Mercury is an appropriate target for AGI. AGI is looking to increase its revenue and profit by utilizing synergies. The initial aim of AGI for acquiring Mercury Athletics is to increase leverage with contract manufacturers and to boost the cooperation with the retailers and distributors. AGI was one of the most profitable and successful companies in the market segment, but the firm’s size re mained rather small in comparison with the main competitors. Therefore, with the acquisition of Mercury, AGI planned to build competitive advantage. Besides, the target company had well developed operation infrastructure, impressive labor facilities in China and numerous
There are several reasons why AGI should consider Mercury Athletic as an appropriate target for acquisition. First, acquiring Mercury could improve both companies financially. Acquiring Mercury would double AGI’s revenue. Although Mercury’s financial performance has been disappointing, they experienced top line growth of 20% in 2006. Unfortunately, their profitability has been disappointing due to price concessions to big box retailers and an unsuccessful women’s line. Mercury’s (and ultimately AGI’s) profitability could be improved by the synergies of the two companies merging. Synergies within supply chain, operations, research and development, and advertising should all improve Mercury’s EBITDA.
Lucky Brand® established in 1990 in Los Angeles California, is an apparel retailer with focus on jeans, casual wear and accessories. Lucky Brand® currently has 251 retail stores, as well as locations in select department stores and is thriving online at Luckybrand.com. This company operates as an exclusive distributor, a strategy of selling products through one or few retailers in a specific location (Tanner and Raymond.2014). The retail stores sell exclusively Lucky Brand® as does the Luckybrand.com site and within the department stores, such as Macy’s and Nordstrom, they have boutique sections dedicated to this brand exclusively. To maintain this operating model, the company has to stay relevant through the means by which the product line retail strategy and pricing are managed. This paper will review this strategy, primarily through technology strategy investments and how Lucky Brand® has managed to survive the retail industry for almost thirty years.
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.
A “SWOT analysis is a historically popular technique through which managers create a quick overview of a company’s strategic situation” (Pearce & Robinson, 2009, p3). SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. This concept was incorporated as a diagnostic tool for many entrepreneurs to work on their business. It is important as a business owner to be able to analyze forces and trends that can affect a business. The owner of Sivalry Clothing Company will discuss several capacities of the business operations and forces and trends that the business will have to encounter. Such topics include: economic as well as legal and regulatory forces and trends, how well the organization adapts to change, and the supply chain operations of the organization. Also, identification of issues and opportunities that the company faces will be discussed.
Strategically, Company G seemed to rely solely on volume sales with a low price point in all markets: Internet, wholesale, and private label. Their “basis for competitive advantage is lower overall costs than competitors…finding ways to drive costs out of their businesses and still provide a product…that buyers find acceptable.” (Thompson, Peteraf, Gamble, & Strickland, 2012) With an SQ rating of 5, quality was not a distinguishing factor; low costs were.
American Eagle Outfitter, Inc is recognized as an apparel company in the field of highly trendy clothes and accessories retailers. Its products are found in more than 1,000 retail stores around the world and online. This essay presents an identification of what actually the company offers. In addition, it is an analysis of the positioning map where is compared American Eagle with its key competitors Abercrombie and Fitch and Urban Outfitters, a projection of the firm in the retail life cycle compare to its key competitors as well, and a SWOT Analysis that shows a list of the strengths, weaknesses, opportunities, and threats of the this. The essay provides also actions the company could make to be more competitive and stand out in the Apparel
WeaveTech, formally known as Johnson-Ware is a military and security apparel company entering into the high-end performance clothing market. Before the acquisition by CVX Partners, WeaveTech which was formed in 1905, relied exclusively on the military (70%) and security (30%) customer base. The need to change the company’s customer base from military and security to high-end performance clothing market apparently arose from the allure of the later market segment and the dwindling growth of the military and security market (Beer & Swiercz, 2015). The departure of Jack Davidson, a retired US Navy Rear Admiral, and WeaveTech CEO from 1983 to 2012 in addition to the conclusion of the Afghanistan and Iraq Wars meant that the traditional market was losing its reliability. Due to the unreliability, there was a need to redesign the customer base and to take advantage of the high-end market segment.
Account W/P Common Common # Title Ref. Balance Size Balance Size Amount Percentage REVENUE 40000 Sales 246,172,918.44 102.33% 245,213,452.88 106.40% -959,465.56 -0.39% 41000 Sales Returns 4,497,583.20 1.87% 13,600,220.89 5.90% 9,102,637.69 202.39% 42000 Warranty Exp 1,100,281.48 0.46% 1,158,128.47 0.50% 57,846.99 5.26% Net Sales 240,575,053.76 100.00% 230,455,103.52 100.00% (10,119,950.24) -4.21% EXPENSES 50000 COGS 141,569,221.61 58.85% 130,246,645.26 56.52% (11,322,576.35) -8.00% Gross Margin 99,005,832.15 41.15% 100,208,458.26 43.48% 1,202,626.11 1.21% GA-7.4
West Coast Fashions, Inc has decided to sell one of their segments, Mercury Athletic in the context of a broader reorganization. The head of the business development for Active Gear, Inc(AGI), John Liedtke, views this event as a good
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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.
Gucci Group is a luxury goods retailer focusing on improving their market share while producing high quality fashionable items. Initially, Gucci’s poor business strategy and internal family conflict directly resulted in decreased sales and net income. When Investcorp took control of the company, Gucci regained their success through quality management and acquisitions. Gucci’s product line now includes a large range of products. We would like to continue Gucci’s success and believe that the next major business decision for Gucci is how to manage the new acquisitions. We recommend that Gucci cease further acquisitions of companies to its portfolio and should not challenge the status quo by making big management changes
New Balance was founded by William J. Riley in 1906 in the city of Boston. Riley started by making arch supports for customers who had to spend all day on their feet. Over time the building of arch supports led to the creation of his first running shoe in 1925. As part of a local running club, Riley capitalized on an opportunity to improve running shoes of the time and his designs became widely popular. His new running shoes became so popular that by the 1940’s that production spread from running to many other sports. Then the expansion of the manufacturing significantly increased as he realized a need to running shoes with more selection for wider feet, and
This case study of Footwear International demonstrates the cultural differences in society. It shows the consequences when a society, like Bangladesh, get interpreted the wrong way by the people. John Carlson from Footwear International experienced an innocent mishap within his company, which had disrespected many people. He needs to let the people know that it was an honest mistake and that Footwear International will do whatever it takes to correct the problem.