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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 – Low 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 – Low Power Threat • Competitors are not determining prices and are a low threatening rival Threat of New Entrants – Low Power Threat • Industry is highly competitive; industry growth rate beginning to slow down
BSG Strategic Group Map • North America - Year 17
BSG Strategic Group Map • Europe-Africa - Year 17
BSG Strategic Group Map • Asia-Pacific - Year 17
BSG Strategic Group Map • Latin America - Year 17
Key Success Factors BSG • Retailer Support • S/Q Rating • Production Efficiency 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 • The company should also consider increasing dividend payments given their recent success
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.