This report is presented to Senior Management team. The aim of this report is to provide an analysis of Vietnam and Steve Madden brand. In addition, this report also gives solutions to consider the opening of new branch of Steve Madden in Vietnam.
Steve Madden is a company from USA that manufacture footwear. Nowadays, Asia becomes the good prospect for western countries to expand their company to earn more profit. Vietnam is one of the developing countries that can be a good place for Steve Madden to expand a new branch there. However, Senior Management is not sure the best choices to enter the Steve Madden brand into Vietnam.
This report covers only SWOT analysis of Steve Madden, business level strategy, market entry strategy, and culture analysis. This report does not guarantee the accuracy of the information provided.
2.0 Situation Analysis
Steve Madden Ltd manufactures fashion footwear. The situation analysis can be described as the SWOT analysis. SWOT analysis is a framework based in strategy formulation to indentify the strengths, weaknesses, opportunities and threats of the company (Hutchings 2009, 11). Internal factors consist of strengths and weakness. Strengths are positive internal characteristics that can be applied to reach its strategic performance goals in organisation (Samson and Daft 2009, 264). Strengths owned by Steve Madden have some variations. Steve Madden is one of the most American’s successful shoe designers (Steve Madden n.d.). Furthermore, the style of Steve Madden is known as young, unique, interesting and creative designs. The thick and chunky heels of Steve Madden’s products became the phenomenon in women’s shoes. Steve Madden has strong brand reputation. This brand is very popular with the celebrities. Moreover, it has strong information technology, fast delivery of new products, design, and trends. Organisational performance that is restricted by the internal characteristics is called weaknesses (Samson and Daft 2009, 264). For its weaknesses, the brand positioning in consumers’ mind is dated or too expensive. There are many undifferentiated products with its competitors. There are two factors of external environment; opportunities and threats. Opportunities are defined as the organisation that has the potential to achieve its strategic goals. Threats mean external characteristics that make the organisation hard to achieve its strategic goals (Samson and Daft 2009, 265). Steve Madden has these opportunities; on the horizon including re-packaging, new store design, expand in the global market, updating consumer’s idea of the company to create demand for product by, online market, distribution center in US. Furthermore, Steve Madden faces threats in some cases where it has local competitors, global competitors and minimum vertical integration. The example of the competitors that have been in Vietnam are that Aldo, Pedro, Ever best and Charles & Keith.
3.0 Business-level strategy
Competiting internationally in the global economy, it is necessary for companies to have well understanding of the business environment. Porter’s industrial analysis is useful instruments of environmental analysis (Johnson and Scholes 2002). 3.1 Potential new entrants
Potential new entrants are crucial structural components with an industry to limit or prohibit the entrance of new competitors. The more difficult it is for other firms to enter a market, the more likely it is that existing firms can make relatively high profits (Gillespie 2007, 188). The major components are scale economies; differentiation, capital requirements and cost disadvantages. Economic of scale are derived from incremental efficiency improvements through experience as a firms grows larger. Steve Madden might face dilemma when confronting current competitor’s scale economics, such as ALDO group and Charles & Keith. Generally, every company wants to reach their goals to reach the maximum profit....