Pumpkin Patch Case Analysis
1. Introduction
Pumpkin Patch is a high end children’s clothing company that was established in 1990 when founder Sally Synnott (former children’s wear buyer for Kmart) noticed a gap in the market for fashionable children’s clothing. Pumpkin Patch has developed a vastly successful and highly competitive brand and is continually expanding further. 2. External Analysis 3.1 General Environment Analysis
The conditions of the general environment of an organisation have the potential to significantly influence its success. Pumpkin Patch is a part of the children’s fashion industry, which was likely to be influenced primarily by the economic, socio-cultural, and global segments of the general environment at the time the case was produced.
During the period that the case was produced, Pumpkin Patch markets were generally experiencing strong economic growth and many consumers had elevated discretionary income. These economic conditions would have been favourable for the retail segment in general. Heightened discretionary income levels would likely be favourable for children’s fashion retail in particular. Children’s fashion may be unlikely to be a high priority purchase in times of economic struggle, however when consumers have strong incomes they are likely to be less price sensitive and invest children’s fashion rather than mass produced, inexpensive clothes.
Socio-cultural trends are important to firms in the children’s fashion retail segment. At the time, societal focus on the environment and producing goods in an environmentally sustainable manner was just emerging and was beginning to have some relevance to firms within the retail segment. Social trends advocating the use of environmentally conscious production facilities and materials is a socio-cultural factor that would likely have be pertinent to firms within the fashion retail industry.
In terms of the global segment, the move towards global outsourcing was a relevant to trend for organisations
Pumpkin Patch is a high end children’s clothing company that was established in 1990 when founder Sally Synnott (former children’s wear buyer for Kmart) noticed a gap in the market for fashionable children’s clothing. Pumpkin Patch has developed a vastly successful and highly competitive brand and is continually expanding further. 2. External Analysis 3.1 General Environment Analysis
The conditions of the general environment of an organisation have the potential to significantly influence its success. Pumpkin Patch is a part of the children’s fashion industry, which was likely to be influenced primarily by the economic, socio-cultural, and global segments of the general environment at the time the case was produced.
During the period that the case was produced, Pumpkin Patch markets were generally experiencing strong economic growth and many consumers had elevated discretionary income. These economic conditions would have been favourable for the retail segment in general. Heightened discretionary income levels would likely be favourable for children’s fashion retail in particular. Children’s fashion may be unlikely to be a high priority purchase in times of economic struggle, however when consumers have strong incomes they are likely to be less price sensitive and invest children’s fashion rather than mass produced, inexpensive clothes.
Socio-cultural trends are important to firms in the children’s fashion retail segment. At the time, societal focus on the environment and producing goods in an environmentally sustainable manner was just emerging and was beginning to have some relevance to firms within the retail segment. Social trends advocating the use of environmentally conscious production facilities and materials is a socio-cultural factor that would likely have be pertinent to firms within the fashion retail industry.
In terms of the global segment, the move towards global outsourcing was a relevant to trend for organisations
References: Hanson, Dallas, Michael A Hitt, R Duane Ireland, and Robert E Hoskisson. Strategic Management Competitiveness and Globalisation . 4th ed. Melbourne: Cengage Learning Australia, 2011.