COMPANY
B SHOES
BSG Simulation
Group B
Joshua Paulin
Taylor LaFrance
Munay Hamed
Vincent Montagnino
Strategic Vision
Our Company's Mission
Our Company's Vision
 The mission of Company B is to make
 Customers from North America, Europeshoes with higher quality in comfort and
Africa, Latin America, and Asia-Pacific
style for an average price for the average regions will be able to enjoy B shoes.
person.
 We are offering them a quality shoe that
 To give consumers higher quality options will be available to purchase
in footwear without spending higher
through wholesale market segment and
quality prices.
internet segment while being socially
responsible.
 Improving every step in someone’s
everyday life.
2nd Place Finish
• We started at 5th
place and then
climbed up to 1st
place from most
years but at the end
we came in 2nd
place.
Competition
 Internet Market: Company F & Company C (Compass)
 Wholesale Market: Company C (Compass) & Company D
 Private Label Market: Company A, Company C (Compass),& Company F
Internet Market Share for All
Geographic Segments
• Company F
(21.5+21.5+20.6+21.4)/4=
21.5%
• Company C (Compass)
(17.5+19.2+17.7+20.2)/4=
18.65%
Wholesale Market Share for
All Geographic Segments
• Company C (Compass)
(21+23.9+19.2+25)/4=
22.28%
• Company D
(21.2+20.5+14.8+11.8)/4=
17.05%
Private Label Market Share
for All Geographic Segments
• Company F
(28.4+28.4+27.3+23.6)/4=
26.93%
• Company C (Compass)
(26.1+26.1+25.6)/3= 25.93%
• Company A
(19.1+28.5+11+28.5)/4=
21.78
Industry End Results
Competitive Strategy – Internet Market
Original Competitive Strategy
•Set the price 1% less than the average price.
•Quality that is at least 1 S/Q Star higher.
•Only 250 number of shoe models.
•Adverting set at average price.
•May use celebrity endorsements.
•Free shipping provided.
•Maintain higher than average brand reputation.
•Use of recycled packages.
•Fair wages and compensation for employees.
•Try to get large plants in every geographic segment to reduce tariffs.
•Try to be cautious in producing and handling inventory as not to have a lot of
manufacture and warehouse expenses.
Adapted Competitive Strategy
•Have higher than average price but lower than the highest.
•A good quality shoe about 1 S/Q Star higher than average.
•Provide about the industry average number of models (400).
•Adverting set at average price majority of the time except when there was a need
to.
•Did not use celebrity endorsements.
•Free shipping provided everywhere except Latin America.
•Maintain higher than average brand reputation.
•Use of recycled packages.
•Fair wages and compensation for employees.
•Try to get large plants in every geographic segment to reduce tariffs.
•Try to be cautious in producing and handling inventory as not to have a lot of
manufacture and warehouse expenses.
• Through the revision of the internet competitive
strategy we have made increases in net revenues.
• Company B's goal was to be most profitable for
the internet market.
Competitive Strategy – Internet Market – North America
Industry Average Prices and S/Q Ratings
Company B's Prices and S/Q Ratings
Company B's Market Share
Competitive Strategy – Internet Market – North America
Year 13
Year 12
Year 11
North-America
Y-11
Market Share
Y-12
20.8%
Pairs Sold
591
Operating Profit
12.73
Y-13
16.7%
541
19.34
Year 18
Year 17
Year 16
Year 15
Year 14
Y-14
17.4%
Y-15
16.2%
Y-16
15.6%
Y-17
18.2%
627
657
694
719
18.47
21.56
21.69
27.38
Y-18
13.4%
659
16.0%
914
26.91
18.46
Competitive Strategy – Internet Market – Europe/ Africa
Company B's Prices and S/Q Ratings
Company B's Market Share
Industry Average Prices and S/Q Ratings
Competitive Strategy – Internet Market – Europe/Africa
Year 13
Year 12
Year 11
Europe/Africa
Pairs Sold
Market Share
Operating Profit
Y-11
Y-12
Year 18
Year 17
Year 16
Year 15
Year 14
Y-13
Y-14
Y-15
Y-16
Y-17
Y-18
490
550
585
638
685
708
755
978
20.4%
19.9%
18.8%
18.8%
18.3%
19.3%
18.6%
20.1%
10.80
26.07
15.26
13.05
19.61
31.48
11.92
34.72
Competitive Strategy – Internet Market – Asia/Pacific
Company B's Prices and S/Q Ratings
Company B's Market Share
Industry Average Prices and S/Q Ratings
Competitive Strategy – Internet Market – Asia/Pacific
Year 13
Year 12
Year 11
Asia/Pacific
Pairs Sold
Market Share
Operating Profit
Y-11
Y-12
Year 18
Year 17
Year 16
Year 15
Year 14
Y-13
Y-14
Y-15
Y-16
Y-17
Y-18
381
435
496
574
578
624
643
897
20.3%
19.2%
19.1%
19.0%
16.9%
18.4%
15.3%
18.5%
10.75
17.86
13.61
17.94
23.10
37.41
22.86
13.80
Competitive Strategy – Internet Market – Latin America
Company B's Prices and S/Q Ratings
Company B's Market Share
Industry Average Prices and S/Q Ratings
Competitive Strategy – Internet Market – Latin America
Year 13
Year 12
Year 11
Latin America
Pairs Sold
Market Share
Operating Profit
Y-11
Y-12
Year 18
Year 17
Year 16
Year 15
Year 14
Y-13
Y-14
Y-15
Y-16
Y-17
Y-18
380
456
512
646
550
680
726
973
20.3%
22.3%
19.8%
25.6%
17.2%
23.9%
20.7%
22.3%
5.91
13.63
6.56
11.68
23.58
31.09
48.83
48.56
Competitive Strategy – Wholesale Market
Original Competitive Strategy
•Set the price 1% less than the average price.
•Quality that is at least 1 S/Q Star higher.
•Only 250 number of shoe models.
•Adverting set at average price.
•May use celebrity endorsements.
•Maintain higher than average brand reputation.
•Use of recycled packages.
•Fair wages and compensation for employees.
• Maintain a rebate offer of 5.
• Have delivery time of 3 weeks.
• Maintain an average retailer support amount.
•Try to get large plants in every geographic segment to reduce tariffs.
•Try to be cautious in producing and handling inventory as not to have a lot of
manufacture and warehouse expenses.
Adapted Competitive Strategy
•Have higher than average price but lower than the highest.
•A good quality shoe about 1 S/Q Star higher than average.
•Provide about the industry average number of models (400).
•Adverting set at average price majority of the time except when there was a need to.
•Did not use celebrity endorsements.
• Maintain a rebate offer of 5.
• The delivery time changed from 3 to 2 weeks.
•Free shipping provided everywhere except Latin America.
•Maintain higher than average brand reputation.
• Maintain an average and sometimes high retailer support amount.
•Use of recycled packages.
•Fair wages and compensation for employees.
•Try to get large plants in every geographic segment to reduce tariffs.
•Try to be cautious in producing and handling inventory as not to have a lot of
manufacture and warehouse expenses.
• Through the revision of the wholesale competitive
strategy we have made increases in net revenues and
then plateau.
• Company B's goal was to be most profitable for
the wholesale market.
Competitive Strategy – Wholesale Market – North America
Industry Average Prices and S/Q Ratings
Company B's Prices and S/Q Ratings
Company B's Market Share
Competitive Strategy – Wholesale Market – North America
Year 11
Year 12
Year 13
Year 14
Year 15
Year 16
Year 17
Year 18
North America
Pairs Sold
Market Share
Operating Profit
Y-11
Y-12
Y-13
Y-14
Y-15
Y-16
Y-17
Y-18
2,181
2,046
2,041
2,646
3,681
3,758
2,748
2,216
14.6%
12.7%
12.5%
15.5%
21.0%
20.5%
14.7%
12.0%
7.00
10.94
8.24
7.70
6.16
12.98
12.21
8.57
Competitive Strategy – Wholesale Market– Europe/ Africa
Company B's Prices and S/Q Ratings
Company B's Market Share
Industry Average Prices and S/Q Ratings
Competitive Strategy – Wholesale Market – Europe/Africa
Year 11
Year 12
Year 16
Year 15
Europe/Africa
Year 13
Y-11
Y-12
Year 14
Year 17
Y-13
Y-14
Year 18
Y-15
Y-16
Y-17
Y-18
Pairs Sold
1,861
2,155
2,091
2,678
3,318
2,969
2,879
2,984
Market Share
14.5%
15.6%
14.7%
18.2%
21.8%
18.5%
18.7%
19.2%
3.94
15.50
17.87
1.19
15.55
2.35
2.20
9.73
Operating Profit
Competitive Strategy – Wholesale Market – Asia/Pacific
Company B's Prices and S/Q Ratings
Company B's Market Share
Industry Average Prices and S/Q Ratings
Competitive Strategy – Wholesale Market – Asia/Pacific
Year 11
Year 12
Year 16
Year 15
Asia/Pacific
Year 13
Y-11
Y-12
Year 14
Year 17
Y-13
Y-14
Year 18
Y-15
Y-16
Y-17
Y-18
Pairs Sold
1,486
1,674
1,982
2,820
3,502
3,795
3,759
3,493
Market Share
15.0%
15.4%
16.8%
22.3%
25.8%
25.4%
24.0%
21.9%
8.83
14.62
7.59
2.73
6.99
11.21
20.17
14.95
Operating Profit
Competitive Strategy –Wholesale Market – Latin America
Company B's Prices and S/Q Ratings
Company B's Market Share
Industry Average Prices and S/Q Ratings
Competitive Strategy – Wholesale Market – Latin America
Year 11
Year 12
Year 16
Year 15
Latin America
Year 13
Y-11
Y-12
Year 14
Year 17
Y-13
Y-14
Year 18
Y-15
Y-16
Y-17
Y-18
Pairs Sold
1,487
2,509
2,591
4,965
5,021
4,256
4,150
3,854
Market Share
15.0%
22.7%
22.0%
41.1%
40.2%
37.0%
35.9%
34.5%
2.02
12.37
1.98
5.63
6.55
8.28
18.29
20.89
Operating Profit
Competitive Strategy – Private Label
Original Competitive Strategy
• Company B would not pursue private label
unless necessary.
Adapted Competitive Strategy
• From Year 14 Company B became involved
in private label to gain a greater position
in the market and to sell extra shoes that
the company were making and to get rid
of extra inventory.
• Company B would pursue a higher than
average good quality shoe at a higher
than average price.
• Most of the time for the five years of private
label Company B shoes were the highest
quality shoe at the highest price.
• Through the revision of the private label competitive
strategy we have made increases in net revenues but
plateau.
Competitive Strategy – Private Label – North America
Company B's Market Share
North America
Year 14
Year 15
Year 16
Year 17
Year 18
Pairs Offered / Available (000s)
577
668
731
797
869
Pairs Sold (000s)
450
668
718
797
0
Market Share (%)
21.2%
28.4%
28.0%
28.5%
0.0%
Competitive Strategy – Private Label – Europe/Africa
Company B's Market Share
Europe/Africa
Year 15
Year 16
Year 17
Year 18
Pairs Offered / Available (000s)
668
659
797
869
Pairs Sold (000s)
536
659
797
517
Market Share (%)
22.8%
25.7% 28.5%
17.0%
Competitive Strategy – Private Label – Asia Pacific
Company B's Market Share
Asia Pacific
Year 14
Year 15
Year 16
Year 17
Year 18
Pairs Offered / Available (000s)
586
725
812
902
1,003
Pairs Sold (000s)
484
725
812
408
926
28.2%
28.5%
12.9%
26.4%
Market Share (%)
21.3%
Competitive Strategy – Private Label – Latin America
Company B's Market Share
Latin America
Year 14
Year 15
Year 16
Year 17
Year 18
Pairs Offered / Available (000s)
482
733
813
903
1,003
Pairs Sold (000s)
482
733
813
903
1,003
28.5%
28.5%
28.5%
28.5%
Market Share (%)
21.2%
Production Strategy
Facility Space
Plant Capacity and Location
Year 18 Facility Space
•To have a plant in every geographic segment to avoid tariffs and a direct foothold
in the market.
•To be able to make higher than the average plant capacity but at a cautious level
so there is not a lot of excess inventory and warehouse, administrative costs are
not too high.
Use of Overtime
•It was important to motivate and reward our employees for their hard work and
working extra shifts.
Work Force Compensation/Training
•To have fair wages and to be well prepared in their working environment.
•We respect our employees and will pay them 2% above the average
wage will increase wages when necessary after the year 11.
• Training practices will be used and will be increase sporadically to
increase productivity after year 11.
•Incentive and fringe benefits will be higher than average to increase
worker productivity without decreasing shoe quality.
•In according to work environment, we believe that employees should work
in a clean environment to continue work productivity and decrease
chances for liability.
Year 18 Production Equipment
N.A.
E-A
A-P
L.A.
Total
5,000
19,000
4,000 5,000
5,000
N.A.
Total Space Available
E-A
6,000 4,000
A-P
L.A.
6,000 5,000
21,000
Finances
Financial hardship
Year 11
Year 12
Financial Prosperity
Year 17
Year 18
Finance Overview
Click to add text
REFLECTION
What our company could have done better, and what we could do in the future
Better Decisions with Production
 Maximizing our production in all segments
 Opening the Europe-Africa plant before the Latin
American
 Keeping shoes domestic, dodging tariffs and other
international taxes/fees
 Utilizing Inventory Clearance earlier
Better decisions with Private-label
Private-label
 Based on the Performance
Highlights, the usage of Privatelabel should have started earlier
 Earnings Per Share (EPS) jumped
by 250% from Years 14 to 15
when we started to invest into
this market
 Preferably, starting in Year 12 or
13 could've presented an
advantage in the industry
Better Decisions with Finance
 Shouldn’t issue maximum stock every year
 Donate to charity
 Making sure there was a surplus of Ending Cash
 Invest into Private-label from start
 More loans
What we could do in the Future
• Continue to repurchase  Build more space in all
stocks until the amount
factories (except Latin
of issued stock is 20,000 Americans)
• Pay off the expensive
loans early
 Salvage old equipment from
all factories
• Do more charity work to
 Purchase new equipment for
increase image rating
• Focus on Private-label
• Consider paying
dividends
Latin America
 Work on selling more shoes
in the internet market
QUESTIONS?