Athletic Co. Industry 5

Submitted By Saeed-Arafeh
Words: 3325
Pages: 14
Open Document
Athletic Co.
Industry 5

Said Arafeh
President & Vice-President of North America
Bhavna Bhoodhoo
Vice-President, Finance & Europe Africa
Matthew Christopher
Vice-President, Marketing & Asia Pacific
Amandeep Sidhu
Vice-President, Production & Latin America

April 1, 2015

Table of Contents
I. EXECUTIVE SUMMARY 1
II. FINANCE 3
Situation Analysis 3
Past financial results globally 3
Past financial results by region 8
Objectives 9
Strategies 10
III. MARKETING 11
Situation Analysis: 11
Global sales and market share 11
Sales and market share by region 12
Objectives 13
Strategies 14
IV. MANUFACTURING 15
PART A Plant Capacity and Production 15
Situation Analysis: 15
Overview of the Global Situation 15
Overview of the regional situation 15
Objectives 15
Strategies 16
PART B Branded Manufacturing Costs per Pair 16
Situation Analysis: 17
Global 17
Plant by plant 17
Objectives 17
Strategies 17
PART C Labour costs and performance 17
Situation Analysis, by plant 17
Objectives 17
Strategies 17

I. EXECUTIVE SUMMARY

Athletic Co. operates in the branded and private label sector producing athletic footwear all around the world. The company manufactures shoes in 3 different regions: North America, Asia Pacific and Europe-Africa. The consumers are targeted by the high celebrity besides that there’s a high demand because of the very low price compared to major competitors.
After the downfall that occurred in year 13 because of the unsuccessful change in the company from a competitive price to a low price low quality, the company lost a lot of market share but in year 15 and 16 we started growing our revenues and market share by being very competitive with the price. The main reasons for profit lagging was the low quality produced compared to other competitors with the bigger share in the market who are producing high quality athletic shoes. After year 14 failure to get the bid accepted in the region of North America because of the higher price than the average bid the company’s inventory ended with lots of unsold products.
With the strong optimistic growth of the market in the next three years. Athletic Co. will self-assure a much higher market share in the four regions, and certainly getting higher revenues and return on investment by being confident that we’ll confidently overcome our weaknesses. SWOT Analysis on Company Operations To-Date:
Strength:
Low price of branded products
Fast delivery to retailers
Credit Rating of A+
Weaknesses:
Low quality shoes compared to competitors
High days of inventory
Low Numbers of retailers
Low Advertising
Opportunities:
Forecasted Strong growth in the world market
Private label undersupplied in Latin America and Europe Africa regions
High celebrity appeal in the market
Threats:
Competition from D-Way Shoes with high quality shoes
Free Shipping offered by other competitors
Objectives

The company’s objectives for the next three years are stated in the following Pro Forma income statement.

Actual 16
Forecasted 17
Forecasted 19

$000
%
$000
%
$000
%
Revenue 291,129
100
401,854
100
577,855
100
COGS 171,612 59 188,847 47 244,659 42
Gross Profit 119,517 42
144,750
36
213,748
37
Operating Expense 74,300 26 81,157 20 98,087 17
Operating Income 45,217 16 63,593 16 115,661 20
EPS
3.27
5.43
8.69

Strategies
Athletic Co. plans to achieve these planned results with a combination of the following strategies:

To increase market share and sales revenue:
Increased expenditures on advertising in all regions in order to achieve and maintain the strongest marketing program in the industry.
Introduction of free shipping in order to increase the company’s share of the internet markets.

To increase profit margins:
Maintenance of the company’s low price with more use of costly superior materials to increase S/Q rating and increased emphasis on other factors such as TQM quality control, training, styling and features at all plants
Increased
Show More

Related Documents: Athletic Co. Industry 5

Nike Marketing Plan Essay

marketer of footwear, apparel, equipment and accessory products - Offers footwear and products to sports such as tennis,golf, baseball, football, bicycling, volleyball, wrestling, cheerleading, aquatic activities, hiking, outdoor activities and other athletic and recreational activities -Nike is the number 1 distributor of althletic footwear bringing in 20 Billion in 2011 -materials Nike flywire, Current Marketing Situation: Segmentation: - Nike…

Words 1746 - Pages 7

Questions On Nike

for kids. In addition, Nike sells products that are for entertaining uses or uses for other athletic such as golf, tennis, baseball, football, cricket, lacrosse, volleyball, outdoor activities, and running, all over the world. Additionally, the firm markets athletics clothing and accessories, and sports bags, as well as sells clothing with expert team, permitted college and league symbols. Moreover, it markets a variety of performance equipment, such as eyewear, sport balls, gloves, golf clubs, socks…

Words 1878 - Pages 8

Speedster Athletics Case Study Essay

not continuing to rely on debt to run operations OR may they not be taking advantage of any increased profits that financial leverage may bring. Speedster Athletics Company- CEO Letter 5/12/2013 ( ( ( CEO of Speedster Athletics Company Bangalore, India 560001 Dear CEO Speedster Athletics debt ratio has increased over the past few years indicating the company has relied on debt to finance assets to meet business-operating needs. The company’s long-term debt…

Words 1049 - Pages 5

Final Case 2 Nike Inc Essays

emphasis on value-investing, Kimi Ford is considering buying shares of Nike, Inc. Nike, Inc. An athletic shoe manufacturer, Nike, Inc. had a stagnating revenue of $9 billion from 1997-2001. Net income of the company had also fallen from $800 to $580 million. Nike’s market share in athletic shoes had dropped from 48% (1997) to 42% (2000). To address the current performance, Nike’s management has the following plans: Develop more athletic shoe products in mid-price segment Push its apparel line…

Words 1095 - Pages 5

Summary: Should College Athletes Get Paid

$1 billion more than the revenue generated by all NBA teams combined in the 2004-05 season.” (Paying College Athletes: Should the National Collegiate Athletic Association (NCAA) pay college athletes?). Everyone here can probably think of some friend or family member that has gone on to do their sport in college, but do you know their stance on getting paid in college for their sport? College Athletes, and society itself are divided on how the NCAA is using its’ revenue that the athletes generate…

Words 1386 - Pages 6

Lululemon Case Analysis Essay

Athletica, Inc. Created by: Kelsey Davis GBA 490-901 March 21, 2014 Table of Contents Executive Summary To: Laurent Potdiven Chief Executive Officer Lululemon Athletica Inc. This report has been created with the intent to analyze the athletic apparel industry with a specific focus on Lululemon Athletica, Inc., further refered to as Lululemon. In this report you will find that the strengths and weaknesses of Lululemon’s current strategies and future goals are analyzed and compared to that…

Words 4318 - Pages 18

New Balance Athletic Shoe Company: Situational Analysis Essay

Situation analysis New Balance Athletic Shoe Company has been ranked the third in the US Athletic shoe industry. During the financial year 2007, it recorded revenues of $1,630 million, an increase of 5.2% over 2006 (www.businessweek.com). Since the athletic shoe market is highly competitive, New Balance is trying to figure out how to compete in this highly competitive market against such industry giant like Nike, Adidas/Reebok. Below is a SWOT analysis of New Balance. SWOT analysis Strengths…

Words 1839 - Pages 8

Nike's Financial Analysis Essay examples

The Nike brand domestic retail account base includes a mix of footwear stores, sporting goods stores, athletic specialty stores, department stores, skate, tennis and golf shops, and other retail accounts. During fiscal 2011, our three largest customers accounted for approximately 23% of sales in the United States. Fiscal 2011 was a rewarding and challenging year. NIKE, Inc. delivered record revenue and earnings. Nike did it by leveraging resources and relentlessly pursuing bigger growth opportunities…

Words 4311 - Pages 18

Essay on Lululemon Internal Analysis

America, therefore increasing sales per square foot To keep on utilizing strong brand equity to increase the company’s brand awareness among the target, therefore remaining positioned as a status symbol and remaining positioned at the top of the market To continuously differentiate products through technological innovation and secure patents for developed fabrics, to lead to stronger brand recognition for the company To broaden the target the brand is…

Words 2541 - Pages 11

Essay about Nike Erp

Nike manufactures athletic shoes for multiple sports including, soccer, running, basketball, and tennis, as well as athletic apparel Frances J. Rey Bus205 and fitness equipment, which are sold in over 160 countries around the globe and employs over 30,000 workers. Nike has over 600 factory contracts which employ over…

Words 2335 - Pages 10