Question
A strategy to be a low-cost provider of branded footwear is unlikely to result in the company being one of the best-performers in the industry
A strategy to be a low-cost provider of branded footwear is unlikely to result in the company being one of the best-performers in the industry if the company's management team fails to
a) maintain global production capacity (including full overtime) that is at least 5 million pairs greater than any other company in the industry--otherwise the company will be unable to capture big enough sales volumes to be attractively profitable and successfully execute a low cost/low price/high volume strategy.
b) establish production facilities in all 4 geographic regions, produce and market branded footwear with a 5-star or higher S/Q rating, and achieve global market share leadership in both private-label and branded footwear.
c) establish total compensation packages for production workers that are big enough to keep their total compensation well above the industry-average in those regions where the company has production facilities--such compensation levels are necessary to achieve high worker productivity.
d) aggressively pursue private-label sales and attain market share leadership in private-label footwear sales in most every year in at least 2 geographic regions.
e) achieve costs per pair sold for both branded and private-label footwear (as reported on p. 7 of the FIR) that are at least close to the industry-low in each geographic region, if not actually equal to the industry-low benchmark.
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