Case Study Analysis on Klenmaid

Assignment 01 HC3141International Strategic Management

01. Identify the key business drivers that influence the success of the appliance industry

The environment is what gives organizations their means of survival. In the private sector, satisfied customers are what keep an organization in business in the public sector; it is government, clients, patients or students that typically play the same role. Kleenmaid develop the key business drivers for gain their vision company develop the business environment which are the different kind of environment

These are

Macro environment, industry, competitors, markets

Kleenmaid was a cent percent privately owned Australian company started by Andrew Young and Dick England in 1985. It is one of the largest industries for manufacturing domestic appliances in Australia. The company has made great strides with annual sales of more than 100 million dollars through more than 30 stores across Australia. It has been rated as one of the fastest growing private company in Australia. The main objective of company is to provide excellent service to its customers not only during the sales but also throughout its after sales service. Kleenmaid Company manufactures home appliances for kitchen, laundry and lifestyle which are of very high quality standard. They achieved their target.

Kleenmaid as one of the leading Australian brand for domestic appliances has maintained its excellent service in the field of customer service as well as after sales service. This company claim to be the only Australian retailer to offer outstanding protection for its customer by providing customers with 5 years parts and labour warranty. As far as its concern towards growth strategy, it bought the brand name of St George appliances in 1999. But later in 2004 it refocused its own core business of Kleenmaid appliances. The company is very well renowned for its appliances because they have a unique reputation for unique design, outstanding performance, quality and reliability. In the beginning it used to sell its products using conventional retailer. But from 1995 to uphold its commitment for providing unique product and exceptional service, it started selling directly to its customers through its own retail network.

In the last few years there has been a massive growth in the volume of domestic appliances sales with the rapid growth in housing industries in Australia. The household appliances in Australia has been dominated by some local brands and some European brands. But recently there has been strong invasion of Asian brands like Samsung ad LG into the Australian market. Due to this strong influx, there has been a greater competition in the appliance industry. The existing manufacturers are forced to discount their prices to position themselves in current competitive environment. Despite the increase in volume of sales, the downward pressure on prices has constrained the industry growth in terms of value.

02.Identify the key players of the industry and use strategic group mapping techniques for identify the competitors of kleenmaid and discuss the extent of mobility barriers if any between the strategic group

These wider competitive forces (the four arrows in the model) all impinge on the direct competitive rivalry between an organization and its most immediate rivals. Thus low barriers to entry increase the number of rivals; powerful buyers with low switching cost force their suppliers to high rivalry in order to offer the best deals. The more competitive rivalry there is, the worse it is for incumbents within the industry. Suppliers supply the organization with what isrequired to produce theproduct or service, andinclude labour andsources of finance

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Due to the competition, the intensity level has increased in both manufacturer and retail areas. Especially in domestic electrical appliances, Harvey Norman and Retravision have played a dominant role in product distribution as well as offering cheaper prices. Some of the key players in his industry are Electrolux, Fisher & Paykel and GWA international which are well known for the domestic appliance products. Because of the high level of competition, the electrical appliance industries have to face some disadvantages as well as some industries can benefit out of that competitive market also. In the case of Kleenmaid Company, we can observe that it is benefited due to its very high level of customer service facilities. Besides, it also got recognition and awards due to the production of environment friendly electronic appliances. It has got electrical appliances which are awarded for its energy efficiency. In addition to that it has got range of electrical appliances which are of A-Class European ratings because of environmentally designed features including pyrolytic clean, eco-cooking modes and energy efficiency.

Kleenmaid's competitive advantage lies in some of the factors such as:

* Its superior product design

* Superior warranties

* Superior in-store experience

* Fully trained sales people with better knowledge compared to their competitors' sales staff.

* Fully functional stores where customers can experience the working demo.

* Special offers and opportunities for customers.

* Kleenmaid-owned and managed customer service and after sales service to provide a complete "Kleenmaid Experience" of an exceptional level.

Besides these key factors, Kleenmaid is always well known for its price and quality as compared to other leading brands as Miele, Maytag, Smeg, Gaggenau, Blanco, Westinghouse, Simpson, LG, Fisher & Paykel. All of these brands are competing for the same premium dollar that Kleenmaid is targeting. But nevertheless due to its highest level of customer service, Kleenmaid has maintained its name and position.

One of the key players behind the success of Kleenmaid is its co-founder, co-owner and chairman Andrew Young who has commanded for high respect for steering the company through his vision and strategies and their successful execution. He was a very hardworking businessman with natural entrepreneurial ability who could visualize opportunities that are often seen by his competitors as being considerably risky. Despite having any formal academic qualifications,

03. Discuss whether the recent shift in the planning practice at kleenmaid will be of any help in meeting its strategic and financial objectives.