Essay about Volcom Strategic Audit

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Volcom Strategic Audit

Steven L. Roop
Dennis P. Sable

National University
September 2012

Volcom is a manufacturer of Boardsport related clothing and accessories. Based in Velcro Valley – south of Los Angeles – the company’s core values speak volumes about their marketing and sales goals and objectives. The Volcom philosophy, stated as, “youth against establishment”, implies that their aim is, at the very least, different from normal capitalist “Free Trade” established ways and means, and their history highlights the differences. The new Volcom “New Future” initiative is an example of their sales and marketing direction. As Derek Sabori, Volcom's senior director of the department of sustainability and
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Business Strategy 23 c. Functional Sections 24

Current Situation
Current Performance Although Volcom holds a relatively small market-share compared to its competition: | 2008 | 2007 | 2006 | Volcom | 0.7% | 0.6% | 0.8% | Nike | 8.3% | 8.0% | 7.9% | Quicksilver | 2.2% | 2.4% | 2.6% | Billabong | 1.9% | 1.6% | 1.7% |

…even in a down-turning economy, Volcom’s 2008 consolidated revenues increased 24.5% to $334.4 million from 268.6 million in 2007. This portends great things for the future.
Volcom has found, or was founded in (and is nurturing) the boardsport niche in apparel and accessories. It does not look to grow quickly, but to take advantage of this niche.
It is also expanding the ancillary markets to this niche in both music and video. Music and video have been a small portion of the Volcom portfolio (about 1% of earnings), but based upon the fact that the music and video arenas are wonderful marketing tools – and that they are making, and not costing, profit – they are worth much more than this 1%. Add to that the fact that at any moment a video or audio component to “catch-on” and rise to the top. Such an event (or events) would add exponentially to the bottom line. Between profits and marketing, a “star” could mean millions added to the net income.
Volcom is also gradually expanding its foreign presence (income from foreign markets up by 125% in the last 4 years).
As of December 2008, Volcom owns 13 branded retain outlets and
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