Business Strategy for Footsole

Running head: BUSINENESS STRATEGY
Business Strategy
-Foot Sole
Name of the Student
Name of the University
Author Note

BUSINENESS STRATEGY1
Contents
1 Introduction.............................................................................................................................4
Global Footwear Market........................................................................................................4
Major players in the market...................................................................................................4
2 Vision Statement, Mission Statement, Corporate Objectives of Footsole..............................5
Vision Statement....................................................................................................................5
Mission Statement..................................................................................................................6
Corporate Objectives..............................................................................................................6
3 Situational Analysis................................................................................................................7
-Macroeconomic Analysis and environment scanning..........................................................7
PESTLE..............................................................................................................................8
Business Life Cycle............................................................................................................8
Exchange Rates..................................................................................................................9
Manufacturing Locations...................................................................................................9
-Industry and Sector Analysis:.............................................................................................10
M.E. Porter’s Five Forces & Generic Strategy................................................................10
Strategic Groups...............................................................................................................11
..............................................................................................................................................11
..............................................................................................................................................11
..............................................................................................................................................11
..............................................................................................................................................11
..............................................................................................................................................11

BUSINENESS STRATEGY2
..............................................................................................................................................11
4 Internal Analysis...................................................................................................................12
McKinsey 7’s...................................................................................................................12
Johnson’s Cultural Web...................................................................................................13
Handy’s Organisational Culture.......................................................................................13
Competitive Advantage....................................................................................................14
Generic Strategy...............................................................................................................14
Value Chain......................................................................................................................15
Operations Management..................................................................................................15
Strategic Drift...................................................................................................................15
Kaplan and Norton’s Balanced Scorecard.......................................................................16
-SWOT Analysis..................................................................................................................16
Reflection for each year of playing the game......................................................................17
5 Implementation of the Marketing Strategy...........................................................................18
-P’s - Product, Place, Promotion, Price, People, Processes, Physical evidence...................18
-Design, Style and Quality issues; TQM..............................................................................18
-Celebrity endorsement: brand management.......................................................................19
6 Performance Analysis of company operations......................................................................19
-EPS growth of at least 7% annually year 11-15 and at least 5% annually thereafter.........19
-A return on average equity investment (ROE) of 15% or more annually..........................19
-A B+ or higher credit rating................................................................................................19

BUSINENESS STRATEGY3
-An “image rating” of 70 or higher......................................................................................19
-Stock price gains averaging about 7% annually year 11-15 and 5% annually thereafter...20
-Balanced Scorecard.............................................................................................................20
7 Corporate Social Responsibility and Citizenship..................................................................20
-CSR.................................................................................................................................21
-Work Compensation.......................................................................................................21
-Training...........................................................................................................................22
8. Recommendations for future strategy- Milestones and leadership goals.............................22
Changes required – change management approach strategic direction, alignment and
developments....................................................................................................................22
Company culture – changes required...............................................................................23
Corporate Social Responsibility and Citizenship.............................................................23
9 Conclusion.............................................................................................................................23
References:...............................................................................................................................24

BUSINENESS STRATEGY4
1 Introduction
Global Footwear Market
The global footwear market comprises of a wide range of footwear products such as athletic
footwear, non-athletic footwear, professional footwear and casual footwear. The types of
materials plastic, rubber, synthetic, leather and cloth based. The industry is valued to be
worth 224.5 billion USD as of 2017 and has a fast growth rate at 3.1% per annum and y 2026
it is expected to double its revenue. The global footwear market therefore shows an
incremental growth with approximately 34.23 billion USD growth in revenue every year
(Müller 2017; Sellitto et al. 2015). According to Moktadir et al. (2018), the market share of
the global footwear market will reach 320.44 billion USD by 2023. The significant growth of
the footwear market is supported by product innovations and product differentiation which
have led to premuimization of the products and further market capture. From professional to
casual wears the footwear market has shown its prominence and market capture thereby
leading to its growth (Angela 2019).
Major players in the market
The global footwear market is significantly fragmented with a large number of market
players that occupy fragments of the market. The global footwear market has several
important players such as:
Nike Inc: Nike is an American footwear Company and is considered one of the largest
supplier of athletic shoes as well as sports apparels.
Adidas AG: Adidas is a German footwear company that specializes in shoes especially
professional sporting shoes and is one of the largest manufacturers of sportswear in Europe
and Second largest in the world.

BUSINENESS STRATEGY5
Puma: Puma is a German footwear company that specializes in casual footwear and sports
accessories and is the third largest manufacturer of sportswear in the world.
Geox: GEOX is an Italian shoe manufacturing company that specializes in breathable and
waterproof fabric and is the sponsor of the National football League.
Converse: Converse is an American shoe company that specializes in skating shoes and
lifestyle brand shoes. IT has been a subsidiary of Nike since 2003 and its products like Chuck
Taylor, All-Star have significant market capture and branch loyalty.
Crocs Retails: Crocs is an American footwear company that produces foam clog shoes and
have a significant popularity in the market with a significant market capture for its unique
product design and durability.
Reebok: Reebok is an English footwear company and a subsidiary of Adidas and focus on
fitness and sports footwear and is also a significant market player in global footwear industry.
(Müller 2017)
2 Vision Statement, Mission Statement, Corporate Objectives of Footsole
Vision Statement
To be the best company in footwear in the world in terms of product quality and market
recognition an provide safe and ergonomic footwear for the customers. Our vision is to
deliver to a wide range of customer needs including professional as well as casual needs. We
realize that footwear has a diverse set of purposes, each requiring specifications in terms of
the product design, quality, length of use, durability and materials. Our vision therefore is to
establish ourselves as the leaders in global footwear market by providing footwear solutions
that can engage every customer segments and every type of customer needs.