Professional Documents
Culture Documents
Economies of scale Low 5 High Successful companies are operating at their full capacity. 29 3.63
Exit Barriers
Highly Medium Medium Highly
Factors Neutral Comments ScoreWeighted
: Score
Unfavorable Unfavorable Favorable Favorable
Specialized assets are not very costly and hard to get rid of so its
Specialized Assets High 4 Low 12 3.00
significantly easy to sell them off.
Foxed cost of exit is also not high and companies can close off
Fixed cost of exit High 4 Low
their businesses by following normal Gov. rules.
Foreign companies are coming up with joint ventures/association
Strategic interrelationship High 2 Low
of local companies.
License hurdles & govt. prohibition for foreign companies to enter
Government Barriers High 2 Low or exit industry is under monitoring by Government bodies and
associations.
Competitive Rivalry
Highly Medium Medium Highly Weighted
Factors Neutral Comments Score :
Unfavorable Unfavorable Favorable Favorable Score
Composition of competitors Equal Size 4 Unequal size They are unequal because of their financial variances 21 4.20
Profit margins for buyers are not very high and buyers are relying
Profit earned by buyers High 4 Low
on mass sales.
Power of Suppliers
Highly Medium Medium Highly
Factors Neutral Comments
Unfavorable Unfavorable Favorable Favorable
Score : Weighted Score
Suppliers are easily available for the supply of Leather, rubber and
Number of important suppliers Few 4 Many 15 3.75
other support materials.
Suppliers are in good quantity with various sizes and types and its
Switching cost High 5 Low
easy to switch from one to another.
Availability of substitutes Few 4 Many Substitutes are their, for example leather have non-leather material
Weakness
No continuity of leadership 0.1 4 0.4 Winning leadership lacks and a direction oriented leader is required.
Decreasing Sales 0.1 4 0.4 Sales are decreasing in late 90s.
No proper planning regarding advertisement 0.1 4 0.4 Focus on marketing campaigns is required.
No variety in fashionable shoes 0.05 3 0.15 bring more innovation in fashionable market segment.
Opportunities
E-Commerce
Acquisition of small Producers
Capturing Market where no other potential
competitor exists
Innovative products in women footwear
Effective Marketing Campaigns
Threats
Customer dissatisfaction
Price war with competitors
Increasing Competitors
Political instability
Economic threat
Changing customer preferences
Threat of international substitutes and local
substitutes
SPACE
Financial Strengths (FS) Values
Return on Equity 2
Y-Axis Ease of Exit 4
Case Flow 2
Liquidity 3
2.75
Y ES+FS 0.8
X IS+CA 1.9
CA
-4.5 -4 -3.5 -3 -2.5
FS
6
5.5
5
4.5
4
3.5
3
2.5
2
1.5
1
IS
-2 -1.5 -1 0 1 1.5 2 2.5 3 3.5 4 4.5
-1
-1.5
-2
-2.5
-3
-3.5
-4
-4.5
-5
-5.5
-6
ES