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SWOT analysis - Essay Example

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SWOT analysis

Kathmandu Holdings Limited is an organisation committed to providing quality clothing and equipment for travel and adventure through its operated company stores. The major strength of the organisation lies in its capability to develop its brand and value which are satisfactory to the customer. This is a result of its vertically integrated business model which gives it control of its brand and products. This also allows it to achieve both a wholesale and retail margin.
The major notable weakness for Kathmandu is that its success is over reliant on its reputation and branding. Unexpected issues can damage this reputation which is a weakness since there are no measures in place to counter this development should it happen.
The opportunity for the company is that it has a network of company operated retail stores which makes it easy to gather information about the needs and wants of the customers. The other opportunity is that it has significantly invested in its IT systems to support its future growth plans. The other opportunity is that the organisation is strategically positioned to deliver attractive financial results to its shareholders and it allows public investors the opportunity to invest in business successfully. Its stance on brand awareness is another opportunity behind its success story in the market for outdoor travelling clothes and equipment.
Likewise, this organisation does not operate in isolation from other firms. Of significant importance in this case is damage to Kathmandu’s brand as well as aggressive competition. This makes it a bit challenging for the organisation to maintain its competitive advantage as well as its dominance in the market with regards to the quality of its products that have greatly contributed to its success over the last years. The other threat is the risk associated with investing in the stock market generally where the management may not be able to ...Show more

Summary

A SWOT analysis is a useful instrument for helping managers to identify internal strengths and weaknesses of a business and external opportunities and threats facing it,” (Strydom J. p 31). Basically, SWOT stands for strengths (S), weaknesses (W) while on the other hand the…
Author : vrobel
SWOT analysis essay example
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