Kathmandu Holdings Limited
Syndicate Case Study Report
S2 2010

Executive Summary

Kathmandu Holdings Limited (KMD) is a renowned specialist in quality clothing and equipment for travel and outdoor adventure in New Zealand and Australia, operating 97 stores across New Zealand, Australia and the United Kingdom. KMD commenced trading on the Australian and New Zealand Stock Exchanges in November 2009.

This report will commence with an overview of the external and internal environments in which KMD operates and based on this overview, key strengths, weaknesses, opportunities and threats can be identified.

Subsequently, extensive stakeholder analysis will then be conducted to determine each of KMD’s stakeholders’ specific
The rare capability provides products that successfully address all three markets: specialist, mainstream and general merchandise. The vertical integration model is non-substitutable because KMD has direct control of all its business processes from design to sale. Hence, this capability is a core competency that will provide sustainable comparative advantage for KMD.
 To project itself as the leader in innovative products in the adventure and travel market.
Product innovation is a valuable capability to KMD as it allows the firm to attract customers by customising products using the Summit Club database and Kathmandu’s brand name to enable product differentiation. Imitation will be difficult, as KMD’s product innovations such as specialized product lines like basecamp ®, and its extensive investment in-house product design are tailored to the Australian and NZ environment. KMD’s rare vertical integration model, allows it to gain direct access to customer preferences and integrate it into its business processes. This capability is difficult to substitute, as there are no substitutes to innovative products. However, competitors may adopt similar product innovations, but KMD’s reputation for quality products will neutralize these retaliations. Hence this capability is a core competency that will provide sustainable comparative advantage for KMD.

KMD should address the underlying weaknesses of the company’s distribution channels and reliance on