Evaluate its appropriateness, in the context of the SWOT analysis A study is conducted to evaluate the appropriateness in accordance with SWOT analysis of the strategic initiatives taken by an UK business company. The company Kathmandu Holdings Limited has taken new initiatives towards continues product opportunities.
They company has gained specialist recognition for quality clothing and also for equipments related to travel and adventure in Australia and New Zealand. The GDP growth rate of 2009 in Australia and New Zealand were registered at 0.73% and 0.13% respectively. In 2010 also there has been a positive growth rate. The expansion of economy and customers willingness to spend could provide the company a massive growth opportunity in future. The expansion of product range would be an appropriate initiative as it would help them to not only attract customers of different taste and preference but also would help to divert customers from other stores towards their stores which in turn would help to tackle the threat of market competition. The economy of both countries is strong enough to absorb the business of the company which is offering deep range of products and due to its large operations it can collect data for consumer demand.
The main weakness lies in unsystematic risk. The unseasonal weather conditions might affect the demand for the product offerings.
The expansion of the economy in both countries will provide an enhanced opportunity to the company in tapping the market conditions and proper analysis of data related to consumers will give opportunity to grow with the market. As market grows, so the company would also grow with the expanded economy.
The biggest threat is the category of consumers for their products have been on decrease which might lead to decrease in demand in near future. There is no point of offering wide range of products in such a case and new product development strategy should be involved.
Kathmandu Holding Limited. Prospectus. Kathmandu
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