Business Policy and Strategic Management Group Activity

Group Members –
107 Nakul singh bhati
149 nikhil chhabariya
109 Megha verma
155 Yash jain

Case study on C&J Clark

Q1. USING PORTER’S FIVE-FORCES MODEL, HOW ATTRACTIVE DO YOU THINK THE SHOE
INDUSTRY IS? APPLY THE MODEL TO BOTH MANUFACTURING AND RETAILING. –
Nakul Singh Bhati

Answer
When the shoe sector is examined using Porter's five forces model, it exhibits variable levels
of appeal.
1. The manufacturing sector has high entry barriers because of well-known brands like Clarks
and the requirement for large capital investments in production facilities; as a result, the
danger of new entrants is low.

2. Bargaining The worldwide availability of substitute providers means that suppliers of raw
materials, such as rubber and leather, have a moderate amount of leverage.

3. Bargaining The power of purchasers is likewise limited because: - Retailers, who can
choose suppliers based on both price and quality, may exert moderate pressure on
manufacturers

Retailing:
1. The Risk of Substitutes in Retail:
- is mild since customers have a few alternatives, such as internet shoe stores and other
fashion items that may be used in place of traditional shoes.

2. Competitive Rivalry: This type of rivalry is intense among shops since there are many of
them providing comparable goods, which can result in pricing wars and marketing conflicts.

3. Bargaining Customers have a lot of power in the retail industry because they may influence
businesses' profits by demanding competitive pricing, style, and quality.

Q2.) How does Clarks add value? How would you summarize the company’s strategic
(competitive) position in 1990? In 2000? Do you believe that Clarks is now in a much
stronger position than it was 20 years ago?

Nikhil chhabariya
In 1990, Clarks held a strategic position as a well-established and respected footwear brand
with a focus on traditional styles and quality craftsmanship. By 2000, the company had
expanded its product range to include more contemporary designs and had begun to
embrace technological advancements in its footwear offerings. Its strategic position evolved
to cater to changing consumer tastes while maintaining its commitment to quality and
heritage.
Today, Clarks is arguably in a stronger position than it was 20 years ago. The company has
continued to innovate and adapt to market trends, expanding its product lines to appeal to
a broader customer base. Additionally, its global presence and retail experience have
enhanced its competitiveness in the industry. However, increased competition from both
traditional and online retailers poses ongoing challenges, necessitating continued strategic
agility and innovation to maintain and strengthen its position in the market.

Q3.). Evaluate the changes introduced by Parker in the last five years. To what extent do
you think the current results can be attributed to these changes, and to what extent might
they be the result of external circumstances?

Yash Jain
Analysing the changes introduced by Parker at Clarks in the last five years requires applying

tools from business policy and strategic management, along with frameworks to assess

internal and external factors shaping the company's performance.

 SWOT Analysis:
 Strengths: Parker's focus on digital transformation, product innovation, and
international expansion has strengthened Clarks' brand image and market
presence. The company's heritage and reputation for quality footwear are
significant assets.
 Weaknesses: Clarks faced challenges related to outdated operational
processes and a lack of agility before Parker's tenure. Internal restructuring
efforts aimed to address these weaknesses.
 Opportunities: There are opportunities for Clarks in emerging markets, such
as Asia, and in tapping into the growing demand for sustainable and ethically
produced footwear.
 Threats: Intense competition from both traditional footwear brands and
newer, agile competitors poses a threat to Clarks. Economic uncertainties
and changing consumer preferences also present challenges.
 Porter's Five Forces Analysis:
 Threat of New Entrants: While barriers to entry in the footwear industry can
be high due to brand loyalty and economies of scale, Clarks faces competition
from both established players and emerging direct-to-consumer brands.
  Bargaining Power of Buyers: Consumers have a wide range of choices in the
footwear market, giving them significant bargaining power. Clarks' focus on
innovation and customer experience aims to mitigate this threat.
 Bargaining Power of Suppliers: Clarks relies on suppliers for materials and
manufacturing processes. Ensuring sustainable and ethical sourcing practices
can help manage supplier relationships.
 Threat of Substitutes: Substitutes in the footwear industry include alternative
shoe brands, as well as non-footwear products like sandals or athletic shoes.
Clarks' emphasis on unique design and comfort aims to differentiate its
products.
 Competitive Rivalry: Clarks faces intense competition from both traditional
shoe brands and newer direct-to-consumer brands. Differentiation through
product innovation and brand heritage is crucial in this competitive
landscape.
 PESTLE Analysis:
 Political Factors: Changes in trade policies and regulations can impact Clarks'
international operations and supply chain management.
 Economic Factors: Economic downturns or fluctuations in consumer spending
can affect Clarks' sales and profitability.
 Social Factors: Shifts in consumer preferences towards sustainable and
ethically produced footwear influence Clarks' product development and
marketing strategies.
 Technological Factors: Rapid advancements in e-commerce technology and
digital marketing platforms drive Clarks' digital transformation initiatives.
 Legal Factors: Compliance with labour laws, environmental regulations, and
intellectual property rights protection are essential for Clarks' operations.
 Environmental Factors: Growing awareness of environmental issues prompts
Clarks to adopt sustainable practices throughout its value chain.
 Balanced Scorecard:
 Financial Perspective: Evaluate Clarks' financial performance indicators such
as revenue growth, profitability, and return on investment.
 Customer Perspective: Measure customer satisfaction, brand perception, and
loyalty through metrics like Net Promoter Score (NPS) and customer
retention rates.
 Internal Business Processes: Assess operational efficiency, innovation, and
supply chain management to ensure streamlined processes and quality
products.
 Learning and Growth Perspective: Monitor employee satisfaction, skills
development, and organizational culture to foster continuous improvement
and innovation.

Q4) .If you were Tim Parker, what future strategies would you be considering? Is the family
ownership a relative strength or a relative drawback?

Megha Verma
As Tim Parker, I would be considering several future strategies for C&J Clark to ensure its
growth and success. These strategies would include diversifying product lines, expanding
into new markets, and investing in technology for better efficiency. Additionally, I would
focus on balancing tradition with adaptability to propel the company forward.
Diversifying Product Lines - Exploring the expansion of product lines beyond traditional
footwear to include accessories, apparel, or even lifestyle products. This can help attract a
broader customer base and increase revenue streams.

Expanding into New Markets- Identifying potential international markets for expansion,
leveraging the brand's heritage and reputation to enter new regions. This could involve
strategic partnerships or direct investments to establish a presence in key global markets.

Investing in Technology- Embracing technological advancements to enhance operational

efficiency, improve supply chain management, and innovate product development
processes. This may involve adopting sustainable manufacturing practices and incorporating
digital solutions for customer engagement.

Balancing Tradition with Adaptability- Recognizing the strength of family ownership in

providing stability and a long-term vision for the company. However, it's crucial to ensure
that family ownership does not hinder quick decision-making or innovation. Finding a
balance between honouring the company's heritage and embracing modern business
practices is essential for sustained success.

Family Ownership: Relative Strength or Drawback- Family ownership in C&J Clark can be
considered both a relative strength and a relative drawback. The strength lies in the stability
and long-term vision that family ownership can provide. The family's commitment to the
business and its values can install a sense of purpose and continuity. However, family
ownership can also be a drawback if it hinders quick decision-making or stifles innovation. In
some cases, family businesses may struggle with adapting to rapid market changes or
implementing unconventional strategies due to a more conservative approach to risk-taking.

In the case of C&J Clark, the relative strength of family ownership lies in its stability and
long-term vision, which aligns with the company's heritage and values. However, it's
important to ensure that the family's involvement does not impede the company's ability to
make agile decisions and embrace innovation. Finding a balance between tradition and
adaptability will be crucial for C&J Clark's continued success in the dynamic global market.