Elite Feet Manager’s Report June 25, 2013 Introduction This manager’s report provides a financial performance review of the business operations for athletic footwear industry’s Elite Feet for production Years 11 through 18. Included in the report are trends in company’s annual total revenues, earnings per share (EPS), return on equity (ROE), credit rating, stock price and image rating. Additionally reported are the strategic vision for the company, performance targets for the aforementioned production years plus the next two years, the company’s competitive strategy as well as production strategy, finance strategy and dividend policy. Also discussed is a look at the company’s closest competitors and the actions that could be …show more content…
Earnings per share fluctuated during the eight-year period from $2.50 to $6.46 and meeting or exceeding Investor Expectations each and every year for all eight years. Return on Equity investment fluctuated during the eight-year period from 15.00% to 23.50% and meeting or exceeding Investor Expectation in all but three years. Elite Feet maintained an A- or higher credit rating in all eight years which exceeded Investor Expectations in every year. Stock prices were the highest in Year 15 at $142 per share and ending at $48 a share at the end of Year 18. Stock prices met or exceeded Investor Expectation every year. Elite Feet’s company Image Rating ranged between 65 and 80 between Year 10 and Year 18 and early on failed to meet Investor Expectation in only one of the eight years. Our best market share was Year 11 when we held onto 18.09% of the market. We leveled out at around 11.6% by Year 18. Mission and Strategic Vision Statement “Encouraging Elite minds and bodies one pair of feet at a time.” Elite Feet’s mission is to inspire and foster a global sense of stateliness in footwear, provide quality products to our retailers and customers, and exemplify top-shelf corporate responsibility. We are focused on consumer needs and desires in our
The background of this paper we need to mention is that West Coast Fashions, Inc. (WCF), a large designer and marketer of branded apparel announced a strategic reorganization calling for a divestiture of certain assets, and one of the divisions it intended to shed was Mercury Athletic, its wholly owned footwear subsidiary. John Liedtke, the head of business development for Active Gear, Inc. (AGI), a privately held athletic and casual footwear company, contemplated an acquisition opportunity of Mercury that would significantly improve his business. So, he wanted to evaluate this opportunity.
Athletic footwear cannot be designed to cater to a large group as in general. It has to produceits products with a distinct difference keeping in mind the age groups or usage groups it isintending to target.
sale of Nike’s high-margin products to high-end customers. Regardless of the low cost of the World Shoes, they
The concept of market structures and competitive strategies are important when attempting to compete in any market. Understanding what market structure your product falls under can help companies develop better competitive strategies and identify potential for loss and gains. The athletic footwear industry in the United States is highly profitable and continuously growing. In this paper I will identify market structure of the athletic footwear industry, the major retailers, and competitive strategies that can be used to maximize profits.
Sportsman Shoes has been a leader in the shoe industry for more than thirty years. Sportsman manufactures and sells athletic shoes for all types of sports. The company has pursued a low-cost strategy in order to sustain their success. They sell a limited number of shoe designs and have held costs low through manufacturing efficiency and standardized operations. However, the past five years have been a struggle at Sportsman. The shoe market has seen a rise in the availability of low-cost imported shoes that has threatened Sportsman’s competitive position. As a result, company executives have decided it is time for a strategy shift.
Obviously, there is a big number of driving forces in the athletic footwear industry. Each of these driving forces has different impacts—some of them can have a more considerable effect than others on figuring out how much cross-company differences influence market shares and a number of units sold. The first line of most influential factors includes comparative prices, S/Q ratings, and a number of models offered among the footwear competitors. These three most important competitive forces affect customer decisions of which athletic footwear brand to choose. Furthermore, the decisions of customers whether to purchase one brand or another are also influenced by such forces as advertising, celebrity endorsements, the number of independent retail
The All-Star Footwear executive team worked well together to create a high-performing corporation, which excelled in competing in the athletic shoe global market. Due to the strong execution of each member, we secured first place in the BSG simulation and learned about competitive analysis in the process.
The price nears the highest it has ever reached, 179.2. This is almost an equivalent figure to what it is today (175.86). Its market capitalization is 168.41 Billion (U.S. Bureau of Labor Statistics, 2017).
Management is confident that by spending the first year perfecting and market testing the new cleat that there is a 75% chance that they will receive positive
* Current ratio of 3.53 shows that Adidaz is in a healthy situation and has the ability to pay off future debt. (Increase of 0.45).
By the use of Porter’s Five Forces model to analysis the athletic footwear market around the world; our strategy is to cut the price of footwear in the Year 11 and 12, and to increase budget of advertisement and to bid celebrity endorsements in order to boost the sales volume in a competitive industry .
The athletic shoe industry is made up of companies that produce footwear for athletic use. This is a strong industry and has been around for over 100 years. The athletic shoe industry is one of the fastest growing footwear industries and have top growing sales compared to other footwear industries (NDP Group, 2016). The key players that currently dominate the market are Nike, Adidas, and Puma (Kates & Bolduc, 2013). This paper will use the porter five forces, industry life cycle, and the key players to understand the industry. Over these years the athletic shoe industry has grown into a competitive market.
Johnson’s Shoe Emporium & Repair Shop (“Johnson’s”) is a high-end retail shoe store for men. The store will sell dressy and casual shoes, ankle boots and other accessories for men. The purpose of Johnson’s is to sell non-athletic shoes of the highest quality so that
Past seven years have seen a decline in the footwear market as the popularity of cheaper “low performance” wear increases (sector includes Converse) although there is a lack of more recent data available. However, during the economic downturn even the “low performance” segment has struggled.
As individuals, we make decisions throughout the day weighing the cause and effect, cost and benefit, risk and impact of our actions on ourselves and upon others. When taken to a larger scale, as the manager of a team, the CEO of a corporation, or the leader of a nation, the decisions exponentially increase in impact and importance.