Billabong Swot Analysis 2012

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COMPANY PROFILE

Billabong International Ltd.

REFERENCE CODE: 41BBAC6B-451C-40A8-BD4C-8862EB1A77EA PUBLICATION DATE: 6 Apr 2012 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED.

Billabong International Ltd.
TABLE OF CONTENTS

TABLE OF CONTENTS
Company Overview..............................................................................................3 Key Facts...............................................................................................................3 SWOT Analysis.....................................................................................................4

Billabong International Ltd. © MarketLine

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Billabong International Ltd.
Company Overview

COMPANY OVERVIEW
Billabong International (Billabong or ‘the company’) is engaged in the marketing, distribution, wholesaling and retailing of apparel, accessories, eyewear, wetsuits and hardgoods in the boardsports sector. The company operates in Australia, North America, Europe, Japan, New Zealand, South Africa and Brazil. It is headquartered in Queensland, Australia and employees about 6,000 people. The company recorded revenues of A$1,687.7 million (approximately $1,669 million) during the financial year ended June 2011 (FY2011), an increase of 13.5% over FY2010. The operating profit of the company was A$159.3 million (approximately $157.5 million) in FY2011, a decrease of 28% compared with FY2010. The net profit was A$119.1 million (approximately $117.8 million) in FY2011, a decrease of 18.4% compared with FY2010.

KEY FACTS
Head Office Billabong International Ltd. 1 Billabong Place Queensland 4220 AUS 61 75 5899 899 61 75 5899 800 http://www.billabongbiz.com

Phone Fax Web Address

Revenue / turnover 1,687.7 (AUD Mn) Financial Year End Employees Australian Ticker June 6,000 BBG

Billabong International Ltd. © MarketLine

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Billabong International Ltd.
SWOT Analysis

SWOT ANALYSIS
Billabong International (Billabong or ‘the company) is engaged in the marketing, distribution, wholesaling and retailing of apparel, accessories, eyewear, wetsuits and hardgoods in the boardsports sector. The company’s large product base offered through multiple channels caters to varied customers and enhances chances of generating more revenues per customer. However, sluggish discretionary spending in US may affect the company’s revenues adversely. Strengths Multi-channel diverse operations Wide geographical presence The addition of the RVCA brand further strengthens Billabong’s brand portfolio Expansion through strategic acquisitions Opportunities Growing popularity of online retail Foray into the Chinese market Weaknesses Excessive dependence on China for production

Threats Low consumer confidence in Australia Rising raw material costs Intense competition may affect market share

Strengths

Multi-channel diverse operations Billabong has a large product base and offers it to the customers through multiple channels. Its product lines include apparel, accessories, eyewear, wetsuits and hardgoods in the boardsports sector. Billabong supplies these products to the distributors across the world. Apart from this, the company owns and operates around 639 retail stores on the whole offering its products through more than 11,000 doors. Billabong operates its own specialty stores and also sells its products through chain retail malls. The company also distributes its products to several online retailers. While the product lines complement each other and provide the company with an opportunity to increase average customer spending through cross selling, a multiple-channel approach targets different customer categories. Customers prefer a seamless shopping experience which is enabled by a large product base which Billabong offers through several channels. Wide geographical presence Billabong’s operations span across several geographical regions....
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