BUS30009 - External Environment Analysis of Push Luggage Bag Report

This report presents an external environment analysis of the 'Push' luggage bag, examining its competitive landscape and strategic position within the Australian market. The analysis employs the 3I's competitor analysis framework, categorizing competitors into immediate, impending, and invisible segments to assess competitive pressures. It identifies key players like Samsonite and VIP Industries as immediate competitors, smaller technology manufacturers as impending threats, and large brands diversifying their product lines as invisible competition. The report also conducts a SWOT analysis, highlighting the luggage bag's strengths (e.g., effortless travel, high-quality maneuverability), weaknesses (e.g., seasonal demand, new establishment), opportunities (e.g., innovative designs, high demand), and threats (e.g., imitated luggage bags, changing consumer demand). The report concludes by emphasizing the importance of continuous research and development to maintain a competitive edge in the market. The analysis is based on the BUS30009 assignment brief, which focuses on introducing the 'Six' luggage bag into the Australian market. The report is supported by references to academic research and industry reports.

Running head: EXTERNAL ENVIRONMENT ANALYSIS OF PUSH LUGGAGE BAG
External Environment Analysis Report of ‘Push’ Luggage Bag
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1EXTERNAL ENVIRONMENT ANALYSIS OF PUSH LUGGAGE BAG
Table of Contents
1. 3I’s Competitor Analysis.............................................................................................................2
2. SWOT Analysis...........................................................................................................................3
References........................................................................................................................................5

2EXTERNAL ENVIRONMENT ANALYSIS OF PUSH LUGGAGE BAG
1. 3I’s Competitor Analysis
3I’s competitor analysis framework employed for evaluating competitors of ‘Push’
luggage bags offers a detailed overview by means of grouping competitors into three segments
such as immediate, impending and invisible competition (Caber, Albayrak and İsmayıllı 2017).
 Immediate Competition: The immediate and strong competitors of ‘Push’ luggage bags
include Samsonite, Eagle Creek and VIP Industries Limited that are involved in
developing luggage bags with innovating designs as per consumer preferences. These
companies can offer fierce competition to ‘Push’ luggage bags as they are renowned
among consumers and all their luggage bags have very strong presence in the Australian
markets (Gürel and Tat 2017).
 Impending Competition: The impeding competition can be faced by the ‘Push’ luggage
bags from the smaller technology manufacturers that are constantly emerging in the lower
cost regions of Australia. Local luggage bag manufacturers in Australia can pose threat to
the new technology and luggage bag designs introduced by ‘Push’ luggage bags as they
can develop imitable luggage bags at low costs within a very short timeframe (Gürel and
Tat 2017).
 Invisible Competition: Invisible competition for ‘Push’ luggage bags can come from
large brands existing within the Australian market that can consider diversifying their
product lines and can chose to vertically integrate for decreasing their business expenses
or risks. Such risks of invisible competition can come from renowned brands such as
Lacobra, BTW Group of Companies and Bajaj Consumers Group (Phadermrod, Crowder
and Wills 2019).

3EXTERNAL ENVIRONMENT ANALYSIS OF PUSH LUGGAGE BAG
In order to attain competitive edge in the fierce competitive environment, ‘Push’ luggage bags must
consider making regular investments in research and development for ensuring availability of
new luggage bag designs and maintain high degree of such developments so that its offerings are
always unique and fresh in the market.
2. SWOT Analysis
Strengths
 The push luggage bag is designed in a
way that it offers effortless travel
experience to consumers
 High quality maneuverability with
enhanced leverage that can smoothly
conquer any terrain (Gürel and Tat
2017)
 Super spacious as the design is made of
polycarbonate shell that facilitates
consumers in optimizing the internal
volume
 Push luggage bags come with superior
rolling quality that comes with a
lifetime warranty as it is tested in real-
life overuse
 Tough and durable
Weaknesses
 Seasonal demand
 Low sales in the initial few months as
the luggage bag company is a new
establishment
 Unexpected shortage related with raw
materials
 Lot of competitors existing within the
market that comes up with innovative
push luggage bag designs (Kickstarter
2019)
 Difficulty to plan for all the unforeseen
circumstances including economic and
political events which might delay
production or delivery of this product
that requires development of effective
contingency plans

4EXTERNAL ENVIRONMENT ANALYSIS OF PUSH LUGGAGE BAG
Opportunities
 Introduction of innovative push
luggage bags each year
 High demand as every individual has
the need for luggage bags (Phadermrod,
Crowder and Wills 2019)
 High demand during the festive seasons
 High demand among regular travelers
 The push luggage bag can be developed
and introduced in the market with
increased customization as per
changing needs of customers
Threats
 Existence of imitated luggage bags
locally available
 Increased rivalry among the
competitors existing within the market
 High tendency to purchase low quality
raw materials ford making push
luggage bags
 Changing demand and fashion sense of
consumers (Phadermrod, Crowder and
Wills 2019)

5EXTERNAL ENVIRONMENT ANALYSIS OF PUSH LUGGAGE BAG
References
Caber, M., Albayrak, T. and İsmayıllı, T., 2017, April. Analysis of congress destinations'
competitiveness using importance performance competitor analysis. In Journal of Convention &
Event Tourism (Vol. 18, No. 2, pp. 100-117). Routledge.
Gürel, E. and Tat, M., 2017. SWOT analysis: A theoretical review. Journal of International
Social Research, 10(51).
Kickstarter., 2019. The SIX: Carry-on Luggage You Effortlessly Push Forward. [online]
Available at: https://www.kickstarter.com/projects/netta/the-six-a-carry-on-you-always-push-
forward [Accessed 10 Aug. 2019].
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management, 44, pp.194-203.