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Industry 42 Company C. Shareholders Tyler Armstrong - Business Admin (Marketing) Dec. 2010 Cameron Hendricks - Business Admin (Finance) May 2011 Matthew Purdy - Business Admin (Finance), International Studies (Europe) Dec. 2010. 5 Forces - Analysis. Suppliers – High Power Threat
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Industry 42 Company C Shareholders Tyler Armstrong - Business Admin (Marketing) Dec. 2010 Cameron Hendricks - Business Admin (Finance) May 2011 Matthew Purdy - Business Admin (Finance), International Studies (Europe) Dec. 2010
5 Forces - Analysis Suppliers – High Power Threat • Demand for materials increasing; demand greater than supply Buyers – High Power Threat • Not much differentiation among competitors; many sellers to choose from Substitute Products – Low Power Threat • Customers unable to use products from another industry to satisfy needs (ex: athletes) Rivalry – High Power Threat • Many competitors of almost equal size Threat of New Entrants – High Power Threat • Industry has steady annual growth rate (7-9% from Y11 to Y15)
BSG Strategic Group Map • North America - Year 15
BSG Strategic Group Map • Europe-Africa - Year 15
BSG Strategic Group Map • Asia-Pacific - Year 15
BSG Strategic Group Map • Latin America - Year 15
Key Success Factors BSG • Production Efficiency • S/Q Rating • Strategic Global Positioning of Plants Footwear Industry • Production Efficiency: What is Production Efficiency? • Customer Loyalty: It’s a Community • Innovation: GEO Footwear
Strength AssessmentIndustry 43, Company C North American Segment – Year 16
Recommendation For Top Management • To create and sustain competitive advantage with relationship to customers, management should focus on further improving S/Q rating by increasing superior materials usage • To create and sustain competitive advantage with relationship to shareholders, management should focus on maintaining the market share (in both internet and wholesale segments) that the company captured in years 15 and 16 • Should also focus on improving logistics efficiency (reducing lost sales)
Citations • Holmes, S. (2006). Nike: It's Not a Shoe, It's a Community. Retrieved Oct. 18, 2010, from Business Week, Washington, DC. Web site: http://www.businessweek.com/magazine/content/06_30/b3994068.htm. • (2003). Production Efficiency. Retrieved Oct. 18, 2010, from Investopedia, Edmonton, Canada. Web site: http://www.investopedia.com/terms/p/production_efficiency.asp. • Wilson, C. J. (2003). Geox - Footwear Innovation at Its Best. Retrieved Oct. 18, 2010, from Ezine Articles. Web site: http://ezinearticles.com/?Geox---Footwear-Innovation-at-Its-Best&id=4695807.