Business Strategy
Summary
Elite Footwear’s main competitors are Friendly Footwear and GOATShoe’s. Our main strengths are the huge advertising budget as well as the free shipping services. Furthermore, the company has a relatively huge market share in the wholesale market. Elite Footwear’s S/Q rating is the same as all our competitors while the prices are always consistent across all our companies. Nevertheless, the company offers more models in the Latin American market, and it may decrease them to lower its expenses or maintain them to create a monopoly.
Performance Analysis
Elite Footwear has a robust and promising position, especially when compared to its main competitors. In fact, its market positions enable it to dominate most of the fields in which it operates. The company’s current low-cost generic strategy is extremely crowded; therefore, a competitor that can lower the prices in either the wholesale or the internet market might stifle its operations. The company is widely confronted with numerous challenges in the Private-Label market, which is always a gamble. The company can underline its dominance by producing products with high S/Q rating while maintaining its relatively low costs.
Section A.
How is the competitor vulnerable?
GOAT Shoes is vulnerable because it supersedes its advertisement budget and offers more customer rebates. Therefore, Elite Footwear has the opportunity of outsmarting it in product promotion. Elite Footwear also stands a better chance of retaining more clients by offering attractive rebates. Soon, HighTop footwear may take some of GOATShoe’s market share in the Latin America where they are increasing the number of models as well as raising their advertising budgets. However, GOAT Shoe’s large market share and a greater number of outlets make it vulnerable to our competition.
How is the competitor building competitive advantage across the whole industry?
Goat Shoes in increasing its internet marketing approaches to expand its market share. It is also leveraging on internet marketing to expand its global outreach. On the other hand, HighTop footwear is increasing its models to appeal to more customers. Additionally, it is increasing its advertisement budget to expand its brand recognition and outreach.
What is your best guess of what the competitor might do in the near future with respect to strategic variables and implementation variables?
The competitors reduce the cost of private label shoes to increase their market share in this market segment, which is a major source of our sales revenue. It is widely expected that the competitors will increase their internet advertisement approaches to gaining traction in the increasingly important market segment. Furthermore, the competitors will expand to increase their global presence by opening stores and outlets in emerging markets.
Section B.
What is your strategy to compete in all three markets Branded, Internet, and Private Label?
The company will continue offering low bids and sustaining high S/Q ratings to increase and maintain its position as a dominant player in branded market. To sustain competitiveness in the private-label market, the company will consistently produce very high-quality shoes, which competitors will be unable to duplicate because of their huge initial investments. In the Internet market, the company will pursue strategies of drastically reducing its prices to outdo the main competitors.
