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Billabong Case Study. This report provides an analysis of Billabongs current situation and both the external and internal evaluations

Extracts from this document...

Introduction

Wei Yu 18632 ? Max Yang Gow 17814 Eliza Reid 19892 - Damien Baric XXXXX Executive Summary This report provides an analysis of Billabong?s current situation and both the external and internal evaluations. Methods of analysis include vertical and horizontal evaluation as well as SWOT implement. There is a thorough analysis of economic, social-cultural, political and legal factors, and also environmental points of view, alongside the overview of Billabong and how it basically operates. This report also aims to explore the current problem and challenges of Billabong that have to be confronted. All the findings disclose that the current issues of Billabong are having huge debts and lack of a strong competitive advantage aspect, also a lack of small retail management experience causing stock turnover problems. The report shows the prospects of Billabong in its current situation are not positive. The main challenges of Billabong are addressed in detail and strategies have been recommended to improve or ride these. This is done in the format of three categories: business, functional and corporate, also useful strategic recommendation implementation and control are concluded at the end. It lays out the strategy of product design diversification, online marketing and sales development, managerial hierarchy restructure, disagreement of the current TPG contract and continuing to close unprofitable stores. Those strategic suggestions could be a transition to make Billabong operating more positive and to overcome the challenges through the strong analysis in various prospects. However, how to control and monitor the store performance could be another challenge to confront. Also, in order to apply the discussed strategies into reality and make them happen, Billabong has to strengthen their Human Resource management to keep the company operating smoothly. Overall, Billabong is now facing a complex and unforeseeable situation, unless efficient and proper strategies are implied on the right track to overcome all of the challenges which have been analysed. Current situation Billabong International is Australia?s largest surf wear manufacturer with a main interest in the distribution of clothing, accessories and eyewear. ...read more.

Middle

(http://www.dailytelegraph.com.au/its-a-wipeout/story-fn6b3v4f-1226262750479) Competitive Advantages Billabong is sold in over 100 countries which is a major competitive advantage over direct competitor Quiksilver who rely on their USA sales only. This limits Quicksilver to seasonality earnings as while they are either making only summer or winter profits, Billabong makes both all year round due to the Northern and Southern Hemispheres. (http://essaysforstudent.com/essay/Marketing-Plan-Billabong/67974.html) Strategic Factor Analysis External Factor Analysis Summary (EFAS) External Factors Weight Rating Weighted Score Comments Opportunity · Increased popularity in other sports allows for new sub-brands Urbanisation: more people moving to snow areas Environmental movements: attracts environmentally aware customers Export barriers reduced make it easier for trade Government protection of domestic Manufacturers increases profit Advertising through social media Innovative designs which gives competitive advantage Threats Rising levels of living costs and decreased consumer income Exchange rates causing consumers to buy overseas Fashion trends which surf and snow wear cannot keep up with Urbanisation: less people living on the coast Emergence of sporting brands which pro-surfers prefer .08 .08 .08 .11 .08 .08 .08 .07 .06 .06 .07 .08 .07 4 3 5 4 2 4 5 2 1 3 2 3 3 0.32 0.24 .40 .44 .16 .32 .40 .14 .06 .18 .14 .24 .21 Should be awareness of the new tread of sports apparel industry Design should be meet the needs to extend snow areas Well positioned Focus on more online export trade The protection keeps the profits Hard to always maintain the profits, depending on sales and season. Well positioned should more fashioned and functional to increase competitive advantage It takes time This will be weak impact on domestic consumers Life circle and need more advertising Make to think the change company’s direction Should catch up the fashion trend and keep unique branding, increasing brand customer loyalty Total weighted Score 1.00 3.25 Internal Factor Analysis Summary (IFAS): Billabong Internal Factors Weight Rating Weighted Score Comments Strengths · Independent surf stores · Weaknesses Age of the company Emergence of sporting goods Lack of small retail ...read more.

Conclusion

Since the future is looking more into online, Billabong should step away from owning stores and instead only sell their product in the outlets and reap the benefits. Implementation and control Strategy When Implementation Control -Expand new market and diversify its products range -Cost leadership should implement on Billabong current strategy -plan to expand new market by the end of 2013, and implement product range diversify from now on -Expand its presence market into youth-oriented markets by using of strategic alliances, providing heavy job offer to repetitive fashion and stylish apparel designer to establish a new image of Billabong, at same time remain its surfing direction. - Outsource should be a solution to cut off the cost of Billabong and have more time to focus on product design and production efficiency to overcome the company trauma first in order to maintain the competitive advantage in this surfing price-sensitive market. -Continuing to monitor store performance and if they drop below the criteria close it -Use the funds which saved from closing store to operate more meaningful campaign to recovery the company and maintain customer loyalty and explore potential customers -Strengthen Human Resource management and monitor staff production efficiency and emphasis lifestyles. Imply and award KPI policy to measure staff?s performance and educate brand culture Reference list Jobs to Go. (2012), Retrieved on July 27, from http://www.news.com.au/business/breaking-news/jobs-to-go-as-billabong-closes-150-stores/story-e6frfkur-1226273561313 Billabong Design. (2010). Retrieved on July 27, from http://www.pagesdigital.com/billabong-design-humanity-event/ Billabong Moves. (2012). Retrieved on July 30, from http://news.smh.com.au/breaking-news-business/billabong-moves-to-reduce-debt-20120621-20pix.html Memories Of. (2012). Retrieved on July 27, from http://www.thesurfbum.com/marketing/thfe-billabong-i-surf-because-campaign/ Billabong Online. (2011). Retrieved on july 28, 2012 from http://finance.ninemsn.com.au/newsbusiness/aap/8287619/billabong-online-sales-growing-strong Abdul Montaqim. (2012). Retreived on July 28, from http://www.internetretailer.com/2012/07/25/us-based-quiksilver-launches-10-e-commerce-sites-europe Megan Brunner, (2012). Retrieved on July 29, from http://www.surfersvillage.com/surfing-news/55173. Managing change in Billabong Case Study, Docstoc online (2012). Retrieved on July 29, from http://www.docstoc.com/docs/23285999/Billabong-Case-Study Cooperate overview, Billabong.(2012). Retrieved on July 29, from http://www.billabongbiz.com/phoenix.zhtml?c=154279&p=irol-homeProfile Billabong International Ltd, Gale Directory of Company Histories.(2012) Retrieved on July 30, from http://www.answers.com/topic/billabong-international-ltd#ixzz22whyroZ8 BILLABONG INTERNATIONAL LIMITED (BBG), Investsmart online(2012). Retrieved on July 30, from http://www.investsmart.com.au/shares/asx/BILLABONG-INTERNATIONAL-LIMITED-BBG.asp Billabong History, About Billabong(2009). Retrieved on July 30, from http://www.billabong.com.au/blog-post/45/history ...read more.

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