Kathmandu

Kathmandu Holdings Limited (KMD) Internal Analysis

Kathmandu Holdings Limited (KMD) is engaged in the design, marketing and retailing of clothing and equipment for travel and adventure. Currently, KMD has 87 stores in Australia, 44 stores in New Zealand and 5 stores in United Kingdom. KMD also operates its online store.

Kathmandu Holdings reported NPAT up 72.7% to NZ$10.33m for the half-year ended 31 January 2013. Revenues from ordinary activities were NZ$165.92m, up 13.1% from the same period last year. Diluted EPS was 5.1 NZ cents compared to 2.9 NZ cents last year. The net operating cash outflow was NZ$5.61m compared to an outflow of NZ$17.87m in the pcp. The interim dividend declared was 3.0 NZ cents compared with 3.0 NZ cents last year.

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Internal Analysis

Clear description of organisations competancies and capabilities constructed from application of appropriate tools

Based on the value chain analysis, Kathmandu has several primary and support activity strengths. Kathmandus main strengths from the primary activities include operations, service and marketing and sales. As Kathmandu (2014) states on their website, they are always looking to enhance profitability and will continue to work towards that into the future.

Once based in New Zealand, Kathmandu has now moved production of their goods to China in an attempt to cut costs and deliver more efficient operations. Despite increasing outbound logistics costs, this move has seen Kathmandu benefit from the ability to now produce large quantities of quality goods with efficient plant operation practices lowering production costs. Kathmandu’s marketing and sales team who are based in New Zealand supports their heavy focus on quality with clear-targeted marketing strategies. Kathmandu’s marketing and sales focus is the upper class, wealthier travel and adventure market and they use several different mediums to...