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Company A's Strategy - Strategic Analysis

Essay by   •  July 30, 2012  •  Case Study  •  603 Words (3 Pages)  •  1,613 Views

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Company A's strategy

The strategy we originally employed was to provide the market with a moderate quality shoe at a higher price. All-Star kicks! decided to differentiate our product by having a large advertising budget and paying a premium to our retailers so they will give us the best product placement over our competitors. We decided to modify our strategy a bit in year 2012-2013, compared to our competitors we were over spending significantly on advertising and retailer support. We were forced to drop our price point due to competition. Under advisement we continued to compete in the internet market. We currently have the highest market share in Latin American and Asia-Pacific locations. Our company was reluctant to compete in the private label industry in year 11 but realized the opportunity that the market held.

All-Star kicks! has many strengths first starting with our ability to produce quality shoe at a low price. We have met our investor's expectations all three years. We have a high ROE, EPS, and Stock price compared to the industry. All-Star kicks! continue to do well in the internet, and private label aspects of the business. Since we deliver early and provide free shipping our customers continue to shop our brand. In our industry there was not significant competition in the private label sector and we decided to attack this market. Obtaining large market shares in the private label and internet market has improved All-Star kick's! profit margin greatly.

With strengths comes weakness and All-Star kicks! is not an exception to the rule. We need to improve our wholesale brand in America and Europe-Africa markets. This is the most competitive market in our industry. We need to figure out how to build our demand so we can increase our store utilization, image, and sales in these regions. Due to competitive pricing we have not been able to obtain a celebrity endorser. We believe this has negatively impacted our demand and image rating. Our biggest weakness is capacity. We have not mastered how many shoes we need to produce and which plants we need to expand/close causing us to over produce our product.

We want to maintain a high credit rating for the image and financial well being of my business. We also do not see ourselves changing the price of our products drastically, but continuing to keep the price in line with competitor pricing. We want to go on having a mixed strategy focusing on internet, private label, and the whole sale industry in the Asia Pacific and Latin America geographic segments. We also want to maintain free shipping and speedy delivery of internet orders as an incentive to shopping on our website instead of competitors' websites. We want to continue to give employees incentives for job well done and improve our plants to keep increasing our S/Q rating and decreasing the number of reject shoes.



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