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Tara Inc. Tara – A Buddhist savior-goddess with numerous forms, widely popular in Nepal and Tibet. Agenda. Company Current Situation Shoe Industry Country Risks Analysis Conclusion. Company. New business model and idea For Profit company with non profit characteristics
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Tara Inc. Tara – A Buddhist savior-goddess with numerous forms, widely popular in Nepal and Tibet.
Agenda • Company • Current Situation • Shoe Industry • Country • Risks • Analysis • Conclusion
Company • New business model and idea • For Profit company with non profit characteristics • Tara’s Shareholders are impoverished people • Sources from plant located in Gabon • Current situation – Need Financing
The Shoe Industry • Competitive Landscape (3 major players) • Extremely labor intensive • High gross margins • Profit margins are eroded through high R&D and marketing costs • Susceptible to niche players
Company Strategy • Competitive advantage – quality shoes at value prices and world stewardship • Pricing Advantages • R&D • Marketing • Sales Force • Internet will play a key role • Maximize shareholder value • Focused on niche shoe market (running and cross trainers)
Republique Gabonaise (Gabon) Macroeconomic Data (1995) • Population: 1.14 MM • GDP Growth: 1.9% • GDP/Capita: $3,915 US • Inflation Rate: 2.9% • Short Term Interest Rates: 22% • Unemployment Rate: 22% • Exchange Rate: US$1: 647CFAF
Gabon • Favorable country specifics • Relatively stable government republic; multiparty presidential regime (opposition parties legalized in 1990) • Active FDI growth over past 5 yrs • Well established distribution infrastructure • Macroeconomic policy move towards diversity • US economic aid outpost • High unemployment – Higher worker quality
Analysis – Economic Return - Conclusions See Excel Spreadsheet