Strategic Management class

Is Strengthening the Superdry Brand a Foundation to Strategic Success? British-based SuperGroup, owner of Superdry and its Officer left to explore other options. Some analysts carefully banded product lines, is taking actions to deal believe that the firm's growth had been ill-conceived, with recent performance problems. These problems signaling the possibility of ineffective strategic decimanifested themselves in various ways, including the sions on the part of the firm's upper-level leaders. As need for the firm to issue three profit warnings in one one analyst said: "The issue with SuperGroup is that six-month period and a 34 percent decline in the price they've expanded too quickly, without the supporting of its stock in 2014 compared to 2013. infrastructure." Founded in 1985, the firm is recognized as a dis-_Efforts are now underway to address these problems. tinctive, branded fashion retailer selling quality cloth- In particular, those now leading SuperGroup intend ing and accessories. In fact, the firm says that "the to better control the firm as a means of protecting the Superdry brand is at the heart of the business." The value of its brand. A new CEO has been appointed who brand is targeted to discerning customers who seek believes that "the business is very much more in control" to purchase "stylish clothing that is uniquely designed today than has been the case recently. A well-regarded and well made." In this sense, the company believes interim CFO has been appointed, and the firm's board that its men's and women's products have "wide appeal, has been strengthened by added experienced individucapturing elements of 'urban' and 'streetwear' designs als. Commenting about these changes, an observer said with subtle combinations of vintage Americana, that SuperGroup has "moved from an owner-entrepreJapanese imagery, and British tailoring, all with strong neurial style of management to a more professional and to purchase "stylish clothing that is uniquely designed today than has been the case recently. A well-regarded and well made." In this sense, the company believes interim CFO has been appointed, and the firm's board that its men's and women's products have "wide appeal, has been strengthened by added experienced individucapturing elements of 'urban' and 'streetwear' designs als. Commenting about these changes, an observer said with subtle combinations of vintage Americana, that SuperGroup has "moved from an owner-entrepreJapanese imagery, and British tailoring, all with strong neurial style of management to a more professional and attention to detail." Thus, the firm's brand is criti- experienced type of management. The key thing is, it is cal to the image it conveys with its historical target much better now than it was." customer-teens and those in their early twenties. Direct actions are also being taken to enhance the Those leading SuperGroup believe that customers love Superdry brand. The appointment of Idris Elba, actor the Superdry products as well as the "theatre and per- from The Wire, is seen as a major attempt to reigsonality" of the stores in which they are sold. These nite the brand's image. In fact, SuperGroup says that outcomes are important given the company's intention Elba epitomizes what the Superdry brand is-British, of providing customers with "personalized shopping grounded, and cool. The thinking here, too, is that experiences that enhance the brand rather than just Elba, who at the time of his selection was 42 , would selling clothes." appeal to the customer who was "growing up" with the As noted above, problems have affected the firm's Superdry brand. For these customers, who are 25 and performance. What the firm wants to do, of course, older, SuperGroup is developing Superdry products is correct the problems before the Superdry brand is with less dramatic presentations of the brand's welldamaged. Management turmoil is one of the firm's known large logos. Additional lines of clothing, for skiproblems. In January of 2015 , the CEO abruptly left. ing and rugby for example, are being developed for the Almost simultaneously, the CFO was suspended for fil- more mature Superdry customer. After correcting the ing for personal bankruptcy, and the Chief Operating recently encountered problems, SuperGroup intends Week 4 - Mini Case Study. Week 4: Mini-Case Study Please complete the Mini-Case "Is Strengthening the Superdry Brand a Foundation to Strategic Success?" that is available at the end of chapter 3