Mgmt562 columbia sportswear_strat_term-project_preso
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Mgmt562 columbia sportswear_strat_term-project_preso Mgmt562 columbia sportswear_strat_term-project_preso Presentation Transcript

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