All Footwear Company Simulation Report: Competitive Strategy Analysis

This report provides a detailed analysis of the All Footwear Company simulation, covering various aspects of its business operations and strategic decision-making. The report begins with an introduction and outlines the company's competitive strategy, which combines cost leadership and differentiation to gain a competitive edge in the global footwear industry. It then delves into an industry overview, highlighting the company's global presence and the intense competition within the market. A PESTLE analysis is conducted to evaluate the macro-environmental factors, followed by a five forces model to assess the competitive forces shaping the industry. The report then offers a company overview, including its mission, vision, strengths, and weaknesses. It explores the decision-making process throughout the simulation, detailing key choices made during different phases of the game. The final results of the simulation are presented, along with an assessment of the company's overall performance. The report concludes with a reflection on underlying strategic principles and key learning points, providing valuable insights into the strategies employed and their effectiveness.

All Footwear
Simulation Report

Table of Contents
Introduction......................................................................................................................................3
Competitive Strategy.......................................................................................................................3
Industry Overview...........................................................................................................................4
Macro environment analysis- PESTLE analysis..........................................................................4
Five forces model.........................................................................................................................6
Company overview..........................................................................................................................8
Mission.......................................................................................................................................10
Vision.........................................................................................................................................10
Decision made...............................................................................................................................10
1. The beginning.....................................................................................................................10
2. Mid game............................................................................................................................11
3. Endgame.............................................................................................................................12
Final results....................................................................................................................................13
Overall performance of the company.....................................................................................13
Reflection.......................................................................................................................................13
Underlying strategic principles......................................................................................................13
Key learning point about strategy..................................................................................................14
Conclusion.....................................................................................................................................15
Reference.......................................................................................................................................17

Introduction
In this present paper, we will discuss the reflective report of the All Footwear Company. The
paper describes the competitive strategy, industry overview, company overview, decision
making, final results, reflection, underlying strategic principles, key learning point of the
strategy, and conclusion. The paper mainly describes the reflective report of the company All
footwear which is a footwear Company. The company operates in four regions, namely, North
America market, Europe Africa market, and Asia pacific market and Latin America market. In
each region, there are three market segments, namely internet segment, wholesale segment and
private label segment. The competition of the companies is based on the ten factors, namely,
advertisement, the number of models, price, quality, celebrity endorsements, delivery time, mail
in rebates, retailer support, and shipping charges. The target of the annual performance of the
company is EPS 20%, ROE 20%, stock price 20%, credit rating 20% and image rating 20%.
Competitive Strategy
The combination of cost leadership and differentiation is used by the company which enables to
stand out among the competitors within the same industry. The cost leadership strategy is the
business strategy which enables to reduce the operations cost of the company that maximizes the
revenue of the company within the particular period of time. The aim of the strategy is to exploit
the scale of production and enables to produce high quality of products and services for the target
audience by using the innovation technology within the specific period of time. It helps to
achieve the market leadership through reducing the operational cost of the company. The
continued use of cost leadership strategy help to improve the customer service which enables to

provide a competitive advantage to the company, and it also helps to build brand image in the
eyes of the company (D. Banker et al., 2014). The differentiation strategy is used by the
company which helps to produce innovative and unique products and services for the target
audience within the particular period of time. It helps to develop the goodwill and brand
awareness among the target audience within the same industry. The combination of
differentiation and cost leadership strategy helps to provide the low operations costs with the
production of unique products and services that help to provide the competitive advantage to the
company within the particular period of time. The company requires innovation and use of
advanced technology in order to build the competitive advantage to the company. The company
is using a combination of both the strategies in order to provide innovative products and services.
It enables to attract a large number of the new target audience with the retention of existence
customer. The differentiation strategy helps to maximize the strength of the company which
helps to create brand awareness within the particular period of time (Brenes et al., 2014).
Industry Overview
The company lies in the footwear industry, and it operates globally, so the competition of the
company is with the international players within the particular period of time. According to the
researchers, the growth of the global industry will increase in the future, and the market
opportunities will also increase within the particular period of time. It shows that the company
has various opportunities to grow in the existing market

Macro environment analysis- PESTLE analysis
The PESTLE analysis is used to analyze the external environment of the company which enables
to determine the threat and opportunities of the company. Following is the PESTLE analysis of
the company:
1. Political factors
The political environment of the company is stable which enables which to provide the
opportunities to the company within the particular period of time. The company has free
trade policies which provide various opportunities to grow its business. The company is
operating according to the government regulation and policies which help to improve the
infrastructure of the company. The company produces athletic products and services
which always subject to change the manufacturing and taxation laws.
2. Economic factors
The company is contributing towards the economic growth of the company. The rapid
growth of the development markets enables to provide the business opportunities to the
company. The company operates in four regions, and it enables to provide the economic
development of the countries which are fewer development countries (Makos et al., 2015).
The company also provides employment in the operating countries as the revenue of the
company is based on the low-cost labor of the developing countries.
3. Socio-cultural factors
The company has increased the awareness of health consciousness among the individuals
as the target audience feels happy by using the athletic shoes from the company. The
company has also initiated various health awareness programs in order to aware the

individual regarding the health which directly impacts on the sales of products and
services within the particular period of time.
4. Technical factors
The company is using innovative technologies in order to develop unique products and
services to the target audience within the specific period of time. The use of innovative
technologies helps to provide the competitive advantage to the company which enables to
stand out among the competitors within the same industry. The company is using
valuable information based matrix which enables to maximize the revenue of the
company through optimizing the target and production of the company.
5. Environmental factors
The company is using eco-friendly production process in order to produce products and
services (Abbott et al., 2015). The environmental factors are considered by the company
due to which various measures have been taken by the company such as banning of poly
bags, use of eco-friendly material and others.
6. Legal factors
The company has all the rules and regulations of the countries in which they operate.
There are various laws such as employment law, taxation law, consumer law, and health
and safety regulations. It shows that the legal environment of the company is satisfactory.
Five forces model
The five forces model helps to determine the five forces which shape the strategies of the
company through forcing the business. The Michael porter has developed the five forces model
which enables to understand the impact of external threat on the business. Following is the five
forces analysis of the company:

1. Bargaining power of buyers
The bargaining power of the consumers is high as the sales of the company are depend
upon the acceptance of the products and service by the target audience. The preference of
the consumers can be a change which forces them to move from one brand to another.
The large portion of the sale comes from the direct channel to the consumer, so the
consumers have high bargaining power.
2. Bargaining power of suppliers
The bargaining power of suppliers is limited as the company is operating in four regions
due to the company is not dependent on the suppliers. The switching costs from one
supplier to another is high due to which the company supplies their products and services
from different suppliers in order to reduce the force of suppliers on the company (Zhao et
al., 2016).
3. Competitive rivalry
The global footwear industry has intense high competition globally as there are major
competitors who are producing the same products and services in the global market. The
global athletic products change continuously according to the consumer preference, so
the company needs to change continuously in order to compete with the global
competitors within the same industry. The competition is continuously rising within the
industry within the industry due to which the company needs to improve in order to
provide a competitive advantage to the company. So the competitor’s rivalry force is
high.
4. Threat of new entrants

The threat of new entrants is low as a huge capital investment is required to enter the
global market due to which very less new entrants try to enter into the global market. The
company enjoys brand recognition in the global market which does not impact from the
entry of new competitors in the market. The new entrants require a huge amount of
marketing in order to develop the brand image in the eyes of the consumers due to which
a large number of entrants are not trying to enter the market.
5. Threat of substitutes
The threats of substitutes are high as the athletic products are highly demanded in the
market, and there are various competitors who are providing similar products and
services which impact on the sales volume of the company. So the company needs to
continuously improve the products and services in order to sustain in the competitive
market (Ortega et al., 2014). The innovation of products and services helps to reduce the
threat of substitutes on the company as the differentiation of products and services helps
to attract a large number of the target audience which directly impacts on the sales
volume of the company.
Company overview
The company provides athletics shoes in all variety the men's, women's and children's. It
operates globally, and the target audience of the company is covering people from all groups as
the company is providing products and services to the all age group of people. The company
operates in four regions, namely, North America market, Europe Africa market, and Asia pacific
market and Latin America market. The company is using the combination of cost leadership and

differentiation strategy which helps to stand out among the competitors within the same industry.
The company stands as the strong competitors within the same industry globally as the company
is providing the high quality of products and services to the target audience globally. There are
large numbers of competitors who are providing similar products and services to the target
audience globally. Following are the strength and weakness of the company:
Strength
The strength of the company helps to provide the competitor’s advantage to the company which
helps to maximize the profitability of the company within the specific period of time. Following
are the strength of the company:
1. High quality of products
The company provides the high quality of products and services to the target audience
which enables to develop the competitive advantage that helps to maximize the
profitability of the company within the specific period of time (Bull et al., 2016).
2. Use of innovative technology
The company is using innovative technology in manufacturing the products and services
which enable to stand out among the competitors within the same industry.
3. Brand recognition
The company has good brand recognition among the target audience globally which
enables to attract new consumers, and it enables to generate high sales volume of the
company.
Weakness

The weakness of the company restricts the company to maximize the profit generation of the
company within the specific period of time. Following are the weakness of the company:
1. The company does not have its own retailers, and the retailers are very price sensitive.
However, the high income is generated from the retailers. It impacts on the profit margin
of the company which is one of the major weakness of the company.
2. The company is mainly depending upon the share of the footwear industry which is
vulnerable, so it is the major weakness of the company.
Mission
The mission of "All Footwear" is to dedicate diverse quality shoes to customers while leading the
way for sustainable business.
Vision
The vision of "All footwear" is satisfied the needs and demands of the target audience which
helps to develop the competitive advantage that enables to maximize the long-term sustainable
profitability of the company.
Decision made
The decision making is one the most important aspect of the company which enables to achieve
the mission and vision of the company within the specific period of time. Following are the three
stages in which various decisions are taken for the long-term profitability of the company.
1. The beginning
 Financing of company operations

The company decides to finance its operations from the combination of personal funds
and debt taken from the debtors of the company. The combination of debts and equity is
used for the operations of the company because it helps to delineate the risk (Levin et al.,
2013). The results of the decision hope to provide the adequate funds for the smooth
operations of the company.
 Production of branded and private label footwear
The company decides to produce private label footwear as it helps to develop the brand
image in the eyes of the customers. The results from the decision hope to develop the
brand recognition which enables to provide the competitive advantage to the company.
 Corporate social responsibility
The company decides health awareness program globally which directly impact on the
sales volume of the athletic footwear. The results from the decision hope to provide the
create awareness among the people which helps to provide benefits to the target audience.
 Forecasting of sales forecasting & inventory management
The sales forecasting decision is taken on the basis of historical performance of the
company. The forecasting decisions help to manage the total expenditure of the company
according to the forecasting sales within the particular period of time. It is taken to
manage the total inventory of the company.
2. Mid game
 Plant capacity additions

The plant capacity decision is taken on the basis of forecasting demand of the company.
The results of additional plant capacity decision of the company are to increase the sales
volume of the company.
 Worker compensation and training
The decision regarding the worker compensation and training is to increase the human
resource capabilities of the company in order to maximize the sale volume within the
specific time framework. The results expected from the training decision are to improve
the human resource capabilities in order to provide the competitive advantage to the
company.
3. Endgame
 Pricing and marketing
The decision of pricing and marketing is taken based on the competitor’s price offering,
the cost of production and other factors which are used in developing the products and
services.
 Celebrity endorsement contracts
The decision of celebrity endorsement contract decision is taken on the personality of
celebrity matching with the products and services which helps to promote the products
and services in the eyes of the customers (Anderson et al., 2015). The results expected
from the decision are to increase the sales volume of the company and popularize the
brand image in the eyes of the target audience.
 Shipping and warehouse operations