Environmental Factors influencing Clubb

International and its SWOT Analysis

GROUP - 5

RACHIT MRINAL
SNEHA SINGH
PRITI SINGH
RISHI MEHTA
AYUSHI MISHRA ASSIGNED BY: - DR. RITUPARNA BASU
SURABHI AJAY BINANI
 Agenda

Environmental Factors
&
Their flow chart

SWOT Analysis

2
Flow Chart of Internal
Factors

Human
Resource

Corporate Business
Objectives Culture

Product Operational
Line Factors

C O N F E R E N C E P R E S E N TAT I O N 3
Human Resources

For the Clubb international, the product design units led by Mullick’s son Arup and team of skilled
workers and cutters affected the marketing objectives. Each and every employees were allowed to
come up with their new ideas. Each and every employees were allowed to come up with their new
ideas. This made the company to challenge everyday with their new design and production methods.
By teaming up like this they have saved ₹15000- ₹20000 per month which, they may have to pay to the
professional designers. We can analysis that the employees are motivated and well-trained which will
definitely help the Clubb international to deliver market- leading, customer service and productivity to
create competitive marketing advantage

Business Culture

The Clubb international believed the only way to keep coming up with new ideas is by going to the
market, observing and understanding what is available there,and then innovating to improve upon it.
Whenever they produced new items, firstly they do offline market testing, if it works there then they
go for online selling. The Clubb always produce the new items in small quantities, so that if it doesn’t
go well in market they can change the colour or modify it without wasting their resources. They
always come up with new products as they believed process of production never stops.

C O N F E R E N C E P R E S E N TAT I O N 4
Operational Factors

The Clubb International believed that their business could run into profit only when they manage their operational expenses in the
most effective manner. They completely relied on dealer driven demand in the market and had strong and close to 128 dealers across
the country. The main operating strategy that the company followed was that they always tried to maintain their prices to be lower by
15 percent than that of its market competitors and VIP Industries. They also believed that cutting cost was a more important factor to
sustain themselves in the competitive market in the long run as a result they directly came in contact with the dealers and eliminated
the distributors which helped them to be more cost effective as they were able to protect their margins by reducing the costs.

Product Line

The Clubb International knew that in order to compete in the international market they needed to expand their product line. As a result
they operated in manufacturing school bags, women's handbags and other accessories. They also experimented with unconventional
materials and successfully manufactured and sold nylon and polyester bags with a small assortment of leather items. They knew that
they could expand their offerings by adding to existing product lines as customers are more likely to buy products from the brands.
And they knew competing in leather product in the international market was not possible for them so they implied the strategy of
innovations by launching jute and leather caps and other accessories which helped them establish in the international market. Their
strength to keep changing their products which was the key factor that helped them to sustain themselves in the international market.

C O N F E R E N C E P R E S E N TAT I O N 5
 Corporate Objectives
For corporate objectives in Clubb International, their decision to stay without any brand endorsement or marketing their product to masses,
rather than they believe that their product will speak for itself. They also were not into any aggressive expansion and whenever they start any
assembly line or open any physical stores, they have full ownership of it. They never opted to allot any distributors or stockist for their product,
simply what they had done is to directly connect with dealers and supply them the products directly which eliminates the middlemen incurred
costs and their dealers will receive higher margins than their competitors.

C O N F E R E N C E P R E S E N TAT I O N 6
 Flow Chart of
External Factors

Technological
Changes

Social Legal
Factors Changes

Natural Competitive
Factors Factors

C O N F E R E N C E P R E S E N TAT I O N 7
Technological Changes
The quick pace of technological change at Clubb International may be driven through innovation. Clubb
International should start use technical internet tools and apps for communication with customers. For example
Instagram and Twitter. Using online platforms removes many intermediaries. Clubb International should use social
media and various website to sell their products, to interact with people and solve their problem.

Legal Changes
Clubb International gets influence by legal component. Clubb International should train its human resource
management team such that there should be no unequal hiring of employees. There should be equal distribution of
salary between men and women. Clubb International try to give friendly moment to all employees. Clubb
International must ensure to give work according to their capacity, age, sex and race. Clubb International must
remember law before hiring a person.

8
Competitive Factors

In order to gain leadership to grow and expand there is need in the change of operational model being followed. The
competitor China is being importing the finished leather from the Australia and New Zealand that is cutting down there
cost making them cost-efficient. But unlikely, The Clubb International follows the policy to extract the natural leather
that involves operational cost making it cost-inefficient from the competitor.

Natural Factors

The natural factors to be also kept in mind as the one of the operation processes tanning involves toxic waste should be
cut off by adopting the new methods, to avoid the environmental hazards.

Social Factors

The Company being an Indian company should adopt a blend of labor - intensive and machine - based as to keep pace
among some sociological factors including the emphasis on employment generation apart from that the social classes
and lifestyles.

C O N F E R E N C E P R E S E N TAT I O N 9
 SWOT Analysis
Strengths

• No intermediaries between company and dealers, this gives high margins to dealers and thus they sell
Clubb International products.
• Innovative products at lower price range.
• Efficient production line.
• Full ownership of all assets.
• Full Ownership

Weaknesses

• Company lacks in marketing strategy.

• Competitors like Samsonite have a brand name and bigger consumer reach which enables higher sales
for their products.
• Lack of expansion in Indian market.

C O N F E R E N C E P R E S E N TAT I O N 10
Opportunities

• It had innovative ideas and approaches and were very experimental in unconventional materials which helped them in
manufacturing and selling their products.
• Making the best utility of jute and leather for their products helped them to expand their business in the international
market too in a cost effective manner.
• Expansion to Tier-2 and Tier-3 cities.

Threats

• Increase in the numbers of competitors in both the international as well as local market.
• The fast changing market trends was one of the major threats for the company as they couldn't adapt the changes
easily.

C O N F E R E N C E P R E S E N TAT I O N 11