Berghaus’ Case Study

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Berghaus’ Case Study

1) Berghaus is very successful business having an annual growth rate

of 25%. This indicates that there is an increasing demand for their

products. They also have an export ratio of 50% meaning that their

distribution rates are very good. Last year alone their per-tax

profits were £750,000 and a large amount of this money can, most

probably, will be reinvested into the company for further development.

Also, its pre-tax profits in 1991 were £750,000 which is obviously not

a small amount, Berghaus clearly mean business. By the sound of it,

that number is only expected to increase in the years to come. It has

an export ratio of 1988-9 of more than 50%, which is the vast

majority, within the whole of Europe, meaning that its export

increased by a great deal during those years specifically, and we

assume it still increases in other years too, although maybe not as

much as between 1988-9.

2) In the context of Berghaus, market differences mean many things.

Berghaus currently conduct sales through large number of countries,

from Germany through the United Kingdom and Switzerland, and as a

result Berghaus have found out that the world cannot be treated as

though as one market. Each country has its own customer preferences

and may have certain social attitudes to a certain type of clothing,

and these are known as market differences. Due to this Berghaus has to

develop a certain product for a specific country and then modify that

product or completely reconstruct it for another country. This as a

result means higher costs are involved in research and development and

also different advertising methods would have to be implemented. This

market difference has meant Berghaus have had to operate quickly and

efficiently to design, produce and distribute the product across all

the parts of the world, beating all opposition and this is obviously

very difficult for Berghaus.

3) There are many different reasons for the success of Berghaus, and

these can be mainly divided into four parts, Production, Finance,

Marketing and Management.

Production is simply the fundamental part of the company, without it

no product would exist to sell. Designing new products is what makes

people want a certain product and Berghaus have strategically produced

a wide range of products meaning that they will be able to

successfully cover the different fields in the market. This means that

they have more areas for money coming; by having more units and

product innovation is an essential key t their success. Production has

also been economised by the introduction automated production with

continual processes. This allows an easy and flexible method to

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