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Holey soles - Management Policy Part I
- 1. HOLEY SOLES “A world leader using injection-foam molding as the basis for a new generation of lifestyle products that were comfortable, functional, stylish and affordable.”
- 2. Recommendations Keep differentiation as competitive strategy Objective of $40 million can be reached if: Establishing alliances in Mexico Enhanced branding Backward and forward integration
- 3. Key Issues Fluctuation of Demand Manufacturing Issues Warehousing Issues Lack of Human Capital Poor Brand Recognition
- 4. Competitive Strategy Differentiation High quality and Innovative Products SmartCel & SoleTek Superior Customer Service 360 Feedback Complementary Products
- 5. Demand Fluctuation/Life Cycle “Providing innovative lifestyle products for all seasons” Introduce Spring and Winter boot collections (Target: kids and females) Target new regions with warmer climates (Southern hemisphere) More aggressive online selling Range of colours and sizes will continue to be offered in new styles
- 6. Risks and Contingencies Lack of sales due to brand recognition Time and Money
- 7. Manufacturing “Identifying new markets where competitors are absent” Mimic QC standards used in China Negotiate better deals with suppliers Establish agreements with production facilities in Mexico
- 8. Risks and Contingencies Financing Quality control Switching costs Tariffs and friction costs- NAFTA
- 9. Warehousing “Altering distribution channels as products reach market maturity” Short Term: Use the current arrangements with China as a starting point for establishing agreements with Mexican manufacturers Long Term: Forward Integration
- 10. Risks and Contingencies Inventory Costs Obsolescence Capital Investment for forward integration
- 11. Map of World With Plants / Warehouses
- 12. Lack of Human Capital “Providing superior customer service and competitive pricing” Hire more experts and specialists (currently employees and upper management are generalists) Marketing Customer Service
- 13. Risks and Contingencies Resistance to change Recruiting costs Culture Training and development-Specialization
- 14. Brand Recognition/Marketing “Pursuing aggressive marketing for new styles” New marketing VP can work on brand recognition campaign Ms. Groote should become Holey Soles Spokesperson Upgrade classic collection to include new innovations CSR and media coverage
- 15. Risks and Contingencies Cost Implementation Failure to align with strategy and culture Target market not achieved
- 16. Timeline of Implementation Southern Hemisphere (Mexico) Backward Integration 2008 2009 2010 2011 2012 Aggressive Marketing Forward Integration
- 17. Alternatives & Rationale We decided against the following: IPO Brazil Merger/Acquisition
- 18. Summary Current Strategy will deliver expected results $40 M New Products introduced to level out demand fluctuations International Expansion – Southern Hemisphere Financing with Loans and Profit Rapid Growth on Supply Chain – Backwards Integration (Long Term) Org will grow as fast as demand due to Specialized human capital
- 19. Thank You Questions?
Editor's Notes
- Objectives: 40 million revenue in 2009 and 4 to 6 new products launched per year
- Establish agreements with production facilities in Mexico to help with peak season demand and to help move into Mexican market and South America (5 day transit time)
- Quality Control: talk about the checklist being established before manufacturing
- Quality Control: talk about the checklist being established before manufacturing
- Discuss the Issues with Hospital Workers and Children as well as the implementation of SmartCel & SoleTek with the Classic collectionLong Term: Forward Integration