Proposed by: Student’s Name
1. Executive Summary
2. Company Description
OrthoShoes would manufacture orthopedic shoes which would cater to the distinct needs of clients diagnosed with foot illnesses. The impetus that drove conceptualization for the business came from experience with family members, relatives, and friends who have encountered challenges in locating comfortable shoes, especially for those with foot ailments (due to illness, accidents, or physical deformities). In addition, due to the number of illnesses that affect people’s feet, like diabetes, sprains, infections, and the like, it is relevant to take into account that manufacturing shoes that cater to the specific needs of these segment are appropriately addressed (Illinois Podiatric Medical Association, 2014; World Health Organization, 2015). Thus, the business aims to produce orthopedic shoes made from very soft and comfortable materials that would fit people with foot ailments in the most specialized manner. Aside from standard designs made from soft but durable materials, people with foot deformities could seek services from footwear professionals or podiatrists, through our online website, and have specifically designed shoes tailor made to address their distinct needs.
3. Strategic Focus and Plan
The strategic focus and plan section focuses on three (2) distinct aspects: (1) the
mission/vision statements of OrthoShoes; (2) the company’s goals; and (3) core competency and
a. Mission/Vision Statements
The mission of the organization is to manufacture orthopedic shoes that would surely
cater to the distinct and specialized needs of people diagnosed with foot problems through the use of state-of-the art technology and innovative materials (locally sourced or that which could be supplied within the financial resources of the customer).
OrthoShoes plans to sell 3,000 pairs of shoes within the next six months after targeted launching date on March 2016. From the marketing goal, it is clearly discerned that the goal is specific and measurable (sell 3,000 pairs), actionable (within the next six months after launching date), realistic (since the number of pairs that are projected to be produced are well within the financial resources of the firm), and time bound (after March 2016 which is the launching date, six months from then would be on September 2016).
c. Core Competency and Sustainable Competitive Advantage
The shoes manufactured by OrthoShoes would address currently diagnosed foot ailments and cater to the distinctive needs of the clientele. In addition, the shoes that would be produced would be competitively priced; meaning, depending on the materials that would be recommended to be used by podiatrists, the shoes could be manufactured and tailored to the financial resources of the customer.
4. Situation Analysis
a. SWOT Analysis
Highlights of the strengths, weaknesses, opportunities and threats that impact OrthoShoes are shown in Figure 1.
Figure 1. SWOT Analysis for OrthoShoes
b. Industry Analysis
The orthopedic shoe industry is a specialized sector in the entire shoe industry. According to an industry report,
“companies in this industry primarily sell casual, dress, and athletic shoes, including orthopedic shoes, from physical retail locations New styles and personal income drive demand. The profitability of individual companies depends on effective merchandising and competitive pricing. Large companies have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by stocking specialty products, providing superior customer service, or serving a local market. The US industry is concentrated: the top 50 companies account for about 70% of industry revenue” .
c. Competitor Analysis
An overview of OrthoShoes’ competitors presented the following information, to wit: “major US companies include Caleres (formerly Brown Shoe Company and owner of Famous Footwear and Naturalizer), DSW, Foot Locker, Genesco, and Payless ShoeSource. Some shoe manufacturers, such as Nike, also have retail operations. Major non-US companies include ALDO (Canada), The Deichmann Group (Germany), and Vivarte (France)” .
d. Customer Analysis
The customers are diverse since the distinguishing factor that characterize them is that they are looking for a pair of shoes that are very comfortable and that the shoes manufactured by OrthoShoes would address the currently diagnosed foot ailment. As such, these clients could request for high quality products based on excellent materials, regardless of prices, as long as comfort would be optimized. Concurrently, OrthoShoes could still provide custom-made shoes to financially challenged clients by using low-cost materials without necessarily sacrificing quality. In addition, these customers could be recognized through the knowledge that custom-made shoes would definitely address the foot ailment they were diagnosed with, in the first place. As such, OrthoShoes would ensure tie-up with podiatrists to provide professional advice regarding the footwear that the client should use to address specifically diagnosed foot ailment.
Hoovers, Inc. (2016). Shoe Stores Report Summary. Retrieved from hoovers.com:
Illinois Podiatric Medical Association. (2014). Resources for Patients: Podiatry Facts and Statistics. Retrieved from ipma.net: http://www.ipma.net/?page=15
World Health Organization. (2015, January). Diabetes. Retrieved from who.int: http://www.who.int/mediacentre/factsheets/fs312/en/