CX664801: Situational Analysis Report for Excelsior Clothing

This report presents a comprehensive situational analysis of Excelsior Clothing, a fashion retail organization based in Auckland, New Zealand. The analysis begins with an executive summary and table of contents, followed by an in-depth external review, encompassing industry trends, external factor...Read More

Running head: SITUATIONAL ANALYSIS
SITUATIONAL ANALYSIS
Name of the Student
Name of the University
Author Note

1SITUATIONAL ANALYSIS
Executive Summary
The discussion in the report is based on the case study that is related to an organization
named Excelsior Clothing. The internal and external environment based factors of the
organization have been analysed in the report in detail. On the other hand, the customers and
competitive environment of the company has also been discussed in detail. The report has
also been able to provide an analysis based on different factors that can further help in
formation of different objectives for the future operations of the company. The future
operations of the company are mainly based on the two major objectives that have been set
after analysis of the environment.

2SITUATIONAL ANALYSIS
Table of Contents
1. Introduction................................................................................................................2
2. External review..........................................................................................................3
Industry review...........................................................................................................3
External factors..........................................................................................................4
Customer analysis......................................................................................................5
Competitor analysis....................................................................................................7
3. Internal review...........................................................................................................8
Opportunities and threats...........................................................................................8
Strengths and Weaknesses.........................................................................................9
4. Conclusion................................................................................................................10
5. References................................................................................................................11

3SITUATIONAL ANALYSIS
1. Introduction
The external environment and industry in which an organization operates has an
impact on the levels of profitability and the revenues as well. The strategies that are
developed by the organization and the decision making based process is also affected by the
factors that are related to internal and external environment analysis. The internal
environment based factors of the organization can play a major role in the ways by which
different strategies can be developed in order to operate in a profitable manner (Anić, Mihić
& Kursan Milaković, 2018).
The report will be based on the case study of a clothing based organization named
Excelsior Clothing that has its origins in Auckland. The organization has recently started
selling the products to general consumers with the help of its website. Different products that
are offered by the organization to its customers include, tops, blouses, trousers, skirts and
jumpers. Various product lines that are offered by the organization are mainly based on retail
lines and different exclusive lines as well. The division of the organization that has been
considered for analysis is “Great Walking” (Barringer, 2015).
A marketing plan will be developed for the organization based on the case study that
has been provided and the external and internal environment analysis. The competitors and
customers of the organization will also be analysed in the report in detail. The competitive
advantage that can be developed by the organization in the fashion retail industry with the
help of its opportunities and strengths will be analysed in the report in detail. The situational
analysis based factors can help in the proper development of strategies of the company.

4SITUATIONAL ANALYSIS
2. External review
Industry review
As discussed by Binotto & Payne, (2017), the industry based on Clothing Retailing of
New Zealand has shown huge barriers which are based on entry of the new companies. The
costs which are thereby faced by the companies trying to enter the industry are based on the
wages which are provided to employees, rents and different purchases as well. The retail
space of the country is considered to be expensive or unavailable to the various new players
who have plans of entering the country. The barriers can sometimes be lower for the smaller
companies in comparison to the bigger organizations in the industry. The competition based
levels in retail industry are also high and different product ranges are related to the price,
quality and style.
As argued by Blaszczyk & Pouillard, (2018), the most important success factors
which are related to proper operations of the companies operating in the fashion retail based
industry are related to the ways by which stock on hand can be controlled and a clear position
can also be developed. The industry of fashion retail of New Zealand is mainly related to the
operations of different departmental stores and the retailers that operate only with the help of
online platforms. Various products which are thereby offered to the consumers with the help
of the fashion retail based industry are, men’s clothing, women’s clothing, children’s and
infant’s clothing.
As discussed in Ibisworld.com.au. (2019), the products that carry the label of “Made
in New Zealand” can make a huge level of difference on the industry. The high levels of
competitiveness that are present in the retail based industry can have a major impact on the
operations of an organization like, Excelsior Clothing. The fashion industry based in New
Zealand has generated revenues of three Billion Dollars in 2019.

5SITUATIONAL ANALYSIS
The revenue levels of the industry have been growing at the rate of 0.2% annually
from the year 2014 to the year 2019. The growth has been mainly fuelled with the help of
increase in the disposable income of consumers and their positive sentiments as well. There
has been a major shift in the behaviour of consumers towards the products and services that
are offered to them. The levels of spending of the consumers in the industry based on fashion
retail has also started increasing in the last few years (Ibisworld.com.au., 2019).
External factors
Political factors – The political factors of New Zealand have a huge influence on the
increase that has been shown in levels of uncertainty in industry of fashion retail. The
geopolitical events that have taken place in the country have affected the situation related to
law and order that can be managed by the government (Mahmood & Kess, 2015). Different
political changes which have taken in New Zealand in the last few years and development of
new rules and regulations have an impact on the organizations based on fashion retail. The
rates based on lending money in New Zealand are high and tax rates which are paid to the
government are also high. The various companies in the country are provided with freedom
based on business and trade (Caniato et al., 2015).
Economic factors – The economic situation that has been developed in New Zealand
is excellent and has a major influence on per capita related income. The rate based on the
products that are developed in New Zealand are considered to be quite economical and the
customers can afford to purchase the products. The sales and levels of profits that are gained
by the companies in New Zealand are influenced in an adverse manner by different economic
fluctuations which can take place (Ciasullo, Cardinali & Cosimato, 2018).
Technological factors – Different technological developments have an impact on
different operations of the fashion retail based companies. The factors that have affected the

6SITUATIONAL ANALYSIS
companies in New Zealand mainly include, IT, internet, globalization. Technological
developments in the country have started increasing the levels of online shopping in the
fashion retail based industry. Supply chain and customer services based activities can affect
the profitability of fashion based industry (Craik, 2015).
Legal or regulatory factors – The organizations which are a part of the fashion based
industry of New Zealand can face huge legal challenges from the legal factors and regulations
in the country. Ethics and compliance with different regulations are a major focus of
companies which have been operating in industry related to fashion retail. The laws that are
related to international trade have to be applied by companies for operating in retail industry
based on fashion. The corruption based levels in New Zealand society is reduced by
government and the international companies are welcomed and can operate in the country in
a profitable manner (Craik, 2017).
Cultural and social factors – The social system which has been formed by New
Zealand is wonderful and is highly dependent on different countries for the business based
activities. The demands that are related to the economic system of New Zealand are
consistent and various industries in the country are influenced by demand levels. The retail
industry based on fashion has been influenced by the support that is provided by the strong
banking related system. The fashion based choices made by consumers in New Zealand have
been affected by economic and social policies of the country (Crane, 2016).
Environmental factors – Ecological system of the country is based on high literacy
levels and is unique in nature as well. The manufacturing based process of organizations in
the industry have been influenced in a huge manner by environmental concerns that took
place. The reduction in levels of pollution is a major aim based on the operations of fashion
based organizations in the country (Dalziel et al., 2018).

7SITUATIONAL ANALYSIS
Customer analysis
The different products which are developed by the organization named Excelsior
Clothing are related to needs and demands of the consumers which include middle income
based consumers and high income level based consumers as well. The exclusive and
expensive product based lines of the company are related to different types of demands and
needs of the consumers. The provincial shops and big city based shops are able to cater to
needs of different high income level based consumers. The consumers of Excelsior Clothing
consist of both women and men as well (Dissanayake & Sinha, 2015).
The section related to apparel of the organization is able to offer different products
like, jumpers, trousers, tops, blouses, jackets and skirts. Some of the products of the
organization are sold on the product line named “Smart Apparel”. The online based platform
of Excelsior Clothing can fulfil needs and demands of different types of consumers in
comparison to the existing consumers. The products of Excelsior Clothing are able to offer
effective value proposition related to the premium pricing of the apparel based items. The
costs based on the manufacture of products are high and consumers have to provide high
prices (Geare & Stablein, 2017).
The fashion needs of the consumers in the industry are highly updated in nature. The
major criteria which is used by the customers in order to choose the products of a brand in
comparison to the others is related to the different stages of consumer decision making based
process (Ciasullo, Cardinali & Cosimato, 2018). The various stages that are a part of this
consumer decision making process include, recognition of the needs, information gathering,
evaluation of the alternatives, purchasing the products and evaluation after the purchase. The
expensive and exclusive products which are provided to consumers by the organization that
are a part of retail based industry of New Zealand are high in demand (Green & Kaiser,
2017).

8SITUATIONAL ANALYSIS
The stores which are based on high value are mainly used for purchase by the high
income based consumers are considered to be an important part of New Zealand fashion
industry. The services that are offered to consumers in fashion industry of the country are
able to influence the ways by which the organizations in the country can operate. The process
related to buying of the consumers are based on different high class related stores if the
company that have been formed in various parts of the country. The online services which are
being developed by Excelsior Clothing should not affect the relationship that has been
developed with the retail consumers (Guercini & Runfola, 2016).
Competitor analysis
The products that are provided by Excelsior Clothing under the brand name of “Great
Walking” have been considered in case study. The product based range that has been
developed by the organizations like, Ice Breaker, MacPac and Kathmandu Fashion have
provided major competition to Excelsior Clothing. The companies have provided high levels
of competition to the organization are related to the sports and adventure based products that
are offered to the consumers. These organizations can be considered to be the current
competitors of Excelsior Clothing in the industry (Johnson et al., 2015).
The potential competitors on the other hand can be those organizations which can
enter the fashion retail industry of New Zealand. A separate consumer base can however be
developed by the organization in the fashion industry with the help of usage of different types
of materials for different products. The competitors are however able to affect the revenues
and levels of profitability of the organization in the fashion industry. The loyal and huge
customer base which has been developed by an organization like Kathmandu Fashion has
been able to affect the profitability of new companies that enter the industry (Kasemsap,
2016).

9SITUATIONAL ANALYSIS
The marketing related efforts that have been undertaken by Kathmandu Fashion are
mainly related to the development of different digital platforms in an effective manner. Social
media related strategy which is implemented by the organization can increase the levels of
revenues in the fashion retail industry. The organization has been able to develop an effective
communication process with the consumers by using different social media related platforms.
Social media based pages of Kathmandu Retail Fashion are able to play a major role in the
development of revenues of the organization. The most important point of the difference
related to the products that can be offered by Excelsior Clothing is based on the materials that
are used for the manufacturing process (Kelsey, 2015).
The name of the brand is also unique in nature and is based on the different demands
and needs of the consumers who are a part of the fashion retail industry. The products can
play a major role in the fulfilment of demands of different consumers of the retail industry.
The competitive environment of New Zealand fashion retail industry is considered to be an
important factor that has an impact on the operations of Excelsior Clothing (Guercini &
Runfola, 2016).
3. Internal review
Opportunities and threats
Opportunities –
 The experiences that are provided to the consumers can be improved and
Excelsior Clothing has a major opportunity to do this. The online based
operations of company can help in increasing the profitability of fashion retail
industry. The customer base of retail industry has been formed by the
company and can be managed by Excelsior Clothing along with the new
customer base of the organization (Geare & Stablein, 2017).

10SITUATIONAL ANALYSIS
 The various investments which can be made by the company related to
marketing and promotion based activities can play a key role in reaching the
consumers within less amounts of time. The stability of financial condition of
Excelsior Clothing is also a major opportunity that can be used by the
organization in order to increase the levels of profitability. The organization
will be able to increase the levels of investments that have already been made
on advertising based activities (Green & Kaiser, 2017).
 The effective expansion of retail channels and the activities related to
distribution can be another major opportunity to be used by the organization.
The consumers in the industry can also increase in an effective manner with
the help of supply chain and retail based distribution channels of Excelsior
Clothing (Dissanayake & Sinha, 2015).
Threats –
 The competitive threats in fashion retail industry have started increasing in the
last few years. The company has faced the largest levels of threats from
Kathmandu Fashion. The products that are provided to the consumers by the
competitors are major threats (Caniato et al., 2015).
 The different regulations which are a part of New Zealand Fashion industry
can affect the revenues of Excelsior Clothing. The company will have to
develop product and operations based on proper compliance with different
regulatory requirements.
 The costs which are based in raw materials of the company have started
increasing and the manufacture of products have been affected. The
production facilities of the organization can be developed in different
countries like, China and Malaysia (Kelsey, 2015).

11SITUATIONAL ANALYSIS
Strengths and Weaknesses
Strengths –
 The various brands which are offered under the brand names of Excelsior
Clothing can cater to needs of consumers that are different from each other.
The company can use the loyal customer base in order to maintain and
improve its position in the fashion retail based industry (Caniato et al., 2015).
 The materials which are used by the organization in manufacture of various
products mainly include, merino and alpaca fibre. The usage of unique raw
materials plays a major role in the proper development of its image in the
fashion retail industry (Li et al., 2016).
 The online operations of Excelsior Clothing can have a major impact on the
position of the company. The company has aimed in the development of its
unique product line that is related to adventure and sports related activities
(Dissanayake & Sinha, 2015).
Weaknesses –
 The proper development of production based plants in various countries can
reduce the speed of operations of the company. The delivery of products can
also be delayed in the process.
 The prices based on different products are high and affects target consumer
base of the organization in a negative manner (Blaszczyk & Pouillard, 2018).
 The company has catered to different needs of retail based consumers in the
years of the operations. The proper formation of online operations of Excelsior
Clothing is considered to be quite tough (Anić, Mihić & Kursan Milaković,
2018).

12SITUATIONAL ANALYSIS
4. Conclusion
The report can be concluded by stating that the organization named Excelsior
Clothing has been operating in the industry for a long time. The organization will be able to
continue its profitable operations in the fashion retail based industry of New Zealand with the
help of introduction of the new product lines. The online operations of the organization are
able to play a key part in the methods by which the company can enhance its place in the
industry. The products that will be offered by Excelsior Clothing under the brand name of
“Great Walking” can increase levels of profitability and revenues in the fashion industry of
New Zealand. The internal and external environment of the company has been able to play a
main part in the decisions and strategies that are developed. The competitive environment and
customers of the company are able to play a key part in the strategies that are developed by
Excelsior Clothing.
The two major objectives of Excelsior Clothing for the next six months are as follows,
The organization aims at increasing the revenues and levels of profitability
based on the online operations of Excelsior Clothing. The company can
increase revenues with the sales of different types of products with the help of
its online based platforms. The increase in levels of revenues of the company
will be able to play a major role in maintaining the long term based operations
of Excelsior Clothing in the apparel based industry.
Excelsior Clothing can increase the customer base on the middle income based
group with respect to the products that are offered to them with the help of
online platforms. The organization will be able to enhance its reach in an
effective manner with the help of different types of consumers who belong to
high income based customers who are a part of the retail stores. The
enhancement of customer base is considered to be a major part of Excelsior

13SITUATIONAL ANALYSIS
Clothing is able to offer its products to different types of customers in the
apparel based industry.

14SITUATIONAL ANALYSIS
5. References
Anić, I. D., Mihić, M., & Kursan Milaković, I. (2018). Antecedents and outcomes of fashion
innovativeness in retailing. The Service Industries Journal, 38(9-10), 543-560.
Barringer, B. R. (2015). Entrepreneurship: Successfully launching new ventures. Pearson
Education India.
Binotto, C., & Payne, A. (2017). The poetics of waste: Contemporary fashion practice in the
context of wastefulness. Fashion Practice, 9(1), 5-29.
Blaszczyk, R. L., & Pouillard, V. (Eds.). (2018). European fashion: The creation of a global
industry. Oxford University Press.
Caniato, F., Crippa, L., Pero, M., Sianesi, A., & Spina, G. (2015). Internationalisation and
outsourcing of operations and product development in the fashion
industry. Production Planning & Control, 26(9), 706-722.
Ciasullo, M. V., Cardinali, S., & Cosimato, S. (2018). Exploring sustainable behaviour in
international footwear supply chain management. International Journal of Business
and Globalisation, 20(3), 416-436.
Craik, J. (2015). Challenges for Australian fashion. Journal of Fashion Marketing and
Management, 19(1), 56-68.
Craik, J. (2017). Fashioning Australian: Recent Reflections on the Australian Style in
Contemporary Fashion. Journal of Asia-Pacific Pop Culture, 2(1), 30-52.
Crane, D. (2016). The puzzle of the ethical fashion consumer: Implications for the future of
the fashion system. International Journal of Fashion Studies, 3(2), 249-265.

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Dalziel, P., Saunders, C., Tait, P., Saunders, J., Miller, S., Guenther, M., ... & Driver, T.
(2018). Rewarding responsible innovation when consumers are distant from
producers: evidence from New Zealand. International Food and Agribusiness
Management Review, 21(4), 487-504.
Dissanayake, G., & Sinha, P. (2015). An examination of the product development process for
fashion remanufacturing. Resources, Conservation and Recycling, 104, 94-102.
Geare, A., & Stablein, R. (2017). Human resource management in New Zealand. Human
Resource Management on the Pacific Rim: Institutions, Practices, and
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Green, D. N., & Kaiser, S. B. (2017). Fashion and appropriation. Fashion, Style & Popular
Culture, 4(2), 145-150.
Guercini, S., & Runfola, A. (2016). How western marketers respond to the new middle class
in emerging market cities: The case of Italian fashion marketers. International
Business Review, 25(3), 691-702.
Ibisworld.com.au. (2019). Clothing Retailing – New Zealand Industry Research Reports |
IBISWorld. Retrieved from https://www.ibisworld.com.au/industry-trends/nz-market-
research-reports/retail-trade/clothing-retailing.html
Johnson, K. K., Lennon, S. J., Mun, J. M., & Choi, D. (2015). Fashion/clothing research: an
analysis of three journals. Journal of Fashion Marketing and Management, 19(1), 41-
55.
Kasemsap, K. (2016). Retail marketing strategies and brand management: A global retail
industry perspective. International Journal of Social and Organizational Dynamics in
IT (IJSODIT), 5(2), 66-78.

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Kelsey, J. (2015). Reclaiming the future: New Zealand and the global economy. Bridget
Williams Books.
Li, W. Y., Chow, P. S., Choi, T. M., & Chan, H. L. (2016). Supplier integration, green
sustainability programs, and financial performance of fashion enterprises under global
financial crisis. Journal of Cleaner Production, 135, 57-70.
Mahmood, S., & Kess, P. (2015). An assessment of the organization of demand supply chains
in the fashion industry. In Managing Intellectual Capital and Innovation for
Sustainable and Inclusive Society: Managing Intellectual Capital and Innovation;
Proceedings of the MakeLearn and TIIM Joint International Conference 2015 (pp.
487-498). ToKnowPress.