Essay Cima Mountaineering Inc

If a company decides to help differentiate its branded footwear by offering buyers 500 models/styles to choose from, then company managers should evaluate the merits of trying to reduce the $14 million annual costs for production run setup costs associated with producing 500 models/styles at each plant by

There are other footwear’s that provide the same level of comfort and satisfaction such as the shoes designed by Nike, Adidas, Bata etc. as well as sell at a competitive price.

In this report I will be talking about how Boots could use relationship marketing in the concept of the 7 P’s, the ladder of customer loyalty and total product concept.

Many of the big established shoe brands have seen consolidation and hence they have become bigger and more powerful in terms of competing with the rest.

Since its creation, Nike has proven itself as a popular brand and it has created niches by selling products such as footwear, apparels and various types of sports equipment. This paper will attempt to trace the product development of Nike shoes from its origins in conception and design to the manufacturing and production process located in contract factories in developing countries to advertising and marketing of Nike as a cultural commodity and finally, the retailing of the footwear around the world.

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 use of substitutes in the footwear industry is very high because of the large number of companies and similar products in the industry. There is a great deal of rivalry and the customers’ bargaining power is high. If the store experiences a large demand for unusual small or large sizes not kept in stock and cannot fill these request within a reasonable time frame customers could stop patronizing the store. If competitors with similar business models locate in the same area this could pose problems for the shoe store. If Johnson’s misjudges the path of current fashion and over stocks shelves with the wrong products, this could cause problems in moving merchandise.

Over the years Clarks has introduced many innovative designs such as Dessert Boots, 'Wallabees', 'Softees', 'Springers' (with air filled soles) and a CICA range of sports shoes, which has consolidated the Clarks brand as one of quality and innovation.

sale of Nike’s high-margin products to high-end customers. Regardless of the low cost of the World Shoes, they

The threat of new entrants in the athletic shoe industry is very weak. Currently the market is dominated by three major competitors, and

Social media: From the social media, we can know that the strategy of the competitor and their boots design. Some more, we can also know their consumer age and ability spend range.

Crocs’ value chain management system allowed it tremendous advantage in meeting customer needs (Business Pundit, 2008). By controlling all aspects along the value chain, Crocs could quickly adjust to customer demand, building additional shoes and fulfilling extra orders within a single selling season (von Briesen, 2009). This allowed retailers to order smaller

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.

The first alternative is to enter the "weekend" segment of the hiking boot market. As I plug and chug the number for the first alternative, I found that this alternative would not be beneficial to the company. Even though this alternative will increase demand due to its low price strategy but cost for the WX 450 boot is higher than the price charged to retailers. This alternative will give the company a negative gross margin.

Sales in hiking boots segment are growing and it’s even dominating over the mountaineering segment to reach 85% from their total sales.