Geox and the Footware Industry
Case Analysis: Geox and the Footwear Industry
4410B – Strategic Management – Professor Deane
April 30, 2011
Jacob Clelland 250 422 823
EXECUTIVE SUMMARY
The Geox group is an Italian footwear company has made its mark through technology innovation in fabrics and materials. It has been operating since the 1990s and became public in 2004. Geox focuses on providing its costomers with high comfort through technological innovation. They focus heavily on research and development in order to produce cutting edge technology that will differentiate their brand within the footwear market.
The footwear industry is a mature market with many international competitors. In Europe, the footwear is dominated by many small & medium enterprises, which gives firms more flexibility to cater to specific consumer needs. The basic drivers for consumers buying decisions include demography, disposable income, basic needs, style and new materials. Fashion trends have a major influence on the footwear industry as well as new technology. The industry is very labor intensive and most companies follow a delocalization manufacturing strategy to capture lower labor costs.
The primary market segments include Sport/Athletic, Work and Brown. Geox competes mostly in the Brown market but acts as a competitor in the Athletic market because of their focus on technology. Competition is harsher in the Sport/Athletic market as it is the largest market in the footwear industry.
Geox should continue to exploit new market opportunities embedded in technological innovation and should focus on allocating their resources to maximize returns. They should continue to search for ways for knowledge spill-over as it has lead to positive effects and complementary activities. Geox needs to effectively communicate its brand and innovation by creating uncontested market space and a niche within the industry. Geox should focus on relocating non core business activities to lower wage countries in order
4410B – Strategic Management – Professor Deane
April 30, 2011
Jacob Clelland 250 422 823
EXECUTIVE SUMMARY
The Geox group is an Italian footwear company has made its mark through technology innovation in fabrics and materials. It has been operating since the 1990s and became public in 2004. Geox focuses on providing its costomers with high comfort through technological innovation. They focus heavily on research and development in order to produce cutting edge technology that will differentiate their brand within the footwear market.
The footwear industry is a mature market with many international competitors. In Europe, the footwear is dominated by many small & medium enterprises, which gives firms more flexibility to cater to specific consumer needs. The basic drivers for consumers buying decisions include demography, disposable income, basic needs, style and new materials. Fashion trends have a major influence on the footwear industry as well as new technology. The industry is very labor intensive and most companies follow a delocalization manufacturing strategy to capture lower labor costs.
The primary market segments include Sport/Athletic, Work and Brown. Geox competes mostly in the Brown market but acts as a competitor in the Athletic market because of their focus on technology. Competition is harsher in the Sport/Athletic market as it is the largest market in the footwear industry.
Geox should continue to exploit new market opportunities embedded in technological innovation and should focus on allocating their resources to maximize returns. They should continue to search for ways for knowledge spill-over as it has lead to positive effects and complementary activities. Geox needs to effectively communicate its brand and innovation by creating uncontested market space and a niche within the industry. Geox should focus on relocating non core business activities to lower wage countries in order