Billabong five forces

By increasing the switching cost for the customers.

Billabong Analysis

Difference in oragnisational culture and practices on different regions are their major concerns. These strategies are classified as market penetration, market development, product development and diversification. The weakness as faced by Billabong is mainly in terms of higher transportation cost, and the positioning strategy has also weakened because it is perceived differently by its customers because of its sea side promotions.

They want to buy the best offerings available by paying the minimum price as possible. The product and positioning of Billabongs products is the most important element in its marketing mix as it ensures the long term survival of the company and continued high sales.

More Essay Examples on Marketing Rubric 2. A combination of an interactive website, promotional magazines and flyers, personal in store selling and strong public relations through both sponsorship of sporting events and famous athlete using Billabong products have generated a strong brand images amongst its industry.

Billabong Analysis Essay

Identifying customer tastes were depends on various types of traditions and cultures. Even though it is difficult to identify comprehensive characteristics of this industry, the majority of consumers are males and females who are aged between 14 and One of the lessons Billabong International Limited can learn from Wal-Mart and Nike is how these companies developed third party manufacturers whose business solely depends on them thus creating a scenario where these third party manufacturers have significantly less bargaining power compare to Wal-Mart and Nike.

Overall profit performance is showing a negative sign and the firm have experienced shrinking sales and rising debts. It started an above average profitability operations in Argentina and made strong returns in years.

InBillabong adapted video conference technology in order to make the communication and exchange of ideas across the world for its overseas offices easier.

Global expansion supported the extension product life cycle for numerous products and easier access to resources and technology. By understanding the core need of the customer rather than what the customer is buying. Difference in oragnisational culture and practices on different regions are their major concerns.

Billabong International Limited Porter Five Forces Analysis

Billabong uses Hong Kong as the central sourcing division to provide most of its products to Australia and New Zealand. The strong dollar position and strong demands for clothing at global level has been highly promising to Billabong. In order to perform Billabong International Limited effectively, the board of directors are structured into six non-executive directors, two executive directors and the chairman who are responsible for the shareholders of Billabong.

Threats of Substitute Products or Services When a new product or service meets a similar customer needs in different ways, industry profitability suffers. Customers often seek discounts and offerings on established products so if Billabong International Limited keep on coming up with new products then it can limit the bargaining power of buyers.

However, to the global extent, consumers are likely to find other tailors which would provide products that would be cheaper than existing ones. Billabong uses Hong Kong as the central sourcing division to provide most of its products to Australia and New Zealand.

Furthermore, by working in more than countries obtained cushion impacts of the entry of a new competitor and economic cycle into any of their industries.

Billabongs sponsorship of international sporting events and sporting stars also helps to promote their brand not only in Australia but also on the international market as well.

Billabong gains customer satisfaction by offering quality products that is not vulnerable or ruined easily despite the harsh conditions of many of their products intended uses, such as swimmers, skis and snowboards.

Billabong has been successful in making brand images by appealing as an internationally known for professional surfing, and through its wave logo and sponsorship of international events.

Billabong Analysis

E-commerce has simplified the logistical and oragnisational difficulties when operating a global business.

Because of this Billabong has adopted an exclusive distribution network where the product is only available in specialty surf shops. By rapidly innovating new products. Therefore, it will better resonate with age group 25 to 39 years old who have built careers and gained stronger buying power.

Supplier power is lower because of existence of large number of sellers and finally, the threat of substitute is lower, as consumers have no alternatives to clothing.

When these consumers grow older, they will be pleased to see Billabong to provide expanded casual-line offering to meet their new needs. Furthermore, by working in more than countries obtained cushion impacts of the entry of a new competitor and economic cycle into any of their industries.

Billabong International Limited Porter Five Forces & Consumer Durables & Apparel industry analysis at just $11 per douglasishere.com Five Forces Analysis is a strategic management tool to analyze industry. Strategic Analysis of Billabong Home» PORTER Five Forces Analysis of Billabong.

Billabong is an Australian clothing company that is concerned with the production of clothing related products and its accessories, and the clothing industry analysis is performed as follows.

Billabong’s sports image has long been entrenched in consumers’ mind especially among teens and youths. Achieve market share at 0. % by year 2. Hence Billabong CaChic will adopt a focused differentiation strategy to approach a niche target segment of Australian consumers/5(1).

– Porters Five Forces The Competition Since s, there was a significant rising popularity of the beach and surfing, and then three major companies (Billabong, Quicksilver and Rip Curl) have become a symbolic of surfing.

Billabong International Limited Porter Five Forces Analysis

As Porter's 5 Forces analysis deals with factors outside an industry that influence the nature of competition within it, the forces inside the industry (microenvironment) that influence the way in which firms compete, and so the industry’s likely profitability is conducted in Porter’s five forces model.

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Billabong five forces
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Billabong International Limited Porter Five (5) Forces & Industry Analysis [Strategy]