face competition from retailers and wholesalers. The growth of the industry is relatively agile in both financial and technological aspects. The intensity or rivalry is further accentuated by relatively high storage and fixed rental costs, extensive product differentiation and minimal switching costs. 1.2 Internal Environment  To provide quality products to a broad market at a range of price points This valuable capability provides greater choice to customers and exploits Australians and New Zealander’s pursuit for an active lifestyle. It is difficult to imitate KMD’s strong supplier relationships and furthermore, the GORE-TEX license guarantees
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