Billabong Case Study

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Billabong Case Study

Managing Change
← Australia’s largest surfwear manufacturer, annual sales = $680 million (2003/04) ← Core business = marketing, distribution and retail of clothing, accessories and eyewear ← Sells products under other brand names including:

• Element (Skate wear)
• Von Zipper (sunglasses)
• Honolua Surf Company
← Founded in 1973 – by Gordan and Rita Merchant
← Reputation = supplying quality surfwear
= innovative product design
← Began with boardshorts, within a few years extended to surfboards, wetsuits and t-shirts ← 1983 – began distributing to US in order to increase sales and establish global identity o this required considerable financial resources and more formal managerial structure ← expanded to NZ (1985) and France (1987)

← Now owns retail stores o/s and manufactures many products in East Asia ← 70% sales in o/s markets
← Billabong has now diversified by selling products under different brand names (see above) ← 2000 – Billabong became a publicly listed company … one of Aust’s 200 largest companies

External sources of change
1. Economic factors
▪ Rising levels of consumer income has improved living standards throughout the Australian economy; which has contributed to the growing popularity of surfing ▪ Global scale = incomes in East Asia and South America have helped to create new markets and encouraged company’s global expansion 2. Social factors

▪ Increasing popularity of surfing and surfwear among the broader community = growth ▪ Increasing popularity of other sports, such as skateboarding, has lead to diversifying of product range and expansion into new markets where surfwear sales still have enormous growth potential 3. Financial factors

▪ Expansion of the Australian financial system in the 1990s was...
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