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Financial Analysis of Cyta

Essay by   •  October 2, 2011  •  Case Study  •  5,438 Words (22 Pages)  •  2,440 Views

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COMPETITIVE ANALYSIS

EMILIOS KAMENOS LTD

WHOLESALE & RETAIL WATCH DISTRIBUTOR

GROUP ASSIGNMENT SUBMITTED BY

ANTOINE HAYKAL (20100049)

GEORGE MICHAEL (20050002)

GEORGIA PITSIALI (20100018)

MUSTAFA MUSTAFA (20100149)

SOMASUNDARAM SUKUMARAN (20100100)

CONTENTS PAGE NO

1 COMPANY BACKGROUND 3

2 INDUSTRY ANALYSIS 4

2.1 Defining the business scope 4

2.2 Identifying the direct and indirect competitors 5

2.3 Market trends 6

2.4 PEST analysis 8

2.5 Industry Attractiveness - Porters Five forces 10

2.6 Sources of Competitive advantage 11

3 CUSTOMER SEGMENT ANALYSIS 13

3.1 Key industry customer segments and profiles 13-14

3.2 What segments are currently being served and future focus? 17

4 COMPANY ANALYSIS 18

4.1 Current objectives 18

4.2 Financial Performance 18

4.3 Current strategy 21

4.4 Strategy delivery 22

4.4 Core competencies 24

5 SUMMARY OF SITUATION ANALYSIS & IMPLICATIONS 24

6 RESEARCH ANALYSIS 25

6.1 Explanation of data collection methods 24

6.2 Detailed analysis 34

6.3 Summary of findings and implications 47

7 COMPETITIVE ANALYSIS 48

7.1 Profiling the competitors 48

7.2 Company positioning compared to competition 54

7.3 Summary of findings and implications 56

8 FUTURE STRATEGY 57

8.1 Analysis of objectives

8.2 SWOT between competitors

8.3 Generation of Ideas and Priority scale

8.4 Strategic options and choosing the right one to pursue

8.5 Future strategy

9 FUTURE STRATEGY EXECUTION

9.1 7Ps analysis

9.2 New capabilities and resources for implementation

9.3 Action plan

10 APPENDIX

10.1 Questionnaires

1. COMPANY BACKGROUND

Emilios N. Kamenos is a retail and wholesale distributor of watches based in Cyprus. Started out as a small family business in 1962, importing a variety of jewelleries and watches, the company managed to develop only the watch section and has now expanded its operations to become one of the island's major importers with sales exceeding the million euro mark.

The company now serves and provides watches to 80 retail outlets of varying size, with a wide variety of known brands to offer customers. Brands vary with demographics from fashionable watches to more technology based watches.

The company's culture is based on the saying that "small is beautiful". This philosophy proved to be very meaningful when the economy went bad and other companies that rapidly expanded having huge debts were in serious trouble regarding cash flow.

Kamenos also operates two retail outlets in Nicosia and Limassol with retail sales generating approximately 16% of the total revenue. The Nicosia retail outlet also serves as the company's warehouse and distribution centre.

Currently employing 8 people in total, the sales revenues have been largely dependent on the market trends and the company never really had to implement a clear strategy. An example to illustrate this is the informal procedures still present in the company, where the manager is multi-tasking.

Since the owner and founder of Kamenos deceased, the management has to review the current strategy, modify its objectives and form a clear plan of action on how to survive and thrive over these tough economic times.

2 INDUSTRY ANALYSIS

2.1 DEFINING THE SCOPE OF THE BUSINESS:

A watch is a luxury item which has a wide range of scope for its applications with lot of substitute products present in the market. Therefore, a clear definition of the watch industry in general is needed to define the business scope.

Apart from substitute luxury products, watches cover the entire customer spectrum ranging from cheap mimics to the expensive elite customer segment like Rolex. Identifying the customer segment and the scope of our business will indicate who are our competitors and the possible threats we might deal with.

Narrowing down the watch and clock industry in general, two questions must be answered to decide the scope of the business and competitors:

Q1: Do customers consider both watches and clocks for their purchase?

Answer: No. Customers are very precise between clocks and watches since both although similar products, serve totally different needs.

The answer clearly shows that any type of clock, whether it is a wall clock, table clock or even an alarm clock is excluded from the scope of our business. The next step is to distinguish between the prices since there are very cheap, to very expensive watches ranging from the tens to the thousands in currency value.

Q2: Do customers consider all types of watches (price wise) when considering to buy a watch?

Answer: No. Customers tend to be very specific and know exactly how much they are willing to spend on

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