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Pumpkin Patch Case Study Analysis

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MGMT3347- Strategic ManAgment | Pumpkin Patch | Case Study Analysis | | 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…

Nonetheless, buyers always bargain for higher quality, greater level of services but lower prices. Bargaining power of buyers is powerful when they can switch to another product at little or no cost especially in the childrenswear industry, also their power increases when the industry’s product is undifferentiated. Therefore, industry firms needs to adjust the price of their products competitively where buyers are willing to buy but maintain the point at which the industry earns the lowest acceptable rate of return on its invested capital. Analysis Last but not least, the children clothing industry is somewhat attractive with very little concern for bargaining power of suppliers, intensity of rivalry among competitors within the industry is manageable as long as the company is able to differentiate from competitors. However, one force that may be a threat to the children wear industry is the bargaining power of buyers as the switching costs for them to buy products among the industry’s firm is low. Therefore, retaining the customer base in this industry is very important and crucial to the survival of a firm. Over time, methods such as integrated differentiation and cost leadership can help reduce this threat substantially. Competitive Environment JK compete with Pumpkin Patch (PP) based on price and similar fashion. JK have also attempted to recruit designers from PP. These factors affect PP financially and their innovation ability that are big contributing parts

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