Vans: Skating on Air

Vans: Skating on Air
1. Problem Statement: The key issues in the Vans: Skating on Air case are how to drive the next stage of growth for the company. To arrive at this answer, management must consider which product categories Vans should participate in, which distribution channels Vans should be in and how to integrate into the places their customers want to be.
2. SWOT Analysis :
STRENGTHS:
 Well-recognized Lifestyle Brand
 Strong Distribution Channel: Items Sold in 12,000 Domestic Locations (2002)
 Good price & Good Quality
 Broad Product Mix
 Very experienced/Proven CEO WEAKNESSES:
 Business Lines too Scattered
 Lifestyle Brand Turns off Certain Segments

OPPORTUNITIES :
 Increase Brand Awareness through More Digital Exposure – Product Placement
 Become a First-mover in New Extreme Sports Offerings
 Sponsor More Televised Competitions THREATS:
 Competition from Large, Medium and Smaller Companies Looking to Gain/Steal Market Share
 Imposter/Counterfeit Goods Produced Abroad
 Smaller niche brands gaining market by using the Vans business model

3. Potential Solutions: Option 1 Option 2 Option 3
Description of Option Positioning - Vans should continue to sustain Skate-Shoe market share and even try to grow Skate-Shoe market share by focusing marketing on under 14 year olds. (Segmenting-Age) Product Placement - Create another Fast Times at Ridgemont High moment. Acquisition - Acquiring one of their competitors. Going after a smaller niche competitor is an “easy ” way to grow market share.
Overall Assessment Skate-Shoes are Vans’ core competency . The Skate-Shoe market is $800MM and 85% of Vans’ sales are from this product line. They have a commanding market share and should be able to grow. This will be difficult because you are not guaranteed to have a cult hit. Recommend because growing market share through a bolt-on acquisition seems like it could be the easiest option to achieve, however it will