Year 11 Business Strategy Game

Sketchers Shoe Company

YEAR 11 BUSINESS STRATEGY GAME: CHAPTER 8 Chapter 8 Exercise: 50 words or less per question okay 1.In the event your athletic footwear company had the opportunity to diversify into other products or businesses of your choosing, would you opt to pursue related diversification, unrelated diversification, or a combination of both? Explain why. 2. What specific resource strengths and competitive capabilities does your company possess that would make it attractive to diversify into related businesses? Indicate what kinds of strategic fit benefits could be captured by transferring these resource strengths and competitive capabilities to newly acquired related businesses. 3. If your company opted to pursue a strategy of related diversification, what industries or product categories could your athletic footwear company diversify into that would allow it to achieve economies of scope? Name at least two or three such industries/product categories and indicate the specific kinds of cost savings that might accrue from entry into each of these businesses/product categories. 4. If your footwear company opted to pursue a strategy of related diversification, what industries or product categories could your company diversify into that would allow your company to capitalize on using your company's present brand name and corporate image to good advantage in these newly entered businesses or product categories? Name at least two or three such industries or product categories and indicate the specific benefits that might be captured by transferring your company's brand name to each of these other businesses/product categories. STRATEGY and Analytical Approaches