Comparative Analysis of Kogan Company and Goldstar Shoes

The presentation provides a comparative analysis and the contrast of both the companies about their external factors. It focuses on giving an overview of the strategies of both the companies.

Task 2- Marketing is an
international environment

Table of contents
 Competitive Frame of reference
 Comparative analysis
 Thesis
 Organizational Scheme
 Market selection of the companies
 PESTLE analysis of the companies
 Risk factors
 Recommendations
 Conclusion

Introduction
The presentation provides a comparative
analysis and the contrast of both the
companies about their external factors. It
focuses on giving an overview of the
strategies of both the companies.

Competitive Frame of reference
 The Kogan company deals with online retail section
 The company provides multiple services and products at a low
price to its consumers
 Products such as footwear, groceries, apparels and many more
 Goldstar shoes is a major producer of shoes in Nepal which offers
clothing, gear and athletic footwear
 Where Kogan Company is offering various products to its
customers, Goldstar is limited to its shoe product.

Kogan Company 1HFY18 Gross
Profit Mix 1HFY18 GROSS PROFIT MIX
Exclusive brands Global Brands Partner Brands Mobile Travel Insurance Other Income

Comparative analysis
 According to the statistics of Kogan, the company
has made 45.1% more sale in the Australian market
 The statistics of Goldstar shoes states that it made
30% more sale in the year 2017
 Thus, it is observed that Kogan made more profit
as compared to Goldstar shoes in the market.

Thesis
 The Kogan Company focuses on providing a high standard of
products that are reasonable as well as acceptable within the
market.
 Goldstar shoes not only offers its customers a high standard
and affordable cost but also durability.
 Kogan Company aims to provide best quality services and
satisfaction to its customers
 Goldstar ensures its customers with consistency and good
quality.

Organizational scheme
 The Kogan Company is dealing with an issue of the
traditional organizational structure which does not
match with the current business strategy
 Goldstar shoes have decided to implement advanced
designs as well as modern trends with the changing
business strategies
 Also, the company is focusing towards promoting the
home-made brands of Nepal

Market selection of the companies
 The primary target of the Kogan Company is to enter the
China Market
 Because of advancement in resources and technology
 Goldstar shoes aim to enter the market of Australia
 Due to the fact as Australia comprises of diverse traditions as
well as culture

Psychographic segmentation and
product range
 It involves the Division of the concerned market segments on
the basis of various personalities, traits, values, lifestyle and
interests of people.
 It helps in getting engaged in the concerned product design as
well as marketing in a focused manner.
 Gold star Shoes product ranges being used are men’s shoes,
women’s shoes and sports and travel shoes.
 The product range that are used for Kogan includes different
electronic appliances, audio, cameras and different electronic
products.
 The prices differ for each of the products used by both of
these countries.

PESTLE analysis of the companies
PESTEL analysis is carried out in order to find the external
factors that are affecting both the companies within the
market. Various factors such as the political, legal,
economic, social and environmental factors affecting the
organizations. The comparison of these factors of how it
puts an impact on the company’s growth will be discussed
further.

Economic factors
 Kogan Company determines the Inflation rate of China
and Gross Domestic Product
 The advantage of Kogan in China is the low cost of
labor
 Goldstar shoes depend upon the economic conditions
which offer athletic gear, footwear, and clothing
 The strength of Goldstar is providing the durable quality
as well as cheapest product

Inflation rate in Nepal from 2012 to 2022
 The inflation rate was 8.31% in the year 2012
 It decreased by 3.83% in the year 2017 and came up to 4.48%
 It is expected that the inflation rate will become 5.5% by the year 2022
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
0
2
4
6
8
10
12
8.31
9.78
9.04
7.21
9.93
4.48
6 5.8 5.5 5.5 5.5

Political factors
 The political system of China is determined to be
stable
 Kogan could easily make an entry into the China
market due to this stability
 The change in the government policy affects the
Goldstar shoes
 This will make difficult for Goldstar to enter into the
Australian market
 Goldstar is trying to adopt the free trade policies

Social factors
 For Kogan Company shared values plays a vital role
 China’s social culture is encouraging and supportive
 Kogan Company has chances to be readily acceptable within
the market
 Social factors are affecting Goldstar shoes
 The company is attempting to target the people of Asian
countries of all ages
 There are chances to adopt new strategies

Technological factors
 Kogan Company has implemented technology in the organization
 The applied technology is bringing advantage to the Kogan
Company
 Advancement in the distribution and retailing system
 Meanwhile, Goldstar needs to implement the technologies in the
organization
 Due to advancement in technology, Goldstar faces challenges from
its competitor's
 Chances of incorporation of the mobile technologies

Legal factors
 Kogan needs to consider the legal policies and rules of
China
 The laws of China are found to be strict
 Strict laws related to copyright, patents, and e-commerce
 Whereas, legal factors affect Goldstar shoes
 The business laws are the significant threat for the company
 The company is likely to enhance its protection measures

Environmental factors
 Kogan Company needs to understand the
standards of the China market
 Kogan needs to introduce the eco-friendly product
as used by China
 While Goldstar gets opportunities to enhance the
scheme of supportability and environmental
factors
 The company is likely to use these plans with the
considerable change in the environment

Risk factors
 Due to the old strategies Kogan company may face the pressure on the
workforce
 Environmental factors may affect the profitability and revenues of the
company
 Goldstar shoes may face problems due to the less advancement of
technology
 Need to understand the business laws to increase the company's
revenue
 Political factors may be the barrier for the company to enter the
Australian market

Recommendations
 Kogan Company must focus towards product packaging
 The advanced tool for promotion must be implemented
 The products must be delivered on time
 Goldstar must implement modern technologies
 Goldstar must introduce new products to its customers
 The company must follow the government policies
 Modify the products to satisfy the need of the customers

Conclusion
The comparative analysis and the contrast of both
the companies are provided based on the PESTEL
analysis. The comparison of the companies
helped to show the difference between the
companies in managing their business.

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