1. Strategic Management Analysis
E-Commerce
Strategic Management Analysis
By Group 24

2. About The Company
Founded by its namesake in 1993, Cath Kidston is a distinctive British brand best known for its vintage inspired prints and arrays of homeware and fashion products .
Outstanding design, the brand is appealing instantly to the world. Rapid growth has encouraged the company to implement e-commerce, enabling better market responses.
Cath Kidston is the British, interior decoration design company founded in 1993.
Its signature is the colorful yet classic “Vintage” distinctive prints on homeware and fashion products.
The design is seen to be truly British, and is very appealing to wide range of customers. From England, the brand reputation has spread to many European countries and it is now growing rapidly in Asia.
Having rapid multi-channel expansion, the company is moving towards e-commerce for faster and better market responses.

3. SWOT Analysis Strengths Weaknesses No need of physical store
No geographic limitations
Low operation costs
Lifestyle Store 24/7
No standing queues
Specialisation
Better customer service
Robust supply chain management
Virtual Quality
No direct interaction
Easily to compare and walk out
Availability is essential
Payment system is critical
Delay in receiving goods
Shipping cost can increase product cost
Using the SWOT analysis, consequences of e-commerce implementation are;
No need of physical store therefore no geographic limitation
Online shop requires much lower operation cost, can be opened 24/7 and there is no standing queue
Using internet cookies, customized displays can be configured therefore better customer services
Moreover, real-time data networking provides robust supply chain management
However, there are some weaknesses such as;
Product quality maybe doubt
There is no direct interaction therefore it is difficult to convince or sense customers’ postures
System availability and security is critical
Once order, customers have to wait for the goods to be delivered and the shipping cost can increase the total price

4. SWOT Analysis Opportunities Threats Global exposure/expanding
Strong B2B networking
Trend towards internet shopping
Privacy concerns
Counterfeit
Parallel import
Great opportunities that make ecommerce very appealing are;
It supports global expansion, B2B networking and internet shopping is a fast growing trend worldwide
The possible threats that the company should consider are;
Privacy concerns, counterfeit and parallel imports.

5. Threat of Substitution
Five-Forces Analysis
Supplier Power
Low
Buyer Power
Low
Competitive Rivalry
Medium
Threat of Substitution
Cath Kidston’s current supplier is a Chinese manufacturer (Shenzhen Yichuang). It is easy to switch to another supplier in China where there are numerous choices and cost is low.
It may be easy for customers to buy homeware products from other companies such as Ikea, Argos or local shops. But Cath Kidston offers unique design with guaranteed quality (28 days return) that competitors do not have in common. Moreover, the company has good reputation and customer loyalty.
Even though there are many companies offering homeware and fashion products, Cath Kidston’s distinctive design positions itself away from competitors therefore no close rivals or substitutions.
Medium
Threat of New Entry
Medium

6. Key Strategic Decisions
‘s Blue Ocean
Vintage,
Colorful Prints
Durable,
Branded Products
Signature Design + +
The strategy that makes Cath Kidston stand out is the Blue Ocean.
Kidston puts her unique design vintage colorful prints on good quality homeware and offer affordable prices.
Unlike others, Kidston believes product style should match the user’s preference. Therefore her baby care kits are design for mother’s fashion taste, teenager camping tents have youth style printed, coffee mugs look different for mum, dad, son and daughter.
Quality, Fashionable, Affordable, Unique

7. Key Strategic Decisions
‘s Blue Ocean
These are some examples of Cath Kidston products.

8. Key Strategic Decisions
Global Strategic Decisions
Products offered
Geocentric Schema
Markets
Worldwide
Entering Strategy
Foreign Direct Investment
Going global, there are four main strategic decisions to consider
Products to be offerred, markets, entering strategy and speed of entry.
Kidston decided to offer the same product range in all countries. Even though target markets for physical stores are now mainly the UK, Japan and South Korea. However, Cath Kidston expects its e-commerce to expand customer base throughout the world.
Cath Kidston considers the timing right when entering new markets. The company does marketing research to find out the right place and time.
Speed of Entry
Timing Right

9. Implementation Challenges
Political
Regulations, Control & Tax Policy
Economic
Pricing, Exchange rate, Credit Availability
Sociological
Language, Trends & Preferences
Using PEST analysis, implementation challenges Cath Kidston would have to face would be…
Political issues such as regulations and taxing
Economic issues such as pricing and exchange rate
Sociological issues such as languages and culture trends
Technological such as system compatibility and delivery methods available.
The company has to consider these factors when planning pricing, marketing and advertising strategies.
Technological
System Flexibility & Compatibility, Logistic & Delivery

10. Conclusion
Cath Kidston has implemented e-commerce system to support its rapid market expansion. E-commerce provides considerable advantages leading to significant costs saving, better customer services and business operations.
E-commerce has some drawbacks, but those can be overcome with little efforts.

11. Recommendations More product pictures FAQ & Customer Voice
Trust Ensuring Messages
Brand Loyalty Reinforcement
From the SWOT and 5-Forces analysis my colleagues discussed earlier, the group is hereby suggesting Cath Kidston to strengthen the weaknesses by;
First, Display More Product Pictures – including customers’ uploads to provide better details of product quality
Second, Add FAQ & Customer Voice sections– to provide basic answers as well as space for customers to share ideas and experiences
Third, Add Trust Ensuring Messages – to ensure quality and safety i.e. material durability, personal info secured, payment secured
Fourth, Implement Brand Loyalty Reinforcement programs – such as “My Cath Kitchen” to build image and attach customers’ feelings that no other brands do
Fifth, Offer Promotions & Campaigns – e.g. free delivery on order over £30, on birthday or special occasions
And Sixth, Use more Social Media & Mobile Technology – to enable wider customers’ words of mouth i.e. Instagram, Pinterest and more mobile support functions i.e. QR code, Cath Kidston theme or applications (photo decoration, wallpaper, icons, etc.)
Promotions & Campaigns
Social Media & Mobile Technology

12. Group 24 L0350RTRT0211 Ms. Aigul Tanirbergenova
L0650RCRC1011 Ms. Benjaluck Yuttisee
L0238KEKE1011 Ms. Canan Ozen
L0301FKFK0212 Ms. Carole Annick Soup Magne
L0638DODO1011 Mr. Chandra Singh
L0602QCQC1011 Ms. Comfort Nanga
L0685RCRC0212 Ms. Eda Madikusno
L0641KOKO1011 Ms. Farmin Ahmed