This dissertation is about competitive strategy and how the author believes that the organisation ‘Clarks’ have used competitive analysis techniques to address the downfall in their profits, turn around sales and return to profitability. The dissertation will also look at attitudes towards Clarks during the last 4 or 5 years and whether recent increased marketing activity, during 2004 and 2005, has changed public perception of the brand.
1.1 What is competitive strategy?
“Competitive strategy is the search for a favourable competitiveposition in an industry……to establish a profitable and sustainableposition against the forces that determine industry competition.
Two central questions underlie the choice of competitivestrategy…….attractiveness of industries……and ….the determinants ofrelative competitive position within an industry.” (Porter).
Within this dissertation the author will try to determine thecompetitive strategy used by Clarks and whether it has been asuccess.
1.1.1 Why undertake a competitive analysis
By undertaking a competitive analysis, an organisation can determinewhere it fits within an industry and what the driving forces within theindustry are. If a competitor analysis is also undertaken, then theorganisation can observe the tactics of the competition and make acounter or first move. It is not the author’s intention to undertake adetailed analysis of the industry, rather to reflect on such trends andhow the effects thereof have impacted on the case study organisation,Clarks, and forced it to take measures to refocus and improve uponprofitability.
1.1.2 Proposition
A general proposition emerges from these observations to provide focus for this study
>>That there is a link between the undertaking of a competitiveanalysis and the change in the operating profits of Clarks.
This will be explored during the discussion in the literature review and by refining the aims in the