R.M. Williams: Innovation Strategy and Business Model Analysis Report

This report provides a comprehensive analysis of R.M. Williams, a renowned Australian shoe manufacturer specializing in high-end leather boots. The report identifies the company's current market challenges, including increasing competition and shifting customer preferences. It proposes an innovative solution: the development of a new product line that combines the stylish design of R.M. Williams boots with the health benefits of reflexology shoes. The report explores the feasibility of this product innovation, considering the company's resources and market conditions. It then applies the Osterwalder and Pigneur business model to outline the key partnerships, activities, value propositions, customer relationships, customer segments, key resources, channels, cost structure, and revenue streams associated with the proposed innovation. Critical success factors for the implementation of this new product are also discussed, emphasizing the importance of a seamless combination of style, health benefits, and appropriate pricing. The report concludes that the successful launch of this innovative product requires careful planning, execution, and marketing to ensure its acceptance and success in the market.

Running head: THINK BIG
THINK BIG
Name of the Student
Name of the University
Author note:

1THINK BIG
Abstract
Shoe industry is one of the most lucrative industries in Australia and there is a steady demand
of good quality shoes across Australian region. R.M Williams is one of the famous shoe
maker brands in the country specialising in leather boots which are stylish and costly. These
high ends leather boots are categorised as luxury and high end shoes. Though this brand is
famous with considerable amount of goodwill recently there is a trend of declining number of
customers and even loyal customers going to new brands. It is found that the other companies
are giving many categories of shoes which the customers are willing to try. As solution a new
kind of product is suggested that will propel the brand to higher sales. The Osterwalder and
Pigneur business model is utilised.

2THINK BIG
Table of Contents
Introduction................................................................................................................................3
Customer/Market Problem.........................................................................................................4
Benefits of the idea in solving the Problem...............................................................................4
Feasibility...................................................................................................................................5
Business Model: Osterwalder and Pigneur................................................................................6
Critical Success Factor...............................................................................................................6
Conclusion..................................................................................................................................7
Reference:..................................................................................................................................8
Appendix....................................................................................................................................9

3THINK BIG
Introduction
Every business at some point of time faces problems in increasing its sales or number
of clients and customers. There are saturation points when old strategies do not work and
there needs to be new strategies put into practice after much brainstorming and innovation
(Sahut & Peris-Ortiz, 2014).
R.M Williams is one of the most famous shoe makers in Australia which produces
quality shoes and is considered one of the branded shoes of the Australian region. Australia is
famous for luxury items and most businesses that deal with luxury items are successful in this
region (Selvanathan, Selvanathan & Keller, 2016). The company was established by RM
Williams himself learnt the art of leather work and during the year 1932, considering his
son’s illness he started making and selling leather products and soon had a factory running in
the backyard of his father’s house in Adelaide (Rmwilliams.com.au., 2018).
The company became immense successful over the years and apart from making
boots they also started making hats and clothing’s. Footwear however remains the top
product preference of the company till date. Though the company is one of the most preferred
shoe brands in Australia there have been certain problems in regards to its business activities.
There are many new brands that are coming to the industry and posing competitive threats to
the company. Also the other companies are providing alternative and innovative products
such as shoes needed for people with certain problems in their feet.
The company in order to remain in the competition and maintain its position in the top
brands of Australian shoe makers needs to bring innovation in its business model to resolve
the various problems it is facing in maintaining its business activities.

4THINK BIG
Customer/Market Problem
Shoe industry has various categories and there are companies dedicated to producing
different kinds of shoes. There are leather shoes, shoes for rainy season, rubber shoes, and
shoes like crocks which are of multipurpose and different kind of other shoes. RM Williams
deals with shoes which are mostly of formal or party wear category and which are costly and
high end. The design of the shoe is of boot category. The company enjoys a high reputation
in the scenario, and the products which are produced are of high demand in the Australian
Market.
However there are a number of shoe companies that are a number of companies like
Christian Kimber, Wootten, Bared Footware, Eve & Kane, Roberts & Hassett among others
that engage in tough competition in the Shoe industry of Australia. Each of these shoe makers
have their own forte of shoe making. Other than their own signature products there are
various other kinds of shoe making in which they endeavour in excelling. For example
Wootten apart from designing the signature Bespoke shoes which are customised and
especially designed, they also make formal and casual shoes for their customers. Eva & Kane
was mainly known for the driving shoes they made which was their specialisation, however
presently they have increased their product range to a number of other kind of shoes
including stylish party shoes and other accessories. The problem of the company is they are
losing customers to other brands and even loyal customers are moving to new brands to
experiment.
Benefits of the idea in solving the Problem
Business problems that arise in the company has to be dealt with innovative solutions.
The highest body of the management is dedicated to brainstorm ideas that will help in
resolving the problems, increase revenue and expand business (Qian & Haynes, 2014). The
first idea that can be implemented in the case of R.M Williams is increase the range of

5THINK BIG
products. The company is mainly dedicated to the manufacturing of leather boots. There are
various collections of leather boots that the company offers. However people have
requirement of various kinds of footwear in various circumstances. The company should push
the R&D department to experiment on various other categories of shoe making and also
expand on the style.
One of the fastest growing section of shoe industry is shoes with health benefits.
Shoes of this category is often called Reflexology shoes (Dougans, 2016). They have several
health benefits that makes them attractive among customers. The shoes helps the athletes
from recovering from injuries. Problems like headaches, depression, Insomnia, Stress and
anxiety disorder can be treated by usage of these shoes. Therefore the company may consider
combining the stylish boot design of its own to the health benefits of the reflexology shoes.
This might be a complicated process, but hiring experts and including high profile shoe
makers along with health professionals may ultimately help the company in being successful
in making such shoes. The innovation will be immensely popular as both the aspects of style
and health benefits is included in this plan.
Feasibility
Considering the scale of the company and its past records it is not a big deal for the
company to include many experts from both the fields of health and design to work together
in the R&D department to make the proposed shoes. The company has financial stability
which will help the company in investing the required amount of money to make the shoes.
Therefore the shoes are feasible to make.
Not just making the shoes by implementing the innovation, the new model of shoes
needs to be marketed very cleverly so that it becomes very popular and the potential
customers who are planning to buy party shoes or other categories of stylish footwear, may

6THINK BIG
buy shoes from the company considering the health benefits related to it, because Australian
customers are very sensitive to marketing campaigns and they do not sway very easily
(Bhattacharya, 2014). The marketing plan will include the advertisement campaigns in social
media, TV and newspapers. The new products must create a hype in the market hence big
posters are also necessary. The company has enough funds to spend for the marketing
campaign, so the plan us feasible.
Business Model: Osterwalder and Pigneur
The proposed business innovation and company activity is understood by applying the
Osterwalder and Pigneur model (Osterwalder & Pigneur, 2010). . The Key Partners of this
business are the designers and the shoe makers, apart from the external suppliers. In the new
model the partners who are planned to be included are health professionals. Key activities of
the business include production of shoes (mainly boots) and other accessories. Value
proposition of the company lies in the fact that the company produces best quality leather
boots which are most stylish and very durable. The company has maintained a high degree of
customer relationship by establishing dedicated helpline and a fast exchange policy. The
customer segmentation include the people who are targeting to by costly stylish shoes, they
do not mind to spend considerable amount of money for good product. Key resources of the
company are its expert shoe makers, high quality raw materials and goodwill in the market.
Channels which are used by the company include social media sites like facebook, twitter,
and instagram, television, newspapers and hoardings (Dijkmans, Kerkhof & Beukeboom,
2015). The areas where the company has to spend is buying the raw materials for making the
shoes, the payment and wages to the employees, and the marketing and advertisement
campaigns. The revenue stream comes from the selling of the shoes. (Refer to Appendix
Table 1)

7THINK BIG
Critical Success Factor
Critical success factors are the factors without the presence of which the possibility of
the business model innovation is not possible. The first critical success factor for this case
would include the proper implementation of the combination of health benefits of the
reflexology shoes along with the style factor of the boots that is produced by the company.
This combination must be done perfectly with ease so that people find the products both
attractive and comfortable. Another critical success factor is keeping the price low.
Conclusion
Therefore it can be safely concluded that the new innovative idea of launching the
new product which combines health benefits with style will be successful if everything is
done rightly. What is very necessary is to take the managerial and decision making steps very
carefully so that the pricing, designing and marketing is done properly and perfectly.

8THINK BIG
Reference:
Bhattacharya, M. (2014). Business growth, size and age: Evidence from the Business
Longitudinal Survey (BLS) data in Australia. Australian Economic Papers, 53(3-4),
129-138.
Dijkmans, C., Kerkhof, P., & Beukeboom, C. J. (2015). A stage to engage: Social media use
and corporate reputation. Tourism Management, 47, 58-67.
Dougans, I. (2016). Reflexology: An introductory guide to foot massage for total health.
Pavilion Books.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for
visionaries, game changers, and challengers. John Wiley & Sons.
Qian, H., & Haynes, K. E. (2014). Beyond innovation: the Small Business Innovation
Research program as entrepreneurship policy. The Journal of Technology
Transfer, 39(4), 524-543.
Rmwilliams.com.au. (2018). Handcrafted Leather Boots, Clothing & Belts - R.M.Williams.
Retrieved from http://www.rmwilliams.com.au/
Sahut, J. M., & Peris-Ortiz, M. (2014). Small business, innovation, and
entrepreneurship. Small Business Economics, 42(4), 663-668.
Selvanathan, E. A., Selvanathan, S., & Keller, G. (2016). Business Statistics: Australia New
Zealand with Student Resource Access for 12 Months. Cengage AU.
Key Partners
 Designers
and the
Key Activities
 Production
of shoes
Value Proposition
 The company
produces
Customer
Relationships
Customer
Segments

9THINK BIG
shoe
makers.
 The
external
suppliers.
 In the new
model the
partners
who are
planned to
be included
are health
professiona
ls.
(mainly
boots) and
other
accessories
best quality
leather boots
 Most stylish
 Very durable
 Dedicated
helpline
 Fast
exchange
policy
 People who
are
targeting to
by costly
stylish
shoes
Key Resources
 Expert shoe
makers
 High quality
raw
materials
 Goodwill in
the market
Channels
 Social
media
 Website
 TV
advertiseme
nts
 Newspaper
advertiseme
nts.
Cost Structure
 Buying the raw materials for making the shoes
 The payment and wages to the employees
 Marketing and advertisement campaigns
Revenue Streams
 Sales of the Shoes.

10THINK BIG
Appendix
Table 1: Osterwalder and Pigneur