Billabong

Introduction

Billabong International (Billabong) is an Australian company engaged in the production, distribution, wholesaling and retailing of apparel, accessories, eyewear, wetsuits and hard goods (such as surf and board sports). Billabong's products are licensed and are distributed across more than 100 countries which include Australia, Asia, North America, Brazil, Middle East, Europe and South Africa. The products of Billabong are distributed thoruad its retail outlet and specialized sports retailers. The company's products are available through approximately 10,000 doors worldwide. Billabong sells its merchandise under the brands Billabong, Element, Von Zipper, Kustom, Palmers, Honolua Surf, Nixon, Xcel, Tigerlily and sector 9 brands. Billabong is the company's foundation brand and is one of the leading brands in the global board sports sector, particularly within the surfing community. The company also markets a line of shoes for technical skate footwear and for girls under the Element brand. Von Zipper is an eyewear brand which targets the board sports and general action sports sectors. Kustom is a surf inspired footwear brand offered in Europe. A palmer is a surf hardware brand specialized in the manufacturing of surfboard wax and surfing accessories, including deck grip and legropes. Honolua Surf brand is inspired by the iconic Hawaiian waterman and has a strong presence in Hawaii. Nixon offers watches and Accessories.The Company markets swimwear and apparel products under the Tigerlily brand in Australia. Sector 9 is a skateboard brand, it specializes in skate long boards. Billabong International Limited's core business is the marketing, wholesaling, distribution and retailing of accessories, apparel, wetsuits, eyewear and hard goods in the board sports sector under the Billabong, Von Zipper, Element, Kustom, Honolua Surf Company, Nixon, Palmers Surf, Tigerlily, Xcel, DaKine and Sector 9 brands (Peter, 109-117).

Factors for the Success of Billabong

Position 1: Low Price/ Low Value

Billabong has not applied this strategy for their company. In fact, this strategy is not used by many multinational or other big companies. This strategy is usually for the companies those do not have a good satisfactory product. Billabong believe in quality product and high customer satisfaction, so it does not applied by the company.

Position 2: Low Price

Companies fall in this category attract customers with their low pricing. These companies provide low cost products and try to sell high volume. Billabong do not believe on low cost product with no high value or other advantage. Billabong believes in class and sophistication. Low price goods can be sold in sale option. Billabong go for this strategy a few time when to get over with the remaining stocks.

Position 3: Hybrid (Moderate Price/ Moderate differentiation)

These companies provide Moderate Pricing with some differentiation in the product. The sale of goods is become a bit issue in these companies (Thomson, Baden, 2010, p.166-199). This strategy could not be focused by Billabong because they believe in highly differentiation products with customer satisfaction.

Position 4: Differentiations

Billabong falls on this category several times it focuses on the product differentiation and believes in aesthetics of humans and households. They charge a bit premium price, but offer classy and ...