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Fossil Group Inc.
Pursuing the Art of Watchmaking
By Helga Gonda
Keith Boone
Howard Newell
Elizabeth Brobbey
Boris Tchokou...
Issue?
There are many substitutes for watches. With the increasing use of
mobile devices, Fossil Group Inc. and the market...
Company Analysis– Boris & Howard
Financials/ SWOT Analysis/ Value Chain
The Fossil Group Inc. Story - Elizabeth
History/ P...
THE FOSSIL GROUP INC.
STORY
Elizabeth
Company History
● Fossil brand was born at its
headquarters in Richardson,
Texas
● Fossil was founded by brothers,
Tom and...
Product Lines
● Watches
○ fine watches
○ premium branded and
designer watches
○ digital and analog
watches
○ contemporary ...
Scope of the Firm
● Geographic
○ North America Wholesale segment
○ Europe Wholesale segment
○ Asian Pacific Wholesale segm...
INDUSTRY ANALYSIS
Keith
Key Competitors and Industry
Revenue
● Kenneth Cole
● Guess
● Coach
● Louis Vuitton
● Swatch
● Rolex
How Companies Can Remain
Relevant
● Have an established brand to maintain a clear market
position.
● Multiple product line...
General Environment
● The accessory market is expected to increase 10% in
2015 to a U.S. Market Share of $54 billion.
● In...
Key Threats and Opportunities
● Smartphones and wearable technology poses a significant
threat to the accessory industry i...
Two Content Layout
The image on this page can be
removed and used in other
presentations. Just click on it,
then copy and ...
COMPANY ANALYSIS-
FINANCIALS
Boris
Financial Ratios
Comparison
-Net profit margin: Percentage of
revenues that are kept as net
income
-Return on Assets: How ...
Geographic
Information
Net sales and long-lived assets
related to the Company’s
operations in the U.S., Europe, Asia
Pacif...
Fossil, Inc Industry Median
Profitability
Gross Profit Margin 57.32% 44.33%
Net Profit Margin 10.43% 8.55%
Return on Equit...
Market
performance
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COMPANY ANALYSIS- SWOT/
VALUE CHAIN
Howard
Sample Table Layout
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PowerPoint 97 – 2010.
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Comparison Page
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CURRENT STRATEGIES AND
RECOMMENDATIONS
Helga
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Fossil Group Inc

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Fossil Group Inc

  1. 1. Fossil Group Inc. Pursuing the Art of Watchmaking By Helga Gonda Keith Boone Howard Newell Elizabeth Brobbey Boris Tchokouani
  2. 2. Issue? There are many substitutes for watches. With the increasing use of mobile devices, Fossil Group Inc. and the market find the demand for watches on the decline. How to better compete against the makers of Rolex and the Omega watches Gaining new markets? Setting up for the David/ Goliath battle
  3. 3. Company Analysis– Boris & Howard Financials/ SWOT Analysis/ Value Chain The Fossil Group Inc. Story - Elizabeth History/ Products/ Industry Analysis– Keith Industry Environment/ General Environment, Porter’s 5 forces Recommended Actions For the Future – Helga Current Strategies/ changes recommended Agenda Item 1 Item 2 Item 3 Item 4
  4. 4. THE FOSSIL GROUP INC. STORY Elizabeth
  5. 5. Company History ● Fossil brand was born at its headquarters in Richardson, Texas ● Fossil was founded by brothers, Tom and Kosta Kartsotis ● American vintage style ● Started to acquire assembly facilities in the early 1990s ● Fossil incorporated on December 26, 1991
  6. 6. Product Lines ● Watches ○ fine watches ○ premium branded and designer watches ○ digital and analog watches ○ contemporary fashion and fashion brand names ● Fashion accessories ● Apparel ● Footwear
  7. 7. Scope of the Firm ● Geographic ○ North America Wholesale segment ○ Europe Wholesale segment ○ Asian Pacific Wholesale segment ○ Direct to Consumer segment ● Target customers ○ Wholesale customer: department stores and speciality retail stores ○ Dillard’s, JCPennys, Kohl’s, Macys, Nordstrom, Neiman Marcus, Saks Fifth Avenue, Target and Walmart ○ “Style-conscious consumers” ● Technologies ○ Collaboration with Intel: fashionable and wearable technology
  8. 8. INDUSTRY ANALYSIS Keith
  9. 9. Key Competitors and Industry Revenue ● Kenneth Cole ● Guess ● Coach ● Louis Vuitton ● Swatch ● Rolex
  10. 10. How Companies Can Remain Relevant ● Have an established brand to maintain a clear market position. ● Multiple product lines with different price tiers. ● Build a customer base that focuses on brand loyalty. ● Maintain excellent customer relations to establish repeat clientele. ● Be in close proximity to key markets.
  11. 11. General Environment ● The accessory market is expected to increase 10% in 2015 to a U.S. Market Share of $54 billion. ● International trade programs allow for jewelry and watches to be imported from countries with lower manufacturing cost. ● Older customers are more likely to purchase from established department stores and jewelry stores ● Younger consumers are more likely to purchase accessories from discount retailers.
  12. 12. Key Threats and Opportunities ● Smartphones and wearable technology poses a significant threat to the accessory industry in particular the watch market. ● Smaller entrants will find it difficult to enter the industry because large corporations already hold a substantial portion of the market with their established brands. ● Integration of accessories in apparel stores poses a threat to retailers in this industry. ● Opportunities in the men accessories market currently exist. ● Opportunities exist for creating a digital experience that improves in-store and virtual experience.
  13. 13. Two Content Layout The image on this page can be removed and used in other presentations. Just click on it, then copy and paste it onto another slide or in to another presentation.
  14. 14. COMPANY ANALYSIS- FINANCIALS Boris
  15. 15. Financial Ratios Comparison -Net profit margin: Percentage of revenues that are kept as net income -Return on Assets: How efficient the firm is at turning assets to earnings. -Debt to Equity ratio: Indicates what portion of equity and debt the company uses to finance assets.
  16. 16. Geographic Information Net sales and long-lived assets related to the Company’s operations in the U.S., Europe, Asia Pacific and all other international markets were as follows (in thousands): Geographic Region Net Sales Long-term Assets United States $1,525,107 $411,458 Europe 1,052,497 264,173 Asia Pacific 504,124 65,91 All other international 178,243 10,230 Consolidated $3,259,971 $750,952
  17. 17. Fossil, Inc Industry Median Profitability Gross Profit Margin 57.32% 44.33% Net Profit Margin 10.43% 8.55% Return on Equity 33.12% 21.66% Return on Assets 17.21% 12.41% Return on Invested Capital 24.10% 19.05% Effective Tax Rate 31.24% 26.40% Liquidity Current Ratio 3.01 2.72 Quick Ratio 1.59 1.5 Debt Ratio Total Debt/Equity 0.48 0.25 Interest Coverage 8.76 10.19 Growth
  18. 18. Market performance You can add a description of the picture here. In PPT 2007 or newer, this is a custom layout and can be modified under the slide master view.
  19. 19. COMPANY ANALYSIS- SWOT/ VALUE CHAIN Howard
  20. 20. Sample Table Layout Here is the description of the graph. This chart is compatible with PowerPoint 97 – 2010. Here is some more text. You may delete the graphical elements. Geographic Region Q1 Q2 Q3 Q4 United States 1254 1254 1254 1254 Europe and Asia 324 324 324 324 Strengths Weakne sses 32 32 32 1. Distribution channels 2. Designing and manufacturing 3. Financial performance 1. Few supplier s for key inputs 2. Invento ry buildup 2 2 2 Opportunities Threats 1 1 1 1. Collaboration with technology companies to develop smart watches 1. C e ll u l 1 1 1
  21. 21. Comparison Page Your Sub Title Here This is a place holder for item one. Item one can be text, a picture, graph, table, etc. This is a place holder for item one. Item one can be text, a picture, graph, table, etc. Your Sub Title Here Change the YOUR LOGO area below by editing the Slide Master under the view tab. All the graphical elements can be moved, copied, or deleted from the slide master view.
  22. 22. Example Pie Graph This is a PowerPoint 2007 or higher enhanced graph. You may change this graph as you wish. This chart utilizes features available in PowerPoint 2007 or higher.
  23. 23. Smart Art Page Layout Stage 1 • Second level of text here • You can remove the image. Stage 2 • Second level of text here Stage 3 •Second level of text here •Another Point Here •And Another Stage4 •Smart art is quite powerful This chart utilizes Smart Art which is feature in PowerPoint 2007 or higher. If you wish to make charts like this and don’t have PPT 2007, we have provided the graphical elements to help you build this yourself.
  24. 24. CURRENT STRATEGIES AND RECOMMENDATIONS Helga
  25. 25. Smart Art Page Layout Stage 1 • Second level of text here • You can remove the image. Stage 2 • Second level of text here Stage 3 •Second level of text here •Another Point Here •And Another Stage4 •Smart art is quite powerful This chart utilizes Smart Art which is feature in PowerPoint 2007 or higher. If you wish to make charts like this and don’t have PPT 2007, we have provided the graphical elements to help you build this yourself.
  26. 26. Smart Art Page Layout • Add Supporting Text Here Step 1 • Add Supporting Text Here Step 2 • Add Supporting Text Here Step 3 This chart utilizes Smart Art which is feature in PowerPoint 2007 or higher. If you wish to make charts like this and don’t have PPT 2007, we have provided the graphical elements to help you build this yourself.
  27. 27. QUICK FACT A content placeholder. Use for text, graphics, tables and graphs. You can change this text or delete it. A content placeholder. Use for text, graphics, tables and graphs. You can change this text or delete it. A content placeholder. Use for text, graphics, tables and graphs. You can change this text or delete it. A content placeholder. Use for text, graphics, tables and graphs. You can change this text or delete it. QUICK FACT A content placeholder. Use for text, graphics, tables and graphs. You can change this text or delete it. A content placeholder. Use for text, graphics, tables and graphs. You can change this text or delete it. A content placeholder. Use for text, graphics, tables and graphs. You can change this text or delete it. A Two Column Page Layout
  28. 28. Example Pie Graph This is a PowerPoint 2007 or higher enhanced graph. You may change this graph as you wish. This chart utilizes features available in PowerPoint 2007 or higher.
  29. 29. A placeholder for the second picture More information can be added here by changing this text. You can modify this page’s formatting by editing the page layouts under the slide master view. A placeholder for the first picture More information can be added here by changing this text. You can modify this page’s formatting by editing the page layouts under the slide master view. Two Picture Page Layout
  30. 30. QUICK FACT A content placeholder. Use for text, graphics, tables and graphs. You can change this text or delete it. A content placeholder. Use for text, graphics, tables and graphs. You can change this text or delete it. A content placeholder. Use for text, graphics, tables and graphs. You can change this text or delete it. A content placeholder. Use for text, graphics, tables and graphs. You can change this text or delete it. QUICK FACT A content placeholder. Use for text, graphics, tables and graphs. You can change this text or delete it. A content placeholder. Use for text, graphics, tables and graphs. You can change this text or delete it. A content placeholder. Use for text, graphics, tables and graphs. You can change this text or delete it. A Two Column Page Layout
  31. 31. A description of the first picture. You may change this text. A second place holder is available here. Add as much text as you would like. A description of the second picture. You may change this text. A second place holder is available here. Add as much text as you would like. A description of the third picture. You may change this text. Three Picture Page Layout
  32. 32. A description of the first picture. You may change this text. A second place holder is available here. Add as much text as you would like. A description of the second picture. You may change this text. A second place holder is available here. Add as much text as you would like. A description of the third picture. You may change this text. Three Picture Page Layout
  33. 33. Smart Art Page Layout • Add Supporting Text Here Step 1 • Add Supporting Text Here Step 2 • Add Supporting Text Here Step 3 This chart utilizes Smart Art which is feature in PowerPoint 2007 or higher. If you wish to make charts like this and don’t have PPT 2007, we have provided the graphical elements to help you build this yourself.
  34. 34. A placeholder for the second picture More information can be added here by changing this text. You can modify this page’s formatting by editing the page layouts under the slide master view. A placeholder for the first picture More information can be added here by changing this text. You can modify this page’s formatting by editing the page layouts under the slide master view. Two Picture Page Layout

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