With the achievement of new stores opening, Kathmandu has proved its ability in new store launch. Accompanying with the new stores opening, the company profit will continually grow and it is aligned with shareholder value. However, potential failure and flows of capital would affect the company and its shareholders in the hort term. 3.
Optimizing its existing store footprint Enhance the presentation of its store to attract more customers and drive sales growth. (a) Suitability of the strategy * Better presentation of stores builds up Kathmandu's image as a fashion provider.I Suppliers I * Needs to maintain a better material fulfill system with Kathmandu. I Employees I * Personal skill needs to be enhanced. * May under a more rigorous and systematic work environment. I Communities I Promote the development of relevant industries.
I Customers I * A more convenient shopping channel. I This strategy is expected to improve sales efficiency and reduce the sales cost. Company can be able to provide more competitive price to their customers to ncrease sales which is a benefit to growth of shareholders' value. Part4 Proposals 4. 1 Continuing the store roll out in Australia and New Zealand Kathmandu should have decentralized distribution strategy of the new store.The existing stores are highly centralized on the major cities.
Thus, so the new stores would be located in the different new locations. Consequently, this strategy will give a broader reputation of our brand name and attract more potential customers. 4. 2 Optimizing its existing store footprint Kathmandu should provide discount strategy to the existing stores to attract more customers.
The company could provide different discount promotion to the target customers, such as large quantity discount, seasonal discount, cash discount, and promotional discount. By using this strategy, the company could provide more competitive price compare to other retailers. 4. Introducing new products Our strategy is to be the quality leader with value based pricing methods for the new beginning to sustain the high reputation of products with high technology. So the pricing strategy could be "skimming" the market.
Although it may sacrifice the high sales, but it will ensure the leader position of the products' reputation. 4. Continuing to develop its on-line capabilities This strategy could make Kathmandu's web site high visibility and participate in the virtual communities. This could exhibit the company's product to more potential customers as advertisement and web users could compare and comment on the company's products. This strategy will increase the on-line brand famous and create more value for shareholders.
