Innovation At Timberland: Thinking

Outside The Shoe Box Case Analysis

By:
Bramanti Setiadi #2001878501
Donny Jesaya Hifi #2001884896
Izma Dwi Ariesta Toana #2001903604

BUSS8006 - Agile and Disruptive Business Strategy

MM Executive Strategic Management
BINUS Business School
CASE ANALYSIS
I. Problem
•What uniting mechanism can Timberland Company administer
to achieve the fullest potential of appropriate product design and
process given the existing disparity between the In-line teams
and Invention Factory?
II. Objectives
• a. To ensure that the manufactured product is to be positively
responded by the consumers.
• b. To provide sufficient focus to ensure the best use of
resources without restricting innovation.
• c. To guarantee that there is always the presence of balance
with regards to fashion and functionality in all Timberland
products.
• d. To resolve the lack of wholesale and interest of Invention
Factory ideas as they are integrated to the mainstream of
Timberland.
• e. To improve the relationship between Invention Factory and
In-line teams.
SWOT Analysis
Strengths:
•The company has a strong name and brand recognition, which is
critical.
•In the retail industry most people recognize Timberland as some
type of shoe or outerwear clothes maker for outdoor work and
activity.
SWOT Analysis
Strengths: (Contd..)
•Timberland has the ability to argue for the quality of its
products.
•Timberland has the ability to squeeze its operating costs for
more savings. This in turn frees up cash as less gross revenue is
eaten up by expenses. Being able to produce cash during hard
times allows Timberland to be strategically stronger with
resources it can use to expand quickly when needed.
SWOT Analysis
Weaknesses:
•Timberland relies on sales overseas in Europe and Asia. As the
strength of the U.S. dollars grows or weakens, this will affect
international sales revenue. A strong dollar will decrease sales
relative to the Euro or Asian currencies as consumers in those
countries effectively buy less.
SWOT Analysis
Opportunities:
•As other competitors suffer and fail because of a lack of sales
and finicky consumers, Timberland's sales due to strong
reputation at worst have been flat. This opens up the ability to
push for gaining market share as competitors fail.
SWOT Analysis
Threats:
•Being in retail, Timberland will suffer as the economy suffers
since consumer will retrench and hold back on their discretionary
spending.
•Costco, Wal-Mart and Target look far better for necessity
clothing when one has to choose with less money. This economy-
driven behavior, which Timberland cannot control, will be cyclical
and eventually will go away.
Alternative Courses of Action
a. Allow Invention Factory to take charge of the creation of the
idea of the product to the finished output as a separate
business team from In-line teams.
• PROS:
The problem then of Invention Factory products not fully
integrating in mainstream Timberland will be resolved since
they will have the passion and knowledge to sell the product
well since they invented it in the first place.
Alternative Courses of Action
• CONS:
Since Invention Factory products will not be integrated into the
In-line teams, they will have to start from scratch and
establish legal representations, organization structure, sales
force, packaging that will be additional problems given that
Timberland has an already existing establishment of this
system within In-line.
Alternative Courses of Action
b. Taking people out of Invention Factory and putting them in In-
line teams to manage integration.
•PROS:
Complaints of In-line teams not being able to adapt or integrate
the products because they have no knowledge behind its concept
and structure will not be an issue anymore since selected
Invention Factory individuals will be able to assist in its
assimilation to mainstream Timberland better given that they
have the acquired information behind the product’s design and
saleability.
Alternative Courses of Action
• CONS:
Invention Factory personnel are not adept at marketing and
commercializing products since their forte is more on the
innovation of new concepts and ideas not taking into
consideration aesthetics of that particular concept which is
the specialty of the In-line teams to begin with.
Alternative Courses of Action
c. Bring together the issues of consumers and wholesalers in line
with the concept of the product to be put into the market. In
case of disapproval by the other, make necessary product
concept adjustments.
•PROS:
Timberland’s latest products or ideas will be assessed by
different people gathering a variety of opinions that will in turn
assist the products integration to the market since the
customers’ or wholesalers’ demands and preference are being
taken into consideration.
Alternative Courses of Action
• CONS:
This method will be more time consuming than that of the
usual statistics gathering that is done by Timberland and
variety of opinions necessarily demand a lot of adjustments
losing the purpose of having Invention Factory create and
conceptualized a new idea in the first place.
Alternative Courses of Action
d. Allow certain In-line representatives to participate in the
decision making of the product design and process when
Invention Factory will introduce its latest ideas or concepts.
•PROS:
In-line resistance in handling something that is finished or closed
to being finished will be resolved since they themselves will have
a hand in the innovation process of the new products that
Invention Factory will be presenting.
Alternative Courses of Action
• Proper adjustments in terms of marketability will be taken
into consideration earlier and effectively considering that In-
line members are specialized in that department.
• They will have a say in the product development and will
know how to position the product in the market when
integration period will begin.
• In-line will also have the right to decide which customer
segment will handle this latest innovation coming from
Inventory Factory.
Alternative Courses of Action
• CONS:
The possibility of worsening the tension may ensue given that iF
may resent the intervention of In-line teams in what they
consider as their own field. In-line teams also are not
equipped with the specialty to deal with the functionality
aspect of the product unlike Invention Factory since their
main concern is how it would necessarily penetrate to the
market.
Group Recommendation
• The group recommends the fourth option of allowing selected
In-line representatives to be involved in the decision making
process with regards to the product design and process of the
latest ideas that will be presented by Invention Factory.
Action Plan
• 1. Higher management in Timberland will assess members
from In-line teams who are capable of balancing fashion and
functionality so that they may have the necessary skills to be
the bridging gap between Inventory Factory(IF) and In-line.
They should also clearly state the roles and expectations
coming from both IF and In-line so as to not blur the lines
when it comes to the development of the new product.
• 2. After the assessment of In-line representatives, integration
of these personnel will be imposed as a new innovation begins
coming from Invention Factory so as to ensure that In-line
teams will also take part in the design process of the latest
product.
Action Plan
• 3. Necessary feedbacks and evaluations from both entities
should be made during discussions of the new concept to
assure that Timberland’s goal of having innovative products at
the same time catering to the aesthetic pleasure of the
customers will be met.
• 4. Opposing opinions should also pave way for much needed
adjustments if In-line should think that product has a low
chance of being entertained in the market or if iF thinks that
the commercialization of the product is infringing in its
innovativeness.
Action Plan
• 5. After the conceptualization of the product from both iF and
In-line, iF should also be given the privilege to have a say in
the marketing of the product after its integration to
mainstream Timberland to settle a compromise between the
two groups.
Conclusion
• In conclusion, the problem of product design and process
given the current relationship between In-line team and
Inventory Factory will be resolved by the imposed
compromise and participation of both in the innovation
process of the product.