Kathmandu Holdings Limited

Topics: Strategic management, Customer, Fixed cost Pages: 12 (3525 words) Published: October 9, 2011
Kathmandu Holdings Limited
Syndicate Case Study Report
S2 2010

Executive Summary

Kathmandu Holdings Limited (KMD) is a renowned specialist in quality clothing and equipment for travel and outdoor adventure in New Zealand and Australia, operating 97 stores across New Zealand, Australia and the United Kingdom. KMD commenced trading on the Australian and New Zealand Stock Exchanges in November 2009.

This report will commence with an overview of the external and internal environments in which KMD operates and based on this overview, key strengths, weaknesses, opportunities and threats can be identified.

Subsequently, extensive stakeholder analysis will then be conducted to determine each of KMD’s stakeholders’ specific interests, and whether an alignment of interests between shareholders and those stakeholders exist. Measures will be recommended to monitor the generation of stakeholder value.

A determination of a number of strategic initiatives appropriateness in the context of the SWOT analysis will follow, and an evaluation on the impact of these initiatives on each of the major stakeholders will be identified. An implementation proposal will be provided that will assist KMD in aligning shareholder interests with other stakeholders.

This report will conclude with a performance management system in the form of a strategy map and a Balanced Scorecard, containing objectives, measures, target performances and initiatives related to the strategic recommendations mentioned.

The Consulting Team believes KMD possesses the capabilities and core competencies to exploit its key opportunities and strengths, while neutralising environmental threats and internal weaknesses. The strategic recommendations outlined in the report will provide KMD with a foundation for sustainable competitive advantage.


1SWOT Analysis1
1.1 External Environment1
1.1.1General Environment1
1.1.2Industry Environment1
1.2Internal Environment2
2Stakeholder Analysis3
3Strategic Recommendations4
3.1 Product Opportunities4
3.2 New Store Rollout5
3.3 Efficiency Gains6
4 Implementation Proposal7
4.1Product Opportunities7
4.2 New store rollouts7
4.3Efficiency Gain7
5Strategy Map and Balanced Scorecard8

1SWOT Analysis
1.1 External Environment
1.1.1General Environment
Demographic: Australia’s growing population is projected to reach 42.5 million and Queensland and Western Australia’s population are projected to more than double by 2056 (ABS, 2008). This may offer a key opportunity for KMD to expand its customer base and identify new markets. Economic: Growing consumer confidence depicted by an increase in retail turnover and use of credit facilities (Martin, 2010) may enhance KMD’s sales revenue; and the Australian Dollar’s appreciation to above 95 US cents (Maiden, 2010) will decrease costs of inputs derived from overseas markets. Socio-Cultural: Programs such as the ‘Measure Up’ campaign which promote fitness and health may attract new customers to KMD (Kathmandu Prospectus, 2009). Technological: Developments in data mining have enabled businesses to identify trends from historical data, which has been instrumental in marketing and fraud detection. Threats

Demographic: Australia’s ageing population is a moderate threat, with the population of 65 years and over projected to increase to 25% in 2056 (ASB, 2010) which may translate to a reduction in the labour force participation rate, contributing to a heightened disparity in income distribution and a decline in economic growth. Economic: Strength of the Australian Dollar is a moderate threat that may inhibit consumer expenditure in Australia’s export and tourism industries. Technological: Reliability and security issues associated with technological reliance may hinder the ability to meet strategic objectives. Global: Globalisation is a moderate threat that exposes businesses to a wider...
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