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https://youtu.be/FPMPJ40Y4NI
Evolve’s vision is to be the global
leader of branded footwear,
offering the widest choice of
ethically produced and styli...
We enable people worldwide to express
their individuality.
express yourself
Our global appeal, efficient manufacturing facilities and focus on
understanding our customers changing needs, delivers a t...
By providing a constantly evolving footwear experience to a global
audience, we will achieve and sustain an inimitable mar...
May 7, 2017
CSR Strategy & Award - Figures
May 7, 2017
CSR Strategy & Award - World Wide Ranking
May 5, 2017
Competitive Strategy – Internet - Year 10 to Year 18
Year Global Strategy
11&12 N/A
13 Models Offered & Celeb ...
May 5, 2017
Competitive Strategy – Internet - Year 10 to Year 18
May 5, 2017
Competitive Strategy – Wholesale - Year 10 to Year 18
YEAR NA LA EA AP
11&12 N/A N/A N/A N/A
13 Models avail, ...
May 5, 2017
Competitive Strategy – Private label - Year 10 to Year 18
10-15
19-20
16-18
Build CSR Reputation Evolve with M...
May 5, 2017
Year 19 – Year 20 Performance targets
Performance Year 19 Year 20
EPS $5.92 $10.12 $5.95 $10.20
ROE 19% 22% 20...
May 7, 2017
Year 19 – Year 20 Performance targets
May 5, 2017
Production strategy - Overview
Plant Location
Social
People
Development
Costs
• North America
• Asia
• New loc...
May 5, 2017
Evolve Finance Strategy - Stakeholder Value Model
• Employee Engagement and training
• Investment in energy ef...
May 5, 2017
Internet Global Market Share
Achilles Zeus Evolve Flyte
23% 10% 26% 40%
Evolve is driven by market share, ther...
May 7, 2017
Competitive Analysis - Year 18 Snapshot
Internet Marketing
Evolve Flyte Difference
S/Q Rating 7 * 7 * =
Models...
May 7, 2017
Wholesale Global Market Share
Achilles Zeus Evolve Flyte
27% 22% 28% 23%
Evolve is driven by market share, the...
May 7, 2017
Competitive Analysis - Year 18 Snapshot
Wholesale Marketing
Closest Competitor Analysis
Competitive Disadvanta...
May 7, 2017
Private Label Global Market Share
Achilles Zeus Evolve Flyte
5% 81% 14% 0%
Evolve is driven by market share, t...
May 7, 2017
Competitive Analysis - Year 18 Snapshot
Private Label
Closest Competitor Analysis
Competitive Disadvantages
• ...
May 7, 2017
Competitive Actions - Short Term
Internet	Segment	
Decision	Options
• Invest	in	shoe	quality	
(target	8-9*	S/Q...
May 7, 2017
Lessons learnt
1. Focus: we tried to be too many things at the same time
2. Partnerships: Zeus (Partnership of...
May 7, 2017
Lessons learnt - Partnerships - Unicef
May 7, 2017
Lessons learnt - Partnerships - Bobs for Dogs
Thank you!
Evolve - the evolution of shoes | BSG - Business Strategy Simulation Game
Evolve - the evolution of shoes | BSG - Business Strategy Simulation Game
Evolve - the evolution of shoes | BSG - Business Strategy Simulation Game
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Evolve - the evolution of shoes | BSG - Business Strategy Simulation Game

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Published on

MBA: Strategic Decision Making - Business Strategy Simulation Game
Our vision: https://www.youtube.com/watch?v=FPMPJ40Y4NI

My Team:
Uzi Niazi https://www.linkedin.com/in/uziniazi/
Louise Porter https://www.linkedin.com/in/louise-porter-2542245b/

Also look at my article about how to improve the Business Strategy Simulation Game on our Octalysis Gamification Blog: http://blog.octalysisgroup.com/2017/08/how-to-make-a-boring-simulation-exciting-with-octalysis/

Evolve's vision is to be the global leader of branded footwear, offering the widest choice of ethically produced and stylishly designed shoes for ultimate performance.
We enable people worldwide to express their individuality. Our global appeal, efficient manufacturing facilities and focus on understanding our customers changing needs, delivers a truly differentiated business model.

Published in: Business
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Evolve - the evolution of shoes | BSG - Business Strategy Simulation Game

  1. 1. https://youtu.be/FPMPJ40Y4NI
  2. 2. Evolve’s vision is to be the global leader of branded footwear, offering the widest choice of ethically produced and stylishly designed shoes for ultimate performance.
  3. 3. We enable people worldwide to express their individuality. express yourself
  4. 4. Our global appeal, efficient manufacturing facilities and focus on understanding our customers changing needs, delivers a truly differentiated business model. global appeal efficient manufacturing understanding our customers
  5. 5. By providing a constantly evolving footwear experience to a global audience, we will achieve and sustain an inimitable market leading position. constantly evolving global audience market leading
  6. 6. May 7, 2017 CSR Strategy & Award - Figures
  7. 7. May 7, 2017 CSR Strategy & Award - World Wide Ranking
  8. 8. May 5, 2017 Competitive Strategy – Internet - Year 10 to Year 18 Year Global Strategy 11&12 N/A 13 Models Offered & Celeb appeal 14 Advertising & Celeb appeal 15 Models Offered, Free Shipping & Celeb appeal 16 Models Offered, Free Shipping & Celeb appeal 17 Models Offered, Free Shipping, Celeb appeal & Advertising 18 Models Offered, Free Shipping, Celeb appeal & Advertising 19 & 20 SQ Rating & Price
  9. 9. May 5, 2017 Competitive Strategy – Internet - Year 10 to Year 18
  10. 10. May 5, 2017 Competitive Strategy – Wholesale - Year 10 to Year 18 YEAR NA LA EA AP 11&12 N/A N/A N/A N/A 13 Models avail, celeb appeal Models avail, celeb appeal Models avail, celeb appeal Models avail, celeb appeal 14 Advertising, celeb appeal, rebate, delivery time Advertising, del time, celeb appeal Advertising, celeb appeal, rebate, delivery time, retailer support Advertising, del time, celeb appeal 15 the above + increase in models availability Models, celeb appeal, outlets, del time, rebate (+) models, rebate, del time, celeb appeal Models avail, celeb appeal, outlets, del time, rebate 16 the above + retail outlets (+) the above and repeated it. the above + retail outlets (+) the above and repeated it. 17 the above + increased advertising (+) models, advertising, rebate & celeb appeal (+) models, rebate, del time, celeb appeal (+) models, advertising, rebate & celeb appeal 18 the above + decrease delivery time the above (-) del time. the above + advertising, reduced del time the above (-) del time. 19&20 Price & SQ Price & SQ Price & SQ Price & SQ Evolve
  11. 11. May 5, 2017 Competitive Strategy – Private label - Year 10 to Year 18 10-15 19-20 16-18 Build CSR Reputation Evolve with Market Differentiation CSR Evolve Core • Models offered • Bid Price • Target 3 regions • Positioning strategy • Reduce models volume • Withdraw from Private label if possible • CSR – Work life balance for work force – no O/T• Reduced models volume • Low bid price • Not target LA • Reduce Over time in line with CSR
  12. 12. May 5, 2017 Year 19 – Year 20 Performance targets Performance Year 19 Year 20 EPS $5.92 $10.12 $5.95 $10.20 ROE 19% 22% 20% 23% Credit Rating A- A- A- A Image Rating 80 77 80 80 Stock Price $82.20 $173.00 $87.20 $177.00 Total Annual
  13. 13. May 7, 2017 Year 19 – Year 20 Performance targets
  14. 14. May 5, 2017 Production strategy - Overview Plant Location Social People Development Costs • North America • Asia • New location: Europe • CSR culture • Incentive pay • Recycling • Green material • Diversity training • Ethics training • Six sigma/TQM training • Best practice training • Energy efficiency • Reduced overtime • Foreign exchange fluctuations – intelligent distribution of goods Celebrity Endorsements Evolve Marketing spend
  15. 15. May 5, 2017 Evolve Finance Strategy - Stakeholder Value Model • Employee Engagement and training • Investment in energy efficiencies and green materials • Y13: Stock buyback • Y17: Dividend payment • NA and EA: Plant investments • Refinance and consistent loan repayment
  16. 16. May 5, 2017 Internet Global Market Share Achilles Zeus Evolve Flyte 23% 10% 26% 40% Evolve is driven by market share, therefore this is the KPI selected for competitive analysis EVOLVE STATUS: CHASING MARKET SHARE Closest Competitor – FLYTE (Team D) Similar strategy: High No. Models with moderate S/Q rating focusing on all four regions Competitive Analysis - Year 18 Snapshot Internet Marketing
  17. 17. May 7, 2017 Competitive Analysis - Year 18 Snapshot Internet Marketing Evolve Flyte Difference S/Q Rating 7 * 7 * = Models Offered 346 350 -4 Free Shipping Yes No Total Advertising Spend (£m) £71 £63 + 14% Global Celebrity Appeal 1,465 820 + 79% Average Price ($ per pair) $86.50 $72.49 + 19% Global No. Pairs Sold 1218 1678 -27% Global Market Share 26% 40% -14% Closest Competitor Analysis Competitive Advantages • Free Shipping – Switching costs • Celebrity Appeal – Barrier to entry Competitive Disadvantages • Price – Substitute threat • No. models (marginal) – Supplier power
  18. 18. May 7, 2017 Wholesale Global Market Share Achilles Zeus Evolve Flyte 27% 22% 28% 23% Evolve is driven by market share, therefore this is the KPI selected for competitive analysis EVOLVE STATUS: DOMINANT MARKET SHARE Closest Competitor – Achilles Different strategy: Low no. models with high S/Q rating focusing on AP and LA market Competitive Analysis - Year 18 Snapshot Wholesale Marketing
  19. 19. May 7, 2017 Competitive Analysis - Year 18 Snapshot Wholesale Marketing Closest Competitor Analysis Competitive Disadvantages • S/Q Rating – Supplier Power • Price – Substitute Threat • Global outlets used – Supplier Power • Retailer Support – Supplier Power Evolve Achilles Difference Average Price ($ per pair) $63.46 $59.20 + 7% S/Q Rating 7 * 10 * - 3* Models Availability 350 50 + 300 Total Advertising Spend (£m) £71 £64 + 11% Rebate Offer $4 $2 + 50% Total Global Retail Outlets Used 11,084 13,762 -19% Retailer Support ($ per outlet) 550 600 -8% Delivery Time (weeks) 2 3 33% faster Global Celebrity Appeal 1,465 1,125 + 30% Global No. Pairs Sold 7008 6861 + 2% Global Market Share 28% 27% + 1% Competitive Advantages • Model Availability – Switching costs/ Supplier Power • Advertising – Barrier to entry • Rebate offer – Buyers bargaining power • Delivery time – Buyers bargaining power • Celebrity Appeal – Barrier to entry
  20. 20. May 7, 2017 Private Label Global Market Share Achilles Zeus Evolve Flyte 5% 81% 14% 0% Evolve is driven by market share, therefore this is the KPI selected for competitive analysis EVOLVE STATUS: LOW MARKET SHARE Closest Competitor – ZEUS Different strategy: Private-Label Focused – more aggressive pricing across all regions meant Zeus secured market share Competitive Analysis - Year 18 Snapshot Private Label
  21. 21. May 7, 2017 Competitive Analysis - Year 18 Snapshot Private Label Closest Competitor Analysis Competitive Disadvantages • Price – Substitute threat • No. Pairs Offered – Suppliers bargaining power • No. Pairs Sold – Buyers bargaining power Competitive Advantages • n/a Evolve Zeus Difference Global Average Bid Price (if bid) 28.10 27.75 + 1% S/Q 7 7 = Total Models Offered 1563 3915 -60% Total Pairs Sold 767 3915 -80% % of Pairs unsold 49% 0 + 49% Global Market Share 14% 81% -67%
  22. 22. May 7, 2017 Competitive Actions - Short Term Internet Segment Decision Options • Invest in shoe quality (target 8-9* S/Q) • Increase models offered • Reduce Price Wholesale Segment Decision Options • Invest in shoe quality (target 8-9* S/Q) • Reduce Price • Increase models offered • Increase no. of retail outlets • Increase retailer support Private-Label Decision Strategy Options • Reduce Pricing to capture market share • Step away from P-L market DISTRIBUTIONS & OPERATIONS 1. Consider re-alignment of SBUs – Production to meet demand 2. Build plant in Latin America – protects business from potential externalities. LA plant because savings made for distribution to NA Pay back loans
  23. 23. May 7, 2017 Lessons learnt 1. Focus: we tried to be too many things at the same time 2. Partnerships: Zeus (Partnership offered to Flyte in year 14) 3. Pricing Strategy: less aggressive
  24. 24. May 7, 2017 Lessons learnt - Partnerships - Unicef
  25. 25. May 7, 2017 Lessons learnt - Partnerships - Bobs for Dogs
  26. 26. Thank you!

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