Strategic Management Analysis E-Commerce Strategic Management Analysis By Group 24

About The Company Founded by its namesake in 1993, Cath Kidston is a distinctive British brand best known for its vintage inspired prints and arrays of homeware and fashion products . Outstanding design, the brand is appealing instantly to the world. Rapid growth has encouraged the company to implement e-commerce, enabling better market responses. Cath Kidston is the British, interior decoration design company founded in 1993. Its signature is the colorful yet classic “Vintage” distinctive prints on homeware and fashion products. The design is seen to be truly British, and is very appealing to wide range of customers. From England, the brand reputation has spread to many European countries and it is now growing rapidly in Asia. Having rapid multi-channel expansion, the company is moving towards e-commerce for faster and better market responses.

SWOT Analysis Strengths Weaknesses No need of physical store No geographic limitations Low operation costs Lifestyle Store 24/7 No standing queues Specialisation Better customer service Robust supply chain management Virtual Quality No direct interaction Easily to compare and walk out Availability is essential Payment system is critical Delay in receiving goods Shipping cost can increase product cost Using the SWOT analysis, consequences of e-commerce implementation are; No need of physical store therefore no geographic limitation Online shop requires much lower operation cost, can be opened 24/7 and there is no standing queue Using internet cookies, customized displays can be configured therefore better customer services Moreover, real-time data networking provides robust supply chain management However, there are some weaknesses such as; Product quality maybe doubt There is no direct interaction therefore it is difficult to convince or sense customers’ postures System availability and security is critical Once order, customers have to wait for the goods to be delivered and the shipping cost can increase the total price

SWOT Analysis Opportunities Threats Global exposure/expanding Strong B2B networking Trend towards internet shopping Privacy concerns Counterfeit Parallel import Great opportunities that make ecommerce very appealing are; It supports global expansion, B2B networking and internet shopping is a fast growing trend worldwide The possible threats that the company should consider are; Privacy concerns, counterfeit and parallel imports.

Threat of Substitution Five-Forces Analysis Supplier Power Low Buyer Power Low Competitive Rivalry Medium Threat of Substitution Cath Kidston’s current supplier is a Chinese manufacturer (Shenzhen Yichuang). It is easy to switch to another supplier in China where there are numerous choices and cost is low. It may be easy for customers to buy homeware products from other companies such as Ikea, Argos or local shops. But Cath Kidston offers unique design with guaranteed quality (28 days return) that competitors do not have in common. Moreover, the company has good reputation and customer loyalty. Even though there are many companies offering homeware and fashion products, Cath Kidston’s distinctive design positions itself away from competitors therefore no close rivals or substitutions. Medium Threat of New Entry Medium

Key Strategic Decisions ‘s Blue Ocean Vintage, Colorful Prints Durable, Branded Products Signature Design + + The strategy that makes Cath Kidston stand out is the Blue Ocean. Kidston puts her unique design vintage colorful prints on good quality homeware and offer affordable prices. Unlike others, Kidston believes product style should match the user’s preference. Therefore her baby care kits are design for mother’s fashion taste, teenager camping tents have youth style printed, coffee mugs look different for mum, dad, son and daughter. Quality, Fashionable, Affordable, Unique

Key Strategic Decisions ‘s Blue Ocean These are some examples of Cath Kidston products.

Key Strategic Decisions Global Strategic Decisions Products offered Geocentric Schema Markets Worldwide Entering Strategy Foreign Direct Investment Going global, there are four main strategic decisions to consider Products to be offerred, markets, entering strategy and speed of entry. Kidston decided to offer the same product range in all countries. Even though target markets for physical stores are now mainly the UK, Japan and South Korea. However, Cath Kidston expects its e-commerce to expand customer base throughout the world. Cath Kidston considers the timing right when entering new markets. The company does marketing research to find out the right place and time. Speed of Entry Timing Right

Implementation Challenges Political Regulations, Control & Tax Policy Economic Pricing, Exchange rate, Credit Availability Sociological Language, Trends & Preferences Using PEST analysis, implementation challenges Cath Kidston would have to face would be… Political issues such as regulations and taxing Economic issues such as pricing and exchange rate Sociological issues such as languages and culture trends Technological such as system compatibility and delivery methods available. The company has to consider these factors when planning pricing, marketing and advertising strategies. Technological System Flexibility & Compatibility, Logistic & Delivery

Conclusion Cath Kidston has implemented e-commerce system to support its rapid market expansion. E-commerce provides considerable advantages leading to significant costs saving, better customer services and business operations. E-commerce has some drawbacks, but those can be overcome with little efforts.

Recommendations More product pictures FAQ & Customer Voice Trust Ensuring Messages Brand Loyalty Reinforcement From the SWOT and 5-Forces analysis my colleagues discussed earlier, the group is hereby suggesting Cath Kidston to strengthen the weaknesses by; First, Display More Product Pictures – including customers’ uploads to provide better details of product quality Second, Add FAQ & Customer Voice sections– to provide basic answers as well as space for customers to share ideas and experiences Third, Add Trust Ensuring Messages – to ensure quality and safety i.e. material durability, personal info secured, payment secured Fourth, Implement Brand Loyalty Reinforcement programs – such as “My Cath Kitchen” to build image and attach customers’ feelings that no other brands do Fifth, Offer Promotions & Campaigns – e.g. free delivery on order over £30, on birthday or special occasions And Sixth, Use more Social Media & Mobile Technology – to enable wider customers’ words of mouth i.e. Instagram, Pinterest and more mobile support functions i.e. QR code, Cath Kidston theme or applications (photo decoration, wallpaper, icons, etc.) Promotions & Campaigns Social Media & Mobile Technology

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