A Case Study And Lecture Assessment Answer

• Demonstrates understanding of a wide range of strategy models and ability to appropriately apply them using the information from the case study.

• Demonstrates understanding of the case study organisation and depth of insight and synthesis from the analysis of each model and analysis of the overall strategic position (synthesis of SWOT analysis).

• Recommendations are based on the earlier analysis and demonstrate good understanding of Ansoff and the case.

• Good evidence of academic reading. Good use of Harvard referencing.

• Report is well structured and presented; arguments are coherent, logical and persuasive.

Answer:

Introduction

Browns Sports Footwear is the number one in selling its rubber sole sport sneakers, shoes and trainers which is a family owned brand. The brand is still competing with other brands like Nike and Adidas as they are back by them in the competition. In the late 80s the brand was worn by high profile celebrities Madonna, Princess Diana and Prince William in his school days.

The report is based on Browns Sports Footwear by analyzing its strategies and models top get an in depth insight of the organization. The performance can be even better in all aspects by creating demand for the company by recommending future strategic actions taken (Bhushan and Rai, 2004).

Strategic Models

The various strategic models used in Browns are given below:

PESTLE Analysis

Political

In the year 2010 it was seen that the footwear industry was accounted for 5.4% of total household expenses and that

raise to 5.7% in 2014. This result shows that UK footwear market has grown by 24% in the last 5 years from £1.3billion in 2010 to £1.7billion in 2014. This increased resulted due to raising concerns about being fit and healthy. In the year 2014 the amount £1.7billion spent from that it is seen that 19% was on running shoes and 35% was made for general use. The age group between 25-34 years brought trainers 49.7% in the last 12 months. One of the highest purchases made in this section and in age group between 15-54 years this can be said that 40% of the individuals have brought trainers. The above information is generated from the table given below:

Economical

Browns invested a huge amount which affects can be seen in the late 90s and in the year 2002 recession took place. This results the brand in closing down its shops and making use of third party for selling their products like Foot Locker and Schuh. At present Browns have only 4% of UK footwear market and globally it can be evaluated the fall has reduced from 8% to 2%.   

Social

The consumers prefer celebrity endorsed brand footwear such as Catwalks and various designers such as Channel, Tom Ford etc.  Celina promoted sneakers for £600 a pair and stars like Michael Jordan, Pharrell Williams made promoting of brands Nike and Adidas. The younger generation of people is changing their purchasing habits by preferring latest footwear available in market (Birkinshaw, 2004). The female market has increased for sports shoes and the company has to be socially responsible to the community.      

Technological

In UK most of the manufacture makes shoes from leather and suede as it depends on the availability of raw materials. This has increased the cost of production in the last 5 years as the cost of leather has increased in global market.  The product manufactured by Browns has to be developed in technology by using innovative footwear.

Legal

The staffs are excess in Browns so to preserve the company has cut down its cost and they are ethical company so they follow the rules as per UK footwear market.

Environmental

The products used for manufacturing the footwear are environmentally friendly as the technology used for making is leather and suede it is affecting the market (Chung et al., 2007). The cattle production has reduced due to effect from both sides of demand and supply.

Value Chain Analysis

Fig: 1 Value Chain Analysis

[Source: www.affino.com]

Value Chain Analysis is the process by which organizational functions and activities are examined. This can be achieved by creating customer value (Jeyarathnam, 2008).   

Porters Five Forces

It is used by the organization to judge the profitability of an industry which can be evaluated by the competitive pressure (Powell, 2014).  The five forces are as follows:

Competitive Rivalry

The brand is facing rivalry from many strong competitors such as Nike; Adidas etc. as in the footwear industry have grown over years. The customers are loyal to the brand by having engaging the masses through online selling.

Threat of Substitution

The growing of substitute products in the section of casual footwear products such as Havaianas, fit flops, crocs and Birkenstocks in sunny days. In cold days one can use Dr Martens, Timberlands, Uggs and Kickers have lost fashion from trainers and fashion sneakers. Trainers have filled the gap of traditional formal footwear in classrooms where sports shoe and formal shoe has kind of been abolished.      

Threat of New Entry

This risk is low in case of Browns footwear market as investment required is huge for this market. The brand is innovating and creating new designs to attract more customers (Sadler, 2003). The brand is making is appearance in public my marketing on social media, online sites etc. for making its presence felt.  

Bargaining Power of Suppliers

The raw materials used are leather, rubber and cotton which are easily available from many suppliers. It is abundant in market so it is low in case of suppliers.

Bargaining Power of Buyers

The buyers belong to age group between 15-54 years in looking for trainers as they are the customers. The product used need to be developed as in late 80s the brand was preferred by many individuals. The price of the products has to be in accordance with the needs of the buyer so it is high for them (Saloner et al., 2001). 

SWOT Analysis

From the various models used in the Browns footwear in UK it can be said that the strategy followed by the brand is from its heritage. According to him people are looking back in their 80s for fashion and the EBay stock is selling them at higher prices.  He states that average selling price is £57 which is ahead of its competitors. He adopted the strategy of inventing man size shoes starting from 5 to 6 as women are purchasing it frequently. He repositioned the brand by giving the look of retro and heritage feels of late 80s. The brand is making an online presence in the market by selling more innovative and heritage products which is the uniqueness of the brand. As the competition is high in market it is impossible for new investors to start new business of footwear in UK (Stoney, 2001).

Recommendations

• As per Ansoffs Matrix the strategy used by Browns in each level are different. The footwear brand can enter into the market by selling the heritage products. At this level the company can increase their consumer base by existing in the market. This can be achieved by judging the geographical or psychographic segments by expanding sales.
   
• The product development can be done by R& D department by using public relations, investment measure etc. The use of IT software for better product development by using touch screen models by helping the customers in choosing their footwear design (Warner, 2010).
   
• The market developments can happen by making its presence felt outside UK by focusing on other regions for attracting customers
   
• The diversification of Browns can happen by the brand by introducing sportswear section of T-Shirts, Yoga Pants, Track pant etc. 

References

Bhushan, N. & Rai, K. (2004) Strategic decision making. London: Springer.

Birkinshaw, J. (2004). Strategic management. Cheltenham, UK: Edward Elgar Pub.

Chung, W., Tan, K. and Koh, S. (2007). Modelling strategic business decisions. [Bradford, England]: Emerald.

Foss, N. (2007). Strategic belief management. Strategic Organization, 5(3), pp.249-258.

Jeyarathnam, M. (2008). Strategic management. Mumbai: Himalaya Pub. House.

Powell, T. (2014). Strategic management and the person. Strategic Organization, 12(3), pp.200-207.

Sadler, P. (2003). Strategic management. Sterling, VA: Kogan Page.

Saloner, G., Shepard, A. and Podolny, J. (2001). Strategic management. New York: John Wiley.

Stoney, C. (2001). Strategic management or strategic Taylorism?. International Journal of Public Sector Management, 14(1), pp.27-42.

Warner, A. (2010). Strategic analysis and choice. New York: Business Expert Press.