Mgmt562 columbia sportswear_strat_term-project_preso


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Mgmt562 columbia sportswear_strat_term-project_preso

  1. 1. Strategic Analysis Term ProjectLindsay Bleifuss, Matthew Cox, Amy McKanna, Ken Moriyasu, Marc Rose, Steve SperleyPortland State University: Management 562<br />
  2. 2. Strategic Mission and Intent<br />Sustainable, profitable growth<br />Innovative products<br />Elevate consumer’s perceived value<br />Drive brand awareness<br />Compelling retail environments<br />Emotional consumer linkage<br />Social responsibility<br />
  3. 3. External Environment<br />General Environment<br />Industry Environment<br />Competitor Environment<br />
  4. 4. General Environment<br />Demographics <br />Aging Population<br />Economics<br />The economy grew 7.1% in 4th Quarter 2010<br />Rising oil prices slow growth<br />Technology <br />Mobile retailing<br />Diffusion of information<br />Global Forces<br />Increasing dependence on global suppliers<br />
  5. 5. Industry Environment<br />Threat of New Entrants<br />Few barriers to entry<br />Switching costs are low<br />Bargaining Power of Suppliers<br />Possibility of forward integration<br />Threat of Substitute Products<br />Icebreaker<br />Intensity of Rivalry Among Competitors<br />Slow growth, intense rivalry.<br />
  6. 6. Competitor Environment<br />Current Strategy and Future Objectives<br />E-commerce, Youth Sales, International Growth<br />Strengths<br />Strong brand recognition (North Face, Nike)<br />Resources<br />Weaknesses<br />Low barriers to entry<br />Niche market<br />
  7. 7. Columbia’s Internal Environment<br />Interviewed: Liz Dudley, Senior Merchandise Planner, Bill Fereira, Senior Product Line Manager for Hunting and Fishing,Head Business Analyst of Conception, Design and Production, Kyle Newton, and Senior Business Strategy Project Manager, Beverly Briggs<br />Core competencies<br />Resources<br />Capabilities<br />Business level strategy<br />Competitive rivalry<br />Acquisition<br />
  8. 8. Strategy Formulation<br />Business Level Strategy<br /> Competitive Rivalry and Dynamics<br /> Acquisition and Restructuring Strategies<br /> International Strategy<br />
  9. 9. Business Level Strategy<br />Get away from price competition<br />Move up-market<br />Focus on R&D<br />Differentiate<br />
  10. 10. Competitive Rivalry and Dynamics<br />North Face<br />Design<br />Gore Tex<br />Premium<br />Targeted audience orientation<br />Aspirational Marketing<br />
  11. 11. Acquisition and Restructuring Strategies<br />Acquisitions<br />Move up-market<br />Mountain Hardwear<br />Montrail<br />Increase market power<br />Sorel<br />Acquire new technology<br />OutDry<br />Restructuring<br />Several downsizings <br />
  12. 12. International Strategy<br />International Sales/Marketing Channels<br />Own brand stores, wholesale, and e-commerce <br />China<br />Latin America<br />Canada<br />Europe<br />Counterfeits abound<br />Contract manufacturers in Asia<br />Comparative advantage shifting<br />
  13. 13. Columbia Sportswear Strategy Implementation<br />Corporate Governance – <br />Boyle Family Control: 21.4 million shares valued at $1.2B<br /> Gertrude Boyle (Chairman of BOD), Timothy Boyle (Son, President & CEO), Sarah Bany (Daughter, seat on BOD)<br /> Executive Team Compensation: Base salary, equity, performance based bonus<br />Organizational Structure –<br />Cooperative form Multidivisional Structure<br /> Related Constrained Strategy<br /> Differentiation and Innovation Key<br /> Centralized, top-down, decision making but with added flexibility<br />
  14. 14. Columbia Sportswear Strategy Implementation<br />Strategic Leadership – <br />Strategic vision and mission unpublished<br /> Innovation, innovation, innovation<br /> Vertical organizational management structure<br /> Heterogeneous management team<br /> Succession planning ????<br />Strategic Entrepreneurship –<br /> Cross-functional development<br /> Induced strategic behavior<br /> Top-down, core competencies, internal innovation, cooperation.<br />
  15. 15. Strategic Competitiveness<br />
  16. 16. Strategy Formula Recommendations<br />Balance innovation with aspirational marketing<br />Choose trade channels carefully<br />Keep acquiring up-market<br />Orient products around specific audience<br />Look out for shifts in international labor/supply market<br />
  17. 17. Columbia Sportswear Strategy ImplementationRecommendations<br /> Create a defined vision and mission <br /> Cooperation and individual entrepreneurialism are key to innovation – induced strategic behavior <br /> Succession planning is increasingly important<br /> Seek opportunities to hire senior managers from competitors such as North Face and Nike.<br /> Over time, diversify the Board of Directors<br />
  18. 18. Expected Impacts<br />Recommendations<br />Continue growth in Chinese market with higher-end, trendy product line<br />
  19. 19. Columbia Financials<br />Summary<br />
  20. 20. Financial Performance Comparison - 2010<br />
  21. 21. 2011 Projection:<br />Share price - $72 (currently $65.57)<br />Market Capitalization (Market Value Added) - $2.43 billion<br />% increase in MVA over 2010 – 19.4%<br />Marginal improvements in ROA and ROE<br />
  22. 22. THANK YOU!<br />