Case Stud Geox
Situation Analysis
Company
* Manufacturing “Breathing Shoes” under brand name GEOX since 1995. * In 2002, company extended its breathability technology to enter apparel market. * 90% of its revenue is generated by sales of shoes and remaining 10% from apparel sales. * By 2009, Geox has become a global brand and is ranked the world’s 2nd largest casual lifestyle footwear sector operator. * It is doing business in 68 countries over 10,000 multi-brand points of sale and about 997 single brand GEOX shops. * Geox entered sports shoe segment in 2008. * As of 31 December 2008, net sales for the year reached 892.5 million euros, with the net income of 118.2 million euro. * It has outsourced its production to Factories in China, Vietnam, Indonesia and Brazil. * Company puts a heavy reliance on marketing and R&D. * Company takes its distribution network as of its key success factors. * Polegato’s goal for the company is to become the world’s largest shoe maker. * Due to global downturn, the company’s sales have started flattening out.
Collaborators
* Universities for research and development * Aokang Group of China is the major producer for GEOX. * Strategic alliance with Belle which is the largest women’s shoe retailer in China.
Customers
* GEOX caters to footwear needs of the entire family, its three product categories are based on the target consumer (men, women & children), and products are priced in medium to medium-high price range. * US consumers are high-end, which are ready to pay high prices for shoes, while affordability is a major factor in India and China. *
Competitors
* Clarks Shoes is presently the market leader in casual footwear segment, followed by GEOX. Other significant players are ECCO, Birkenstock, Hush puppies and Rockport. * In sports footwear segment Nike and Adidas are big players controlling 60% of the market, other smaller players are Brown Shoes, Fila
Company
* Manufacturing “Breathing Shoes” under brand name GEOX since 1995. * In 2002, company extended its breathability technology to enter apparel market. * 90% of its revenue is generated by sales of shoes and remaining 10% from apparel sales. * By 2009, Geox has become a global brand and is ranked the world’s 2nd largest casual lifestyle footwear sector operator. * It is doing business in 68 countries over 10,000 multi-brand points of sale and about 997 single brand GEOX shops. * Geox entered sports shoe segment in 2008. * As of 31 December 2008, net sales for the year reached 892.5 million euros, with the net income of 118.2 million euro. * It has outsourced its production to Factories in China, Vietnam, Indonesia and Brazil. * Company puts a heavy reliance on marketing and R&D. * Company takes its distribution network as of its key success factors. * Polegato’s goal for the company is to become the world’s largest shoe maker. * Due to global downturn, the company’s sales have started flattening out.
Collaborators
* Universities for research and development * Aokang Group of China is the major producer for GEOX. * Strategic alliance with Belle which is the largest women’s shoe retailer in China.
Customers
* GEOX caters to footwear needs of the entire family, its three product categories are based on the target consumer (men, women & children), and products are priced in medium to medium-high price range. * US consumers are high-end, which are ready to pay high prices for shoes, while affordability is a major factor in India and China. *
Competitors
* Clarks Shoes is presently the market leader in casual footwear segment, followed by GEOX. Other significant players are ECCO, Birkenstock, Hush puppies and Rockport. * In sports footwear segment Nike and Adidas are big players controlling 60% of the market, other smaller players are Brown Shoes, Fila