Case Analysis: Footwear (India) Ltd.

Group-E:[Keerthi(305),Manasa(326),Azhar(339),SharatReddy(CMU 105),Murthy(349),Muralidhar(325),Nikhi(333)]

1. What is the main issue/opportunity/problem? This case mainly is revolving about the problem of the decrease of market share of the Foot Wear (India) Ltd., from 60% (1990s) to 40%(2005-2006) due to the heavy competition its getting from the branded competitors like Nike, Reebok and Adidas due to the quality of shoes and other types of products relating to that segment and its main concentration to retain the lost position in the market and to attain profits.

2. Why is this issue important? This issue mainly affects the companys stand with in the business environment which is due to the decrease of their market share which in turn affects the profits of the company and also there is a necessity for the restructuring of their distribution channels and their franchise stores. 3. What are the controllable/uncontrollable variables? Controllable Variables:  Restructuring of the distribution channels and their franchise stores  Relationship between the retailers of urban cities and the local entrepreneurs of the rural cities  Managing of the sales executives in those particular retail outlets.  Incentives given to the sales people. Uncontrollable Variables:  Expectations of the consumer behavior  Fluctuations in the shares of market  Competition in the market controlled by strong union Communist Party Marxist (CMP)

4. Who are all the interested parties in the issue and why? The interested parties in the issue are Footwear (India) Ltd, Michael S Williams (CEO), Rakesh Tandon (National Sales Manager), franchise stores and independent retailers. These are all the interested parties because the decrease in market share will affect the revenues and profits of Footwear (India) Ltd, franchise stores and independent retailers. 5. What alternative approaches can be taken to address the issue? First Approach: This approach mainly to introduce new models of the footwear into the market to attract the lost customers as it is facing tough competition from the branded competitors. Second Approach: This approach is to analyze the competitors strategies that they are following that present situation and accordingly develop the contrast model or follow their strategy to sustain the market. Third Approach: This approach is to give large discounts on its footwear for a limited period which automatically attracts more no: of customers and which in turn increases the sales of the company. Fourth Approach: This approach is mainly focus on the restructuring of the organization structure where most part of the retail outlets of this particular footwear industry have to concentrate on all types of level of incomes that exist in the market (i.e.,)low, middle and high.

6. What objectives, policies, strategies, tactics and actions would be taken with each?

 By the introduction of new models the company has to invest lumsum amount of money into R&D. The company should do market research to know the customer needs and design new products according to the needs and expectations of the customers  With this approach the main advantage is that it helps the company to analyze the present market situation and which enables them to survive in the market with the normal increase of the market share.  Coming to giving huge discounts, the company should be ready to bear huge expenditure and also it has to spend huge amount of money for advertising about the di scounts that it is offering.  With this the main advantage is that the Footwear India can be able to concentrate on all types of levels of incomes and develop ment of the products according to the customer needs of those levels.

7. What are the potential effects on sales and profits and the likelihood of those occurrences? If we employ all these approaches the sales and profitability of the company will increase. If we introduce new models, the sales will increase and at the same time the profits of the company will also increase. If we give huge discounts, the sales will increase but profits may not increase immediately due to the huge revenue loss the company may incur due to discounts. If we analyze the competitors strategies, the loss of share in the market can be covered up to a certain extent which helps them to survive in the market. With the restructuring of the organization structure of the company, there will be more concentration on the all levels that of income segments of the market which incurs huge profits and sales to the company.

8. Choose one of the alternatives and defend why your choice is best. Restructuring of the organization structure is the best alternative approach because it mainly helps the company to focus on all types of income level segments (low,middle,high)because most of the retail outlets concentrating only on some type of segments which is the main reason on the decrease of the market share and also able to analyse the present market situation of the market and accordingly development of new products can be done. 9. What are the future implications on the interested parties if your recommendation is implemented? The sales of the company will increase and as a result the profits of the company will also increase. Introduction of new products will increase the brand value and in future it will result in further increase in profits. Increase in the strength of brand image also will increase the market share.