Billabong Value Chain Billabong International Thesis

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Oftentimes who is wearing a product is worth more than any other form of marketing. For this reason, Billabong has put together an elite team of board sports enthusiasts, from surfing to skateboarding, to snowboarding, to wakeboarding -- the top names all wear and endorse Billabong products. Surfing legends like Andy Irons, Taj Burrows and popular freestyler, Rasta, make sure the company brands are proudly displayed as they travel the world looking for the perfect wave. Endorsements and use by popular athletes have been the backbone to Billbong's success since Wayne "Rabbit" Bartholomew began wearing Billabong gear in the 1970s (Carpenter et al., 2010). Today, even a mention in an article that a popular board athlete prefers the brand, such as longboard champion Schuyler McFerran's preference for Billabong wetsuits ("How I hang," 2008), can drive company sales. Yet, all of these values will add up to nothing if distribution too isn't adding to the product's value.

As mentioned, one of Billabong's greatest strengths is their multi-channel diverse operations. The company operated approximately 335 retail stores and distributes their product through 10,000 other venues.The company recently purchased Florida-based Quiet Flight Surfboards, including their 14 stores, to add to their distribution network ("Billabong aquires," 2008).

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On November 24th, 2009, Billabong ventured into forward integration with online retailing with their acquisition of Swell.com ("Swell.com," 2009). With complementary product lines, the multi-channel approach allows the organization to target different customer segments. In addition, Billabong's distribution through several channels allows customers to enjoy a seamless shopping experience, thanks to the company's large product base ("Billabong International," 2009).

From the development of the technologies that go into each and every Billabong product to the distribution to the end customer, Billabong International adds value to every step of the process. This has helped the company grow from a two-person venture of cutting board shorts out on a kitchen table, to the multi-billion dollar corporation it is today. This added value has also helped the company weather the economic storm of recent, while discretionary spending continues to be on the decline. In the increasingly competitive board sports apparel and equipment industry, Billabong has to continue to effectively manage their value chain in order to continue to ride the wave of success......

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