Mercury Athletic Footwear

Topics: Athletic shoe, Cash, Big-box store Pages: 4 (654 words) Published: April 23, 2014
Overview of Active Gear:
1. Active Gear is a relatively small athletic and casual footwear company $470.3 million of revenue and $60.4 million of EBIT compared to typical competitors that sold well over a $1.0 billion annually Company executives felt its small size was becoming more of a disadvantage due to consolidation among Chinese contract manufacturers. Specialty athletic footwear that evolved from high performance to athletic fashion wear with a “classic” appeal. Casual/recreational footwear for walking, hiking, boating, etc.. Affluent urban & suburbanites in the 25-45 age range (i.e. “Yuppies”). Brands are associated with upwardly mobile lifestyle. Department & specialty stores – no big box retailers. 2. Company strengths:

By focusing on a portfolio of classic brands, Active Gear has been able to lengthen its product lifecycle. In turn, this has led to less operating volatility and better supply chain management as well as lower DSI 3. Company weaknesses:

By avoiding the chase for the latest fashion trend and avoiding big box retailers, the company has had very low growth 4. Mercury was a subsidiary of a large apparel company
As a result of a strategic realignment, the division was considered to be non-core. 2006 revenue and EBITDA were $431.1 million and $51.8 million respectively Under the egis of WCF, Mercury’s performance was mixed. WCF was able to expand sales of footwear, but was never able to establish the hoped for apparel line 5. Products, Customers and Distribution:

Men’s and women’s athletic and casual footwear. Most products were priced in the mid-range. More contemporary fashion orientation Typical customers were in the 15-25 age range. Primarily associated with X-games enthusiasts and youth culture Products were sold primarily through a wide range of retail, department, and specialty stores – including discount retailers

6. Company strengths:
Established brand and identity within a well-defined niche market that seems to be growing....
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Mercury Athletic Footwear Essay
  • Mercury Athletic Footwear Essay
  • Mercury Athletic Footwear final Essay
  • Essay about Mercury Athletic Footwear Case
  • Mercury Athletic Footwear: Valuing the Opportunity Essay
  • Mercury Athletic Footwear: Valuing the Opportunity Essay
  • Mercury Athletic Footwear Case Study Research Paper
  • Mercury Athletic Footwear Essay

Become a StudyMode Member

Sign Up - It's Free