The development in machineries and changes in clients’ demands have brought misfortunes to many business organizations. The business chosen for this assignment is Kadgee Clothing in the UK. It is clear from the case study that the organization has faced many challenges over the past. The first problem encountered was the removal of men’s clothing from their cloth lines, which led to the closure of two companies in other nations out of the UK. The closure of the two companies also led to a reduction in the profit margins of the firm.
The other problem that the organization had to deal with was the increased losses at the time. It is clear that the leaders in the firm experienced various types of loses in their business operations. For example, they lost some of their major sales clients. They also lost a lot of revenue in profits both from local and international organizations. The firm had to deal with high competitions and changing client demands that made it incur large amounts of losses in revenue and profits. Despite the fact that they introduced many machineries in the firm, they still had to face stiff competition among other competitive rivals in the clothing sector.
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Kadgee suffered fall in operating profit margins, which occurred due to pressure exerted by the client in the past decade. The case study shows that the organization had to deal with changing client expectations and lifestyles. Their valuable customers had moved a head in terms of fashion; as such, they wanted new trends that were in line with changes in their tastes. However, the firm failed to meet these demands, which reduced sales. The company also lost their sales contract with Forum, one of their Key customers. Other problems faced by the firm were changes in their supply chain and increase competition from China.
Since the firm is known for its high quality products, they should consider product diversification as one strategy for improving their sales. They will need to reintroduce the men’s wear and combine it with the best selling women and children wear that they already have. The other strategy that the firm should employ includes reaching out to high street retailers. This move will help them increase their sales and hence profit margin because most of the high street sellers rely on the sales of high quality and fashionable products such as those sold by Kadgee. Thirdly, the leaders in the organization need to ensure that they put client satisfaction as one of their core values (Oliver, 2014) .
It s clear that their customers have changing needs, therefore, they need to be in a position to sell clothes that meet their various demands (Jestin & Nelis, 2014) . Moreover, the company should aim to use their own brand name when making and selling their products. The leaders need to renegotiate contracts with their customers and let them know that they will start using their brand name in the clothes they make for them (Trittipo, 2015) . This will give them an opportunity to market their brand even further.
The first recommendation for the firm to adopt is brand equity. Brand equity is an important part in helping any organization to position itself in the sector in which it operates (Keller & Richey, 2006) . Brand equity is also important because it will make it possible for the leaders to know how to locate their brand and start selling their products effectively. Moreover, the application of brand equity should be accompanied with effective marketing strategies that aim to outline the best quality products that they make and sell to their clients (Qiu, 2014) . The marketing strategies should also aim to put the organization on an international front. They should be able to open more companies in other countries and experienced increased sales and client base.
Secondly, the management of the firm should aim to utilize product diversification. Product diversification is the act of creating different types of clothing apparels that meet the needs of clients in different fields. This move will make it possible for them to have increased products that will attract many clients from different niches. For example, they need to reintroduce the men’s wear in their product lines (Argarawal & Gort, 2012) .
Moreover, they should also be attentive to several changes that occur in the clothing industry and aim to tailor make products that have the same features in their products (Gentzskow, Shapiro, & Sinkinson, 2014) . Thus, they need to adhere to fashion and clothing changes that come with various factors such as new technologies and modern methods of dressing. They also need to adhere to clients effectively as they aim to diversify their products to them.
Clients constitute the force that drives the success of any business organization. Therefore, the management needs to adhere to their needs and aim to fulfil these demands accordingly. They should not only aim at meeting the goals of brand equity but also hire employees that can create effective relationships with customers. This will make it possible for them to reach out to many clients within the clothing industry.
Reference List
Argarawal, R., & Gort, M. (2012). Firm and Product Life Cycles and Firm Survival. Consumer Behaviour , 1-6.
Gentzskow, J., Shapiro, J., & Sinkinson, M. (2014). Competition and Ideological Diversity: Historical Evidence from US Newspapers. AMERICAN ECONOMIC REVIEW, 104, NO. 10 , 3073-3114.
Jestin, J., & Nelis, J. (2014). Business Process Management. New York: Routledge.
Keller, K. L., & Richey, K. (2006). The importance of corporate brand personality traits to a successful 21st century business. Journal of Brand Management. 14, Issue 1–2 , 74-81.
Oliver, R. (2014). Satisfaction: A Behavioral Perspective on the Consumer. New York : Routledge .
Qiu, J. (2014). Product Diversification and Market Value of Large International Firms: A Macroenvironmental Perspective. ournal of International Marketing:, 22, No. 4 , 86-107.
Trittipo, D. (2015). Buying, Having, and Being: An Introduction to Consumer. Virginia .
