Shareholders Tyler Armstrong - Business Admin (Marketing) Dec. 2010 Cameron Hendricks - Business Admin (Finance) May 2011 Matthew Purdy - Business Admin (Finance), International Studies (Europe) Dec. 2010 Suppliers – High Power Threat Demand for materials increasing; demand greater than supply Not much differentiation among competitors; many sellers to choose from Buyers – Low Power Threat Substitute Products – Low Power Threat Customers unable to use products from another industry to satisfy needs (ex: athletes) Rivalry – Low Power Threat Competitors are not determining prices and are a low threatening rival Threat of New Entrants – Low Power Threat Industry is highly competitive; industry growth rate beginning to slow down North America - Year 17 Europe-Africa - Year 17 Asia-Pacific - Year 17 Latin America - Year 17 BSG Retailer Support S/Q Rating Production Efficiency Footwear Industry Production Efficiency: What is Production Efficiency? Customer Loyalty: It’s a Community Innovation: GEO Footwear KSF Company Score Industry Avg. Strength Score Retailer Support 450 414 5 4 5 4 0.507 0.559 4 S/Q Rating Production Efficiency (Cost of Pairs Sold / Net Revenues in Y16) North American Segment – Year 16 25 20 15 Internet 10 Wholesale 5 0 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 20 18 16 14 12 Internet 10 8 Wholesale 6 4 2 0 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 30 25 20 Internet 15 Wholesale 10 5 0 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 30 25 20 Internet 15 Wholesale 10 5 0 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 EPS Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Company C 2.73 3.75 2.66 2.37 4.66 9.35 ROE Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Company C 17.0 19.2 11.3 9.1 15.4 24.4 Stock Price Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Company C 35.74 48.78 27.51 23.57 59.64 173.59 To create and sustain competitive advantage with relationship to customers, management should focus on further improving S/Q rating by increasing superior materials usage To create and sustain competitive advantage with relationship to shareholders, management should focus on maintaining the market share (in both internet and wholesale segments) that the company captured in years 15 and 16 ◦ The company should also consider increasing dividend payments given their recent success Holmes, S. (2006). Nike: It's Not a Shoe, It's a Community. Retrieved Oct. 18, 2010, from Business Week, Washington, DC. Web site: http://www.businessweek.com/magazine/content/06_30/b3994068.htm. (2003). Production Efficiency. Retrieved Oct. 18, 2010, from Investopedia, Edmonton, Canada. Web site: http://www.investopedia.com/terms/p/production_efficiency.asp. Wilson, C. J. (2003). Geox - Footwear Innovation at Its Best. Retrieved Oct. 18, 2010, from Ezine Articles. Web site: http://ezinearticles.com/?Geox---Footwear-Innovationat-Its-Best&id=4695807.