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
Australia is a unique country, and it has a long history of population growth due to
For the company to ensures success in its operations there is need to cultivate customer loyalty and facilitate efficient supplies, differentiator linkage between operations and buyers must be put in place. This will be facilitated through some ways. To cater for customer needs the company will have to ensure it adopts a competitive pricing strategy against the existing competitors and new entrants in the market. The company has a lean pricing policy and to take advantage of its off- price apparel strategy. The customer’s loyalty has to be sustained through the low prices they enjoy
Bargaining Power of Buyers: The bargaining power of buyers is high in the department store retail industry. The volume of buyers is high, and buyers are very price sensitive in this industry. The products are not highly differentiated, and there are numerous stores that offer the same, or similar, products, giving buyers the opportunity to search for the lowest prices and information. The industry has substitutes available in the form of specialty, differentiated products and stores. This increases the power of buyers,
In 1901 just 4.0% of the Australian population were older people and after two decades this has increased to 6.4%. In 2011 the aged population continued to increase and reached 14%. The Australian Bureau of Statistics (Abs.gov.au, 2012) indicates that since the baby boomers are now becoming old, there has been a decrease in fertility rates and an increase in life expectancy. The population of people over 65 years has continued to increase and it is predicted that it will continue to increase for the next 50 years. As people become older they are more susceptible to becoming sick and in need of government benefits. Since there is a major
Vendors got in on the Halloween action, too, dressing up and handing out treats to children. Not all of the goodies were typical Halloween candies, however. As a Teal Pumpkin Project® event, some merchants
The information gathered has been quite consistent with the expectations had before having begun this research report. The ageing population has been a topic that has discussed on the radio, in newspapers and on the news and so there was a fundamental understanding of the changing demographic facing the Australian population, though there wasn't much of understanding of why this was happening. This issue is something that many countries around the world are facing so this also makes it well publicised. In the future, more time could have been used to explore past Australian census which could provide more vital information on Australia's past and present populations
The Australian population is showing an increase each year from previous years. The natural increase of births minus deaths is on the rise and can be contributed to the nations advancement of healthcare technology increasing life expectancy and lower infant mortality and a decrease in fertility rates, mean we as a nation are living longer (Australian Bureau of Statistics, 2011). Life expectancy rates have also risen due to the
Australia’s ageing population is increasing rapidly. A primary cause of this is due to the ageing baby boomers expected to account for 25 per cent of Australians aged over 65 by 2047. (Treasury, 2007) Across the coming century Australia is anticipated to age for two reasons, a decreasing fertility rate and a rise in life expectancy. (Treasury, 2007)
According to the Australian Bureau of Statistics (2008) by 2036 people aged sixty-five and older (frail aged) will make up 21.9% of the total New South Wales population. In 2007, there were 2.4 million people aged 65-84 years. According to the Series B projection, the number of people this age will grow by an average 2.7% per year to 2011, then accelerate to grow by an average 3.5% per year over
In the year ending 31 December 2009, Australia's estimated resident population (ERP) had increased by 433,000 people to 22.2 million, a 2.0% increase from December 2008. This followed growth of 460,000 people (or 2.2%) between December 2007 and December 2008. The rate of population growth has become considerably faster since the mid-2000s. Over the two decades prior to 2006, the annual growth rate had averaged 1.3%, adding an average of 234,000 people per year in that period. The recent growth rate of around 2% per year is faster than at any other time in the past several decades, and faster than nearly all other developed countries.
new clothing product line aimed at matching doll and child clothing and accessories covering all four
Over the years, there have been major shifts within the United States in regards to its population. Statisticians have estimated that 20% of the population will be 65 years of age and older. There is an even
To make his business successful, Colin must consider an integration of price, promotion, place, and product. He must also try and distance themselves from their competition. To do so the brothers must maintain the quality of their merchandise and customer service, reasonable prices, and improve their promotion strategies. For one thing, the price of his products must be within a
From 1970 to the year 2000, the world's over-60 population is projected to increase by more than 90 percent" . This is an astonishing number, seeming how the total population was predicted to grow by less than 75 percent . "The most prominent feature of the looming shift in the composition of the working-age population is, of course, its increasing age" . It is hard to say what will happen when suddenly there will be an abundance of older people who are preparing to retire.
The world’s population is ageing rapidly. Between 2000 and 2050, the proportion of the world's older adults is estimated to double from about 11% to 22%. In absolute terms, this is an expected increase from 605 million to 2 billion people over the age of 60.