Professional Documents
Culture Documents
companies that had not losses this year in Latin America, with 22.5% market share, actually we
were the company that sold more in that region.
In the year 16 there was an increase of the quality to 8 stars in all regions, also we increase the
price and the numbers of models. As a results we got the 17.9% of the market share in Europe
and the same result for in Latin America, we were the most we sold in those regions. In
addition we got private label in every single region.
Year 17 was not good for us because we got a lot of sales losses which made us fall to 4 place
in the We increase the price and maintained the quality and the numbers of models. We got
the lowest percentage of market share in almost all regions at internet market segment. We
also got sales losses in all regions at whole sale segment except in North America due to out of
stock conditions. However we sold private label in all regions and as a result we got the 63.2%
of market share at least something good in all of these losses.
The year 18 was maintained with the same prices, quality and numbers of models in both
segments (Internet and Wholesale). This year we only got a sale loss in Europe region. We also
sold in private label for all the regions about 46% of market share, which kept us in fourth
place in the scoreboard. The same thing happened in the next year (19) we kept the prices,
quality and numbers of models in both segments but this year we lost of sell about one
hundred pairs of shoes in Latin America region and we also reduce the percentage in private
label to 16%.
For the last year (20) we decided to reduce the price in internet market from $83 to $80 and
we increase $0.50 in every single region of the whole sale segment keeping the quality and the
numbers of models. As a results we got too many sales losses in every region due to the huge
demand we had. We also loss market power in private label with an average about 10% in all
regions. Is necessary to say that we never hire a celebrity because every year we wanted to
hire one, other company did it from there we never made the attempt again. Finally we went
up a place in the scoreboard, ranking third among all industries.
We can conclude that CUTE Shoes Company kept its marketing strategy from the beginning
which was our competitive advantage and it was able to win its place, capturing the loyalty of
the customers and offering a good quality in the market. In addition we can say that one of
our advantage was bought the plant capacity in Latin America region which helped us with the
demand and we always did a free shipping in every single year and we also can say that we
kept a good image and credit rating than the others companies.
DESCRIPTION OF:
1. CORPORATE CITIZENSHIP STRATEGY
CUTE Shoes has always being green oriented and we have constantly supported charities and
the environment. In year 19 we won first place of the Gold Star Award for Corporate
Citizenship and others years like 15, 16 and 20 we got the second place. We have given special
emphasis to the use of recycled boxing, energy efficiency initiatives, ethics
training/enforcement and workforce diversity.
2. PRODUCTION STRATEGY
Our production strategy is related to different factors taking into consideration that our
strategy is integrated cost leadership/differentiation.
a.
Percentage of Superior Materials: since the first year we have increased the usage of
superior materials, over 60% in the Asian Pacific plant and the same amount for the
North America plant. The reason behind the increase was for raising the quality and
reaching 8 stars. Also because we realized it was cheaper to offer higher quality
b.
c.
d.
e.
f.
g.
through superior materials that any other factor, so for that reason in the last year we
got 80% for North America plant, 90% for Asia Pacific plant and 94% for Latin America
plant with an S/Q rating of branded pairs produced of 8 stars.
Number of Models: we initially started offering 200 shoes, we increased that number
to 300 until year 13 in which we reduced the amount to 100 due to got too many
demand in the market, later on in year 16 we started to increase the models to 150 in
North and Latin America region keeping Asia region with 100 different models until
the end of the game.
Enhanced Styling features: since we already use a lot of superior materials, we
managed to reduce this factor since it is the most expensive one, in this way we could
reduce the cost of each pair.
TQM/Six Sigma Quality Program: we are currently spending $0.50 in North America,
$1.40 in Asia Pacific and $1.4 in Latin America region per shoe; we have had to
continuously spend each year a bit more in order to increase the quality of our shoes.
S/Q Rating of Branded Pairs Produced: we started with a low-regular quality of 4
stars; we have worked our way to 8, an improvement of 50% always following what
our strategy was, no much models no much expensive with a good quality.
Compensation and Training: Training our workers has been a good investment that
has help us reduce the number of rejects, we have kept on spending in best practices
training and incentives, since it has truly shown to be a way of reducing the cost.
Number of pairs to be manufactured: We have increased the number of
manufactured shoes; we initiated a construction in the plant of Latin America region in
year 12 and 13 to sell 1000 more shoes. The reason of constructing in the same plant
and not going to a different region was to use economies of scale, in this way we
reduced costs and the demand.
Our marketing strategy was to be above the average of the industry being truthful to our
integrated cost leadership/differentiation strategy. As we mentioned before we increase the
S/Q rating of our shoes reaching an 8 stars, the augmentation was done in a slow way in order
to test the market.
a. Celebrities: We always wanted to sign a contract with a celebrity to help us with the
sales level but we never could get them, perhaps because we never did a good
b.
c.
d.
e.
f.
4. WHOLESALE STRATEGY
The integrated strategy allows adapt quickly to environment changes and effectively leverage
its core competencies while competing against its rivals and that was what we did first we
managed having to focus in only two plants then the new one in Latin America, second we did
it offering different type of advertising and prices depending on each region.
Our integrated strategy has proven to be quite successful; we have invested in quality and
keep above the competition in all the different indicators like price, S/Q rating, advertisement,
etc. Each year we studied the reports we learned more about the competitors, we got to know
the market and took the decisions. Weve been able to reduce costs thanks to the distribution
that was done considering the exchange rate cost adjustments for each year and also the
tariffs on pairs imported.
5. INTERNET STRATEGY
Our internet strategy was trying to keep the prices a little below the competition and also we
didnt sell too many models, since this market wasnt a main concern for us. But in general we
increased about $5 in the price in the whole years of the game also the quality from 5 to 8
stars, we always had a free shipping and with the same amount of advertisement from
wholesale segment. At the end we realized that we increased our level of online orders about
60%.
We did private label in every single region but in different ways mainly we adapted it to the
changes of the industry and the market. For North America region we did private label in all
years except in year 12, with an average sales of $31.55 and our position of the market share
was about 25%. In Europa region we did private label in year 16 to year 20 with an average
sales of $36 and our position of the market share was about 43%, this was the best region in
private label. For Asia Pacific region we did private label in all years with an average sales of
$35 and 32% of market share. Finally for Latin America region we did private label from year
14 to the end of the game and we got an average sales of $35 with about 22% of market share,
this region got the least involvement on the market.
Year 21
Year 22
$4,30
7,6%
$46
A+
77
$4,58
8,3%
$47
A+
79
These targets are based on the market situation considering also any problems within the
industry like the exchange rates situation since we did a strategic plan so we put those
knowledge already got in this situation and we hope to maintain our marks or improve them,
we considered the results of year 20 and we also played to see what would happen with our
new decisions.