Dynomite Shoes Final Presentation
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Dynomite Shoes Lana Walters Matt Hornyak Cody Johnson Ye Zhu
description
This was a group presentation about a shoe company that we were responsbile for managing of the course of one semester.++
Transcript of Dynomite Shoes Final Presentation
Dynomite Shoes
Lana WaltersMatt HornyakCody JohnsonYe Zhu
Strategic Vision
Our goals are to: use economies of scale to keep
manufacturing costs below the industry average for each year
increase advertising to stimulate demand and increase revenues
capture 10% of the market share in all regions
promote a positive company image by having an image rating of at least 70.
Marketing Mix
Internet High quality Many models offered
Wholesale Most profitable High market volume Global presence
Private-Label Newest industry Median S/Q at a higher price
Global Market Area
North America Wholesale segment was main focus
Europe-Africa Focused on private-label despite other
offeringsAsia-Pacific
Bombarded all segments with many models
Latin America Focused on private-label despite other
offerings
Production Strategy
Plant Location Based on changing market trends Adaptable Focused on sales forecast to determine
when to expand.Labor Utilization
Ethics Training from year 11-20 and in the future.
Low Pay + Overtime = Balanced Work Environment
Financial Strategy
Debt & Equity Financing Minimal amount of debt to finance large
projects. Short-term loans only.
Dividend Policy & Rationale Low dividends to remain competitive.
Internet Competitors
In terms of retail price and market share in years 19 & 20.
North America
Europe-Africa
Asia-Pacific Latin America
A1 Saucey Shoes
A1 Saucey Shoes
A1 Saucey Shoes
A1 Saucey Shoes
ENORMOUS Shoes
ENORMOUS Shoes
ENORMOUS Shoes
ICANDY
Holy Sh..oes Cash-Shoes Cash-Shoes Cash-Shoes
Wholesale Competitors
In terms of retail price and market share in years 19 & 20.
North America
Europe-Africa
Asia-Pacific Latin America
A1 Saucey Shoes
A1 Saucey Shoes
A1 Saucey Shoes
A1 Saucey Shoes
ENORMOUS Shoes
ENORMOUS Shoes
ENORMOUS Shoes
K Company
Holy Sh..oes Cash-Shoes Blitz Shoes Inc
ICANDY
Private-Label Competitors
In terms of retail price and market share in years 19 & 20.
North America
Europe-Africa
Asia-Pacific Latin America
A1 Saucey Shoes
A1 Saucey Shoes
Gorilla Shoes A1 Saucey Shoes
ENORMOUS Shoes
Blitz Shoes Inc.
ENORMOUS Shoes
Blitz Shoes Inc.
Holy Sh..oes Jacers Jacers Cash-Shoes
Overcoming Competitors
Add capacity to each plantKeep prices competitive in the
wholesale marketTaking advantage of under-served
markets in the private-label sectorKeep advertising at a competitive
level
Dynomite Shoe Trends
Net Revenues
-Increasing Trend-
-Year 17-Inventory shortages in
North America and Latin America.
Earnings Per Share (EPS)
-Increasing Trend-
93rd Best in Global Top 100 @ $15.52 during
Year 20
-Best in Industry-Year 13 @ $3.24Year 15 @ $6.45Year 16 @ $7.57Year 18 @ $11.85
Return on Equity (ROE)
- Stable Trend-Steady Increase
-Second Best in Industry-
Year 11 @ 15.9%Year 13 @ 16.1%Year 14 @ 20.3%Year 16 @ 21.6%
Credit Rating
- Increasing Trend-
- A+ Credit Rating for 6 Years -
Stock Price
- Increasing Trend-
- Best in Industry-Year 13 @ $43.56
- Second Best in Industry -
Year 14 @ $76.57Year 15 @ $122.86Year 16 @ $121.35Year 18 @ $213.38Year 20 @ $256.67
Image Rating
- Inconsistent Trend-
Average = 68
Although we failed to meet investor
expectations for 6 years, we were in the same vicinity as our closest
competitors.
Market Share
North America
Europe-Africa
Market Share (continued)
Asia-Pacific
Latin America
Product Market Share
Product Market Share Shown in # of Pairs Sold
Product Market Share Shown as a
Percentage
Overview
Competitive Position We are a leading brand by offering a high S/Q
shoe.
Sustainable Competitive Advantage▪ Market Area▪ Increased production capacity to 18,700,000 (in North
America and Asia-Pacific) to meet demand in all product areas.
▪ Product Area▪ One of the first companies to offer a 7-star shoe.▪ Use a large amount of superior materials▪ High quality shoe at a high price (status symbol).
Strategies for Year 21 and 22
Producing 8 star shoes
Selling more shoes from Private-Label
Keeping a high price in the Wholesale market
Build more capacity
3 Year Plan
Year 21 Year 22 Year 23
EPS $24.00 $24.00 $25.00
ROE 24% 24% 24%
Credit Rating A+ A+ A+
Image Rating 80 85 85
Stock Price $320.00 $340.00 $350.00
Projected Year 21 Performance
The total revenue and profit change was 47.8% and 54.2% from Year 20.
Net Revenue = $1,152,600
Net Profit = $234,546,000
Production = 18,700,000 in Capacity
Private-Label Plan
Wholesale Market Plan
