Industry 20

 Vision -To establish a market leading

manufacturer of quality footwear at
competitive prices.

 Mission - Increasing our product range,

quality and services while delivering
outstanding shareholder value.
 Overall- adopted a cost leadership strategy
focusing on wholesale & internet segments.
 Overall – to achieve and maintain high credit
ratings and rates of shareholder return.
 Midpoint – to move manufacturing into Latin
America to reduce costs.
 Ending stage - To increase quality, capacity
and market share.
Strengths Weaknesses
• Credit rating • Free Shipping
• Retail Price • Delivery Time
• S/Q Rating • Retailer Support / Outlets
• Advertising • No private label share
• Celebrity Appeal
• Rebate offer
• Internet segment
Opportunities Threats
• No threat of new entrants • Exchange rate fluctuation
• Low interest loans • Interest rate fluctuation
• International plant expansion • Competitor action
• Growing market share
Decisions in year 13 Decisions in year 14
◦ To reduce costs we decreased  Increased quality
models.
 Decrease price
◦ Unchanged pricing strategy
◦ Increase in capacity in N.A  Celebrity appeal
plant (skilled labour)  Increase advertising in
◦ Increased advertising (N.A North America (because of
AND EUROPE) increasing capacity by
building a plantation ; in
This placed us last in industry order to obtain more
 Lower quality than average
market share)
 Increase number of models
 Less models
 Stop Private Label
 Low market
 Free internet delivery
Year Ranking
Year 15 2
Year16 2
 Decision Results
 Increased price  Increased market share
(internet) (internet)
 Decreased price  Decreased market share
(wholesale) (wholesale)
 INCREASED MODELS  Increased overall sales

 Increased advertising
 Internet
Market growth rate

22% av.

Wholesale
18% av.
Private label
0%

Relative market share

 To reduce capacity in North America earlier.
 Identifying saturated markets and changing
investment strategies.
 Manage capacity and costs more efficiently.
 Predicting market directions through
analysing financial information and
competitor trends.
 Collaboration, teamwork & managing
conflicts.