3. Value Chain Analysis
Firm Infrastructure
The world’s only WFTO shoe company on the planet. Manufacturing plant locally / physical shops internationally.
HRM
Pay their workers 4x higher the minimum wage and 3x the industry standard. Provide medical benefits to their employees
and training facilities. As well educate employees and their families. Employs around 300 locally.
Technology development
Manual loops, artisan crafted in Ethiopia, Zero- CO2 commission.
Inbound
logistics
Designing ,
Creating,
Coordinating,
Warehousing ,
Buying raw
materials from
local
handicraftsmen
and Farmers.
Operations
Spin, dyne, cut,
sew, dry natural
cotton. Recycled
tire soles and
locally-sourced
organic materials.
Outbound
logistics
Marketing &
Sales
Finished garment is Each week they
produced, stored
sponsor a
and distributed
giveaway. Include
internationally to
printable foot
dealers,
measuring stick
partnerships and Purchasing Online.
stored at physical
The shoes are
shops . As well
around $60 and
delivering, order
include free
processing.
shipping .
Primary Activities
Service
Margin
Procurement
Purchase good from local handcraft men, build new plant.
100% happiness
guarantee, that
they will replace
them for any
reason until you
have worn through
the sole.
3
5. Business Level-Differentiation Strategy
Key drivers of
Differentiation Strategy
1) Product value to customers is
provided trough unique features
and characteristics of the
Company’s product.
Solerebels usage of
Differentiation Strategy
Vision: One step at a time
Cushy foot bed
Recycled rubber car tire as soles/
Ethiopian cotton, other textiles
2) Objective of this strategy is to
persuaded “Gap” in the market/
industry against its competitors.
Superior Quality
Packaging- Envelops
Customer Service & Support- Happy
Soles, Printable foot measure stick
3) Since the company outperform its
competitors and earn aboveaverage returns, the price for the
differentiated products must be
premium.
Unusual design and FAIR TRADE
Image
Cultural based know-how
5
Slide 1: Good Afternoon, my name is Kristine and today I would like to explain how Solerebels shape their processes in order to create sustainable competitive advantage.
In the beginning I would like to explain you Solerebels, value chain analysis, then their use of differentiation strategy, afterwards how is the added value created by combining both techniques together and in the end I will make small conclusion.
Slide3: Primary activities are involved in Solerebels shoes creation, but secondary activities ensure that shoes making processes are carried out efficiently and effectively. Therefore value chain is series of interdependent activities. 1)By analyzing SoleRebels Value chain it can be seen that the company spend a lot of capital and time of product design and the quality of its materials. A result of this is, that they avoid greater maintaining costs during the products use. They say they will replace the shoes for any reason until you have worm through the sole. In addition Solerebels produce their products 100 % locally in Ethiopia and are proud of it, because it brings many benefits to the local community. Moreover they uses its supply chain in house, because this supply chain delivers quickly, with little waste. Through their in-house production they save cost which they would need to pay to third parties and can therefore pay higher wages. As well this activity constitute a core competence. Right now end Products are delivered directly to customers without using any intermediacy.
Slide 4: I just used the value chain analysis as a technique which helped to asses Solerebels activities by finding out the strengths and competencies of the company. Therefore it is as well important to see how Solerebels differentiate on the market.
Slide 5: General Info about differentiation strategy: 1)A differentiation strategy means that value is provided to customers through the unique features and characteristics of a company's products.Solerebels creates the value of the products through its vision: one step at time. This vision displays social responsibility towards environment and manufacturing. Shoes has a cushy foot bed that I see as unique feature and since the shoes are made from recycled rubber car tire and naturally grown Ethiopian cotton these elements are unique characteristics. Through unique features and characteristics of the product. Solerebels can create an own market in the footwear industry for their shoes. This is the reason why they can ask a premium price.
Slide 6: Since we know value chain and differentiation strategy of Solerebels.
Slide 7:Let’s see how these both techniques support each other.
Slide 8: It can be seen that trough the design of the value chain the differentiation strategy is already supported. Therefore the combination of both techniques are the key of success of Solerebels. Which RESULTS IN HIGHER BENEFIT FOR CUSTOMER-As QUALITY and IMAGE EXPERIENCE
Slide 9: That is illustrated in this graphic. Solerebels value chain activitiesfocus throughout its primary and secondary value-creating activities on establishing the importance of quality, speed, and responsiveness. These activities provide greater reliability, durability and convenience for the consumer. The focus is also on understanding and meeting customers' unique preferences and so creating innovative product. Afterwards monitoring quality of activities provided by others that interface with the company's inbound and outbound logistics.
lide 10. Therefore the value for the buyer is created when an organization is able to improve activities in value chain and therefore create a differentiation for the buyer.
Slide 11. For instance many people would like to help Africa’s development, then some buys the shoes, because they believe by buying Solerebel products, they support the Idea of Fair Trade in addition product is very innovative and unique. Moreover products has made very happy and healthy employees because of working conditions. That is why, the buyers perception of the value will determine the organizations ability to charge the premium price. In turn, these activities combination into strategy provides the organization with sustainable competitive advantage.
