Guccermes Case Summary

Year 12 results forced the I Guccermes management to seriously take the notice of company performance that is not doing well. After a long discussion among I Guccermes company co-managers, I concluded that we should reevaluate the company strategy and offer higher quality products and lower the price a little bit. I believe this strategy can lead to the increase of market shares. In order to achieve maximum profit and top position in footwear market, I think we also need considered about the private label segments. In the year 13, I think it is better to continue with focused differentiation strategy because the company needed to offer more models in the market which was our weakness in the previous years. The advertising budget needed to be increased, as more number of models were planned during this year. Asia-Pacific and Latin America were on our top priority for advertising as they were noted in the previous years that our sales were quite low in those regions. It was also noted in the previous year that our
With adoption of the new strategy, our competitive strengths retail price, advertising and model significantly increased. Because of the change in strategy and improvement in retail segment, at the end of year 13 Company received very good response in the private label segment and got satisfactory results in other segments like revenue from $319,205,000 in the year 12 to $369,920,000 in the year 13. Net profit was $24,157,000 with the ratio of earnings per share equal to 2.36. Even the stock price stood at a respectable $23.13 and 87 image rating was achieved. These outcomes show that the company is steadily improving under this strategy. All this showed the positives for our company for the upcoming year, which I think we will use the similar strategies to promote steady