Browns Sports Footwear: Strategic Recommendations and Analysis

This report provides a comprehensive strategic analysis of Browns Sports Footwear, a popular brand in the sports footwear industry. The analysis begins with an introduction that outlines the report's objectives, followed by a detailed examination of the company using PESTLE analysis, which assesses the political, economic, social, technological, legal, and environmental factors impacting the business. Porter's Five Forces model is then applied to evaluate the competitive landscape, including the threats of new entrants, substitutes, and the bargaining power of buyers and suppliers, along with competitive rivalry. A SWOT analysis is conducted to identify the company's strengths, weaknesses, opportunities, and threats. The report also includes Bowman's strategy clock to determine the strategic options available to the company. Finally, the report offers strategic recommendations for Browns to improve its performance and sustain its market position, along with the skills required to work in the shoe industry.

STRATEGY: CHOICE
AND CHANGES

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Main Body...................................................................................................................................1
Recommendations.......................................................................................................................5
PART 2............................................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Current study is based on Browns Sports Footwear which is the popular sport footwear
brand. Present report will describe PESTLE, Porter's five forces and SWOT analyses model with
references to Browns. Furthermore, recommendations for future strategic directions will be given
in this assignment.
PART 1
Main Body
PESTLE analyses
Political
It is considered as one of the major element that impacts on entire footwear industry. UK
government faces major problem of increasing number of cases of obesity. For eradicating this
issue government has promoted sport wear and activities. By this population get to know about
benefits of healthy life style (Browns Sports Footwear Case, 2016). After that selling of Browns
Sports Footwear got increased to great extent. In the year 2010 cloths and sport footwear
sales has increased by 5.4%. Over a period of time this industry has accounted for 24% growth.
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Illustration 1: UK market of Sport
footwear
Source: (Browns Sports Footwear
Case, 2016)
Economic
Demand of footwear products increase day by day. Global athletic footwear products are
now in high demand. It has value of around 80 billion USD as per the statistical record of 2015.
Economic conditions of UK is sound, people have adequate income sources that helps in making
the economic position of the country sound (Loveson, L., 2015). But earlier to that in the year
2002 at recession time Browns had to close many of its shops which has affected its profitability
to great extent.
Social
It is another factor that impact on market position of the company significantly. Most of
the consumers were attracted towards Catwalks and many others designers products. For
example Celina has provided pair of shoes for only 600 and many popular stars such as Michael
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Jordan, Pharrell Williams were promoting this brand. Promotion of Athleisure wear by
celebrities have increased demand of the sport products in the market (Dimitrakopoulou, 2015).
Technology
It is another major element that impact on entire industry. As in the 80's century no one
was engaged in using websites and online shopping (Ali, 2015). But later on demand of online
shopping has increased, this has forced the Browns to invest in the latest technologies. Brown
has invested in technologies and has designed innovative footwear this supports in increasing its
profitability.
Legal
Government makes changes in rules and legislation, in such condition it is essential for
the entity that to implement these rules in workplace for running business smoothly. After the
changes in laws Browns has involved 20 out of 40 senior employees in decision making process
so that necessary changes can be implemented in the workplace on time (Bisson and Diner,
2017).
Environmental
It is essential to manufacture footwear that are environmental friendly. For maintaining
this element Browns has reduced producing goods from leather and suede (Browns Sports
Footwear Case, 2016).
Porter's five force analyses Threats of new entry: A new business require to invest huge capital for entering into
footwear industry. Thus, threat of new entry is very low. Apart from this there are many
firms that are operating in this industry, they are having strong brand image such as Nike,
Adidas etc. Brown is the multinational firm which has strong market share after Nike and
Adidas (Barceló Tur, 2015). In such condition it is difficult for the new firm to sustain in
the market for longer duration. Threat of substitutes: There are many substitute footwear such as Havaianas, Crocs, Fit
flops that attracts consumers towards it. Browns always offers innovative products,
athletes footwear products to its consumers. This has made it renowned brand in the
footwear industry (Hanke, 2017). But fashion industry can get changed anytime in such
condition it is essential for Browns that to fill the gap. Thus, threat of substitute products
are very high.
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 Bargaining power of buyers: Consumers are the assets of the organization, they can
influence overall performance of company to great extent. Consumers of Brown's are
loyal towards the brand but they prefer to buy products from such company which offers
them products at reasonable prices (Chisholm, 2015). If cited firm fails to provide them
goods at affordable prices then they may move to other brand. Thus, bargaining power of
buyers is high (Browns Sports Footwear Case, 2016). Bargaining power of suppliers: Suppliers have moderate bargaining power. There are
many suppliers those which are working in this industry. So Brown's can get material
from such supplier which offers them raw material at affordable rates (ODHIAMBO,
2016).
 Competitive Rivalry: There are many big multinational organization those which are
operating their business in this industry successfully such as Nike, Adidas etc. this
competitive rivalry is high (Barceló Tur, 2015).
Bowman's strategy clock
It is the model which was introduced by Cliff Bowman and David Faulkner. It gives
detail about available strategic options and how company can use these options for retaining
consumers in the organization for longer duration (Ali, 2015). Several elements of this model in
respect to Brown's are as following:
 low price and low value
 Low price
 Moderate price
 Differentiation
 Focused differentiation
 Standard product
 High price
 Low value standard price
As per the given case of brown's footwear firm, company adopts differentiation strategy
(Browns Sports Footwear Case, 2016). Cited firm concentrates on innovative products and
providing such goods that can create value for the customers (Hanke, 2017). This helps the
Brown's in gaining competitive advantage.
SWOT analyses
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Strength
Strong British brand image is the main strong point of Browns. Its differentiation strategy
makes it unique brand. It concentrates on quality, comfort and durability that attracts many
clients towards the entity. Brown is listed in top international UK based fashion magazine
(ODHIAMBO, 2016).
Weakness
Poor management is the major drawback of the company. Slow delivery, clunky return
process decreases its sales volume and spoil its brand image. Furthermore, over staff, slow
adaptation to the latest trends create issue for the business in sustaining in the market for longer
duration. After recession Browns highly reliable on third party seller (Ali, 2015).
Opportunities
Young people are more aggressive for buying fashionable sport wear. Growing kid
market, female market is another opportunity for the business. E-commerce is another
opportunities for the cited firm (Dimitrakopoulou, 2015).
Threats
Adoption of Hi-tech innovation can create issue for the Browns because it may be
possible that competitors can fulfil needs of consumers by providing them innovative products.
Shortage of raw material, declining cattle production can create issue for the business (Loveson,
L., 2015).
Recommendations
For improving performance of the company it is essential to adopt several strategies so
that Browns can sustain in the market for longer duration:
 Browns should concentrates on information technology. It should engage in online
media, by this way it will be able to attract more consumers towards the brand. Use of
advance technology will be beneficial in improving efficiency level of operations of the
cited firm.
 Browns should expand its business into China, US, Japan, Europe etc. This will support
in attracting more potential buyers towards the brand and enhancing sales revenues of
business (Browns Sports Footwear Case, 2016).
 Brown should provide wide range of products and services to consumers and should
improve its delivery system. By meeting with the needs of consumers, it will be able to
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sustain in the market for longer duration. Designing eco- friendly products etc. can
enhance its brand image and can retain loyal consumers in the firm for longer duration.
 Selling of heritage products is the great strategy that can support in growing well in the
future to Browns (Browns Sports Footwear Case, 2016).
PART 2
For working in the shoe industry it is essential for the individual that to have necessary
skills such as innovation capabilities, management skills. It is the industry where many jobs are
available such as designer, manager, sales manager, plan manager etc. But it is essential that
individual must have managerial skill so that individual can guide others well. Apart from this
concern person must have administrative and innovative skill. This can support them in
analysing the market situation and making changes in the workplace accordingly. This is the way
through which individual can be able to perform their duties well. Individual must have technical
skill for working in the shoe industry (Chisholm, 2015). As market trends are changing with the
rapid speed in such condition it is essential for the firm that to hire technically sound people in
the organization those who can deal with the latest technologies well. These people will be able
to improve efficiency level of operations and will contribute well in gaining competitive
advantage to the business unit (Browns Sports Footwear Case, 2016).
CONCLUSION
From the above report it can be concluded that Browns has strong market reputation in
the market but still it is required to make some changes in its strategies so that entity can sustain
in the market for longer duration. Offering innovative products as per the needs of consumers
can help the entity in sustaining in the market for longer duration.
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REFERENCES
Books and Journals
Ali, F., 2015. The role of sustainability in strategic thinking in Norwegian shipbuilding
industry (Master's thesis, NTNU).
Barceló Tur, M. C., 2015. Marketing Plan" MBC Fest".
Bisson, C. and Diner, Ö. Y., 2017. Strategic Early Warning System for the French milk market:
A graph theoretical approach to foresee volatility. Futures. 87. pp.10-23.
Chisholm, J., 2015. Unleash Your Inner Company: Use Passion and Perseverance to Build Your
Ideal Business. Greenleaf Book Group.
Dimitrakopoulou, P., 2015. The Development Of A Bussiness Strategy Model For A Luxury
Brand.
Hanke, M., 2017. Success factors for implementation of novel decentralized diagnostics: How
publicly funded multidisciplinary innovation networks can disrupt German
Healthcare (Doctoral dissertation, Hochschule Furtwangen).
Loveson, L., 2015. Using strategic analysis to develop a business: case: Prevelante.
ODHIAMBO, C. J., 2016. Response strategies adopted by public benefit organizations in kisumu
county, kenya to changes in the competetive enviroment.
Online
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ortsFootwearCaseStudy1_1518839230.pdf>
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