Billabong Example Essay


Billabong Foreign Limited (BBG) produces search wear, sports apparel and accessories to get the search, skate and snowboard marketplaces (Macquarie, 2012). The firm recorded a great 18. 4% decrease in




A$119. 1




(Billabong Shareholder Review 2010/2011). Following intense acquisition efforts, which usually saw Billabong buying over 11 brands (Appendix A), the company was forced to go through a major reorganization, rearrangement, reshuffling, closing one hundred and fifty stores and cutting 4 hundred jobs worldwide (AAP, Feb 2012). The report will be analyzing the Billabong company, specifically their surf wear in Australia, to distinguish the root crucial problems that must be dealt with. Current opportunities and dangers that Billabong can power on will be prioritized, after that weighed resistant to the firm's inner strengths and weaknesses to be able to increase sales. Solutions based on Billabong's mission of aiming to set fresh benchmarks through youthful way of living brands and experiences will be explored.

Scenario Analysis & Problem Identity

To identify the real key issues and opportunities that Billabong is definitely facing, a great analysis was conducted within the following five areas. Appendix B reveals the consolidated list of problems Billabong faces.

1 . Consumers (Appendix C)

The Customer Knowledge Cycle utilized to identify important opportunities just like improving the Purchase framework through higher interactivity with customers. Another opportunity was going to promote an eco-friendly method to remove used items while

increasing rewards.

installment payments on your Competitors and Context (Appendix D, Electronic & F)

A PEST examination of the Aussie market shows a market shift to the under -15s market (Euromonitor 2012), which has been an opportunity intended for Billabong to target. Using Porter's Five Makes (Appendix E), a Positioning Map and Competitor Risk Analysis (Appendix F) to analyse the boardsport market confirmed that competition coming from a few big surf brands was large and that every had a solid brand pursuing and highlighted the need to identify its products from them.

3. Firm (Appendix G)

The Well-balanced Scorecard was used to evaluate Billabong's efficiency. They had large brand knowing of 86% nationwide but a lower conversion rate of 46% (Billabong 2012), which reveals an opportunity to focus on those previously aware of Billabong.

4. Collaborators (Appendix H)

Billabong has yet to explore the opportunity to " unsource”, permitting customer collaborations in creating boardshorts. One more area to explore could be coopetition with search brands to tackle complications which impact the surf put on industr sumado a.

Through an prospect and risk matrix, the consolidated prospect lists of concerns were prioritized.

Opportunity Matrix

Threat Matrix

Those with the greatest probability of success and attractiveness inside the Opportunity Matrix and those with highest possibility of event and significance in the Risk Matrix were taken into consideration as key concerns. Those chosen were the most pressing problems that Billabong could address with a chance of success.

Key Issues/Opportunities

Key Aims

Undifferentiated search wear items

To produce a cool product line that may be

among opponents

not available by simply other surf wear brands

by 2013.

Low change rate inspite of high brand

To increase conversion rate to 52% and


company loyalty by 7% simply by 2014.

Browse wear is usually declining in popularity as a

To revive the popularity of browse wear as

form of everyday apparel as a result of increasing

everyday wear and increase revenue by 10%

availability of less costly alternatives

from the 34% of Active Way of living


Australians are progressively

To create an environmentally friendly

environmentally conscious

product range simply by end of 2012.

Moving demographics to under 15s

Create activities for customers under

15s to garner 50% brand awareness by simply


Option Scenarios & Implications

Solutions to the...