Porter’s Five Forces5
Effect of Strategy on Porter’s 56
Effect of strategy on BEAM7
Topology of Stakeholders11
Jick`s “The Ten Commandments”12
Orlikowski & Hofman14
McKinsey’s 7-S Framework16
Nadler & Tushman “Framebending”19
Tactics to Emulate20
Things to Avoid21
Holey Soles Holdings Ltd, a Vancouver-based injection-molded footwear company, was soaring to new heights in 2007 when they realized that it might be time for some strategic focus. Over the last two years the company had grown at a rate of 300% each year and had received multiple awards for its performance. The market demand was at an all-time high, and with the high technological requirements, barriers to entry for new competitors were also high. There were several untapped markets throughout the world that were huge opportunities for this industry. Holey Soles’ main competitor, Crocs had been achieving much higher sales and had established stronger brand recognition in the market. This reflected its successful recent initial public offering (IPO) and aggressive marketing tactics. They were capturing the market through this brand recognition, which Holey Soles had not yet achieved. Holey Soles needs strategic focus. The management team that has been there since the company was formed when it was much smaller, is still fulfilling their original responsibilities and may be incapable of providing the necessary leadership. The growth requires Holey Soles to streamline their operational procedures and create efficiencies. This task falls on the management team and its ability to lead the company into the future. Without strategic focus, Holey Soles is at risk of losing its market share to its biggest competitor, Crocs. Problem Statement
What strategy will deal with increasing competition, the seasonality of their current operations, changing consumer preferences, and a weak brand image, all while increasing sales to $40 million. Symptoms
1. Holey Soles currently has poor brand recognition. For this reason they may lose market share to their main competitor: Crocs. Holey Soles must determine how to strengthen their brand in the market to establish a strong market presence.
2. With the exponential growth and a $40 million sales target, Holey Soles must determine how to sustain their operations, as the company’s employees may not be prepared to handle large-scale production based on their current competency levels. Holey Soles ‘current management team wears multiple hats, and some of their responsibilities are not compatible with their competencies and expertise, potentially leading to confusion within the company.
3. The market is highly unsaturated, thus inviting multiple competitors. For this reason, Holey Soles must consider a strategy that will not only allow them to grow and attain their goal, but to sustain the growth once it is achieved.
4. Because Holey Soles’ products have a high demand during the summer months, Holey Soles is not currently making full use of their expensive equipment during downtime, thus leading to fluctuating revenues throughout the year. Having factories working below capacity for months on end is costing the company money. Holey Soles must consider a strategy that will allow them to mitigate the seasonality factor and stabilize sales throughout the year.
5. Holey Soles is currently facing operational inefficiencies due to the fact that current shipping time from China takes close to a month. Furthermore, production in China is leading to a reduction in quality of the product. Holey Soles must determine a strategy to minimize shipping time in order to provide timely delivery for orders,...