1、DemographicThere are about 18 million children who are under 15 years old and the population of children accounts for 30 percent of total population in the world. Childrens clothing has market potential. In addition, the company is organized into five operating segments, which include four geographi
2、cal regions where its retail chain operates and one wholesale/direct segment. Its geographical segments include Australia, New Zealand, United Kingdom and United States. Economic People from the four geographical regions have stable income and excellent social welfare. So they can afford the high pr
3、ice of childrens clothing. Social-culturalWith the development of social, incomes of people increase and parents would like to pay more money for their children in clothing. Consumption for children is becoming a more and more important part of social consumption. Political-legalGovernment does not
4、prohibit the development of childrens clothing industry. Moreover, government has strict requirement to the quality of childrens clothing. GlobalInternational sales and international expansion across retail and wholesale both improve development of this industry. Furthermore, internet also makes the
5、 company and the industry become global.TechnologyDesign of children clothing is more fashion and this requires high skilled technology. The production process is also more efficiency with high technology.2.2 Industry AnalysisThere is a gap in the market for fashionable childrens clothing in early y
6、ears. Pumpkin Patch was built as a vehicle to fill the gap through mail order. At that time, there were few catalogues for childrens wear or anything else. The demand far exceeded supply for the first few catalogues. The establishment of Pumpkin Patch got success and it has potential competency. In
7、addition, the company considers United Kingdom as its main market and United States is also its big market. Analyzing the Porter five forces model can help to improve the development of Pumpkin Patch.Barriers to entry are relatively low. Compared to other clothing industry, such as womens clothing,
8、childrens clothing has low entry barriers and positive investment perspective. The entry into childrens clothing industry has low capital requirement. However, requirement for quality of childrens clothing is relatively high and customers are loyal to Pumpkin Patch. Substitutes are childrens clothin
9、g from other companies. When Pumpkin Patch was first found, there was nobody else doing what Pumpkin Patch did. However, many childrens clothing companies are developed and substitutes are becoming more. Anyhow, threat of substitute products decrease due to its high quality.Buyer power is high becau
10、se they have negligible switching costs to go to substitutes. Moreover, buyers purchases are a significant portion of a suppliers annual revenues and buyers purchase a large portion of an industrys total output. Supplier power is low. The company builds many manufacture industries in Asia countries.
11、 Owing to the low price of labour, costs of manufacturing clothing decrease. The large number of suppliers makes suppliers have low bargaining power.Rivalry is relatively high because there are numerous or equally balanced competitors. The industry is likely to grow substantially in the future.2.3 C
12、ompetitor analysisThis is a big industry with many competitors. In New Zealand, Pumpkin Patch competed with discount retailers such as the Warehouse, department stores such as Esprit, which have childrens sections. Moreover, the closest competitor to Pumpkin Patch was JK which was found by former su
13、ppliers to Pumpkin Patch. In addition, JK located their stores close to Pumpkin Patch stores and competed on price. JK also followed Pumpkin Patch such as using same school, going to same print company, recruiting designers from Pumpkin Patch. JK worked as second mover of this industry and level of
14、rivalry between them is high. In Australia, competition came from discount retailers such as Target, Big W and Kmart. Furthermore, design of Pumpkin Patch must be really superb to compete with Next and Gap in United Kingdom. In United States, competitors are well established in the form of GapKids,
15、Gymboree and The Childrens Place.Overall, competitors pose a significant threat. Pumpkin Patch was still s tiny player by comparison to the likes of GAP, Benetton and Oshkosh. However, Pumpkin Patch is taking on those players with moves outside Australia and it will have large growth in the future.
16、In addition, competition also will be more intense as time goes on.2.4 Summary In conclusion, this is an attractive industry owing to the large demand of childrens clothing. Moreover, the unique styles and potential of growth and development both make this industry attractive.3 Internal 3.1 Resource
17、sPumpkin patch has wonderful finances because of initial pubic offering which raised $100 million valuing the company at $208 million. They not only invented effective software and information system to track products by sales, but also have a series of steps to control quality. Pumpkin patch finds
18、factories by agents to manufacture and it has a huge warehousing and distribution system to deal with these garments. Whatever in terms of retail, wholesale or direct sale, they all have pleasant financial results.It is reported that Pumpkin Patch has become the largest specialty childrenswear retai
19、ler in Australia in ten years and design high-quality childrenswear in New Zealand. It is obvious that Pumpkin Patch Brand is really popular among parents and is more than just a supplier of kids gear. Furthermore, Management Magazine gave the Business Ethics Award to it which improved the brand rep
20、utation and recognition. As a fashionable brand, design is important for a companys development. They have professional designers. A sixty-people team is under the leadership of Chrissy Conyngham who had worked in buying team and is fashion sensitive for picking designs.3.2 CapabilitiesA successful
21、enterprise can not thrive without outstanding capabilities. With stable financial support, Pumpkin Patch has the ability to expand more stores in four countries. It could reach adding 30 stores per year. Useful software and system can help company learn customers demands better. Cooperating with age
22、nts enables the smooth running of production. Firm can deal with requirements though huge distribution centre. Quality control program guarantees high quality products. Good reputation and recognition imply a huge demand and market share. Rich human resources allow company design more popular and od
23、d merchandises to satisfy different consumers. Various sales channels will lead to considerable economic benefits. 3.3 Core competenciesNot all capabilities are core competencies. Only that provides competitive advantage for a firm over its rival can be recognized as. As parents, they are most conce
24、rn about cloth quality their children wear. According to two levels of quality control (pre-production and post-production), all the components will be tested and experience 10 steps before garments take into production. They would arrange people check all sorts of quality inside the factories. Pump
25、kin Patch trained the shop staff to inspect the merchandise before displaying. They makes a promise that consumer can return goods at any time. Strict supervision ensures product quality which can both reassure buyers fear and worry and enhance the confidence of brand.In the premise of guaranteeing
26、quality, good design is one of attractions to people. They design merchandises in-house to reinforce the brand. Designer team will develop a product including conceptual artwork, style creation, product sourcing and quality control from different visual angles, such as buyers, merchandise planners a
27、nd production people. Utilizing of software and information system, they can learn what consumers need and want so that they can design garments markets would like. It is not the only source of collection messages. Members of design team shopped at the best design houses in the world to get ideas to
28、 create fashionable, fun and creative styles. Pumpkin Patch enjoys a high reputation in childrenswear industry. Company adheres to family value as organization culture. It is really nice of Pumpkin Patch to provide a crche and school holiday program at the Auckland head office which can lift employe
29、es worries. Thereby, they can fully dedicate to their jobs. This is a way to remain the employees due to most of them are part-time workers. Details of the department considerate and thoughtful reflect in each store where it has a play area for children who go shopping with their parents and boys an
30、d girls clothes have separated area.Resources Capabilities Core competencies Financial expansion Software and information systemlearn customers demands betterin-house design processesQuality control systemguarantees high quality productspre-production ;post-productionPhysical resources(factories)smooth running of productionWarehousing and distribution system deal with requirements from all marketsBrand reputation a huge demand and market sharebusiness Ethics Award(crche and school holiday program)HR (designers & manager)design vari
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