Footwear Business Proposal

Topics: Indonesia, Marketing, Manufacturing Pages: 6 (1836 words) Published: June 18, 2013


Neighboring countries: Indonesia shares land borders with Malaysia on Borneo, Papua New Guinea on the island of New Guinea, and East Timor on the island of Timor.
Territorial size of the country: It consists of 17,508 islands.
Size of the population: Population is approximately 237,424,363.
Type of political system: Indonesia is a republic, with an elected legislature and president.
Who is the prime minister, president? The president is Susilo Bambang Yudhoyono
What political party is in power?: Republic
How would you classify its economic system? Indonesia is the largest economy in Southeast Asia and a member of the G-20 major economies
What are the GNI and the GNI per capita PPP?  Indonesia's estimated gross domestic product (nominal), as of 2010 was US$706.73 billion with estimated nominal per capita GDP was US$3,015, and per capita GDP PPP was US$4,394

Major natural resources: Indonesia’s natural resources include crude oil, natural gas, tin, copper, and gold.
What major products are exported? The country's major export commodities include oil and gas, electrical appliances, plywood, rubber, and textiles.
What are the major imports and from which countries?  Indonesia's major imports include machinery and equipment, chemicals, fuels, and foodstuffs. Name of the currency. Is it freely exchanged? Indonesia’s currency is in Rupiah and is freely exchanged.

Executive Summary
As the managers of the company we have evaluated the different business opportunities present here in Indonesia. As a result of crucial analysis and research, considering the availability of resources, and calculated expenses, we have come up with a business proposal to create a new line of footwear. We believe that an establishment of our own line of product distribution, here in Indonesia, will prove to be highly profitable. Our plan is to start a contract with manufacturing companies where we can mass produce this new line of athletic shoes, and distribute them to stores worldwide. This brand of shoes will be called “ZOULS”. Indonesia has been listed as the top country for entrepreneurs to start a business, ahead of the United States, Canada, India and Australia, (Walker, 2011). We will work with the best new technologies and have innovative creations to get into the business and eventually get ahead of the top shoe companies. Decisions are much easier made when you have a successful role model leaving behind footprints to follow on. In this case, I am referring to the globally known and established footwear company which we recognize as NIKE. Among other major companies, such as, REEBOK, ADIDAS, and PUMA, NIKE also outsources its footwear manufacturing to Indonesia. Cost efficiency being the primary reason, these companies make a significant impression on their profit margins, leading to profitability and success. Indonesia proves to be the favorite for the footwear based industries for many reasons; however, the biggest reason is the access to the natural resources available in the country. Indonesia ranks among the top 2 countries in the world for the natural production of rubber. Nike, Adidas, Reebok, Puma, and now ZOULS will play a major role in the economic growth of Indonesia while prospering as a footwear company. Although the companies listed earlier will serve as a preliminary guideline, we pay no less attention to the fact that they will be our biggest competitors. Background

Indonesia exports rubber and other relevant products to various countries, of which, China, Japan, Singapore and the US are the major importers. The US relinquished its title as the biggest importer to China in 2008. In 2008 China imported 457 thousand metric tons, followed by the US with 394 thousand metric tons, Japan with 272 thousand metric tons and Singapore, which imported 100 thousand metric tons. (Rifin, 2010). ANRCP (Association of Natural...

Citations: Walker, Andrew . "Entrepreneurs face global challanges" Indonesia "top for" Entreprenuers 25 may 2011: 1.
Rifin, Amzul. "Quo vadis Indonesian rubber industry" the Jakarta post 04 Oct, 2010: 2.
Van Dusen, Steven. The Manufacturing Practices of the Footwear Industry: Nike vs. Competition, University of North Carolina.
US Athletic Retail Market Report, 2009 Edition,
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