The board is becoming aware that Noria may not be the suitable country that it was 15 years ago for a business like SmartWear to operate successfully in. The financial performance of SmartWear in Southland is significantly better than that being achieved in the more established homeland of Noria, or in its other European markets like Centrum, so the board has asked you to help them understand why this is the case.

To help with this task, you have gathered summarised information on the country of Southland, where SmartWear opened its first retail outlet six years ago, together with comparative data for Noria and the neighbouring country of Centrum. The company now has over 30 retail outlets in all major towns and cities across the country of Southland, where the economy is booming, and Southland generates the most of SmartWear’s revenue as a national market after Noria.

Required:
Prepare a report for the board, in which you:

Professional skills marks are available for demonstrating analysis skills in determining SmartWear’s strategic position in the Southland market. (2 marks)