Table of Contents
Porters five forces analyses6
Rivalry among present competitors6
The threat of new entrants6
Bargaining power of buyers7
Bargaining power of suppliers7
Threat of substitute products7
Skiwear industry attractiveness10
Product life cycle strategy12
The 4 Ps12
The purpose of this report is study the strategy direction for The North Face (TNF) company and make market evaluation to enter into the skiwear industry. The report will review the company’s current performance in relation to the traditional outdoor equipment market and identify sustainable competitive advantage for the new product.
TNF brand image often have often been associated with outdoor sport, exercise and a healthy life style. It also has state of art in engineering of product design. These are the competitive edge and must be utilized in establishing the new market for skiwear.
Started in 1966 in San Francisco, The North Face (TNF) is known as a high performance climbing and backpacking equipment manufacturing and distribution company. Through the 1970, the brand received increasingly popularity among outdoor athletes and began sponsoring expeditions to some of the most far flung, still largely untouched corners of the globe. Hence, The North Face mantra is Never Stop Exploring.
It is essential to evaluate the macro environment in order to assess the attractiveness of the market for TNF. The macro environment can be divided into six major components, demographic, socio cultural, economic, technological, regulatory, and natural environments (Walker, 2009).
By being the market leader in the outdoor clothing and equipment segment having approximately 40 per cent of the market share, the company has a large contingent of established customer base. The age bracket of TNF’s target market could be ranging from young to middle aged customers. They vary from profession outdoor enthusiast, which is the strategic focus, to the more general camping publics.
There is increasing momentum in the world of having a healthy life style, whereas hiking and skiing is considered as a suitable form of exercise.
The global financial crisis would have negative implication to the spending power of customers, not to a significant extent, but buyers would generally be more price and quality sensitive.
The technological advance could assist TNF in research and development which in turn engineer better quality product. It would help to promote brand awareness using mediums like the internet. Hence customer could be better informed about the range of products.
The product must comply with the Consumer Safety Act. In addition, with globalized world economy, the trade barrier is lower for international expansion.
There is an increasingly awareness in the protection of natural environment, which are often manifested in customer enjoying the mother nature, which is favorable for the image of TNF, Never Stop Exploring.
1. Engineering - TNF has product which is best made for professional outdoor enthusiast, these products have high quality and design. 2. Brand reputation - TNF...