• Deep and strong Argentine cultural roots.

Strengths • Responsible to the local society, entrepreneurship and education.

• Toehold in Europe and Argentina markets.
• Paez is less-known and easier to reposition.

• Limited capital, human and sales resources.

Weaknesses • Product line is limited to alpargata shoes.

• Too many brand associations.
• Rely heavily on wholesale partners.

• Women’s footwear market favors feel and aesthetics than brand names.

Opportunities • Global consumers stock a wide variety of shoes to reflect their freedom, desire and individuality.
• TOMS is criticized as “monetizing white guilt” and “hurting Argentine communities.

• TOMS could drive Paez out of the Europe and Argentina markets with its investments and
resources.
Threats • Distribution through wholesalers hinders direct study of customer demands and needs.
• Inflation cost and political factors can be major player for successful penetration into different
markets.
 KEY ISSUES

—Paez can only focus on optimizing its distribution channels, product lines or brand positioning one at a time
with limited resources.
—Paez needs to build its brand culture to asymmetrically compete with industry Goliath–TOMS in the long run.
—Paez doesn’t have a coherent positioning strategy in place
 BEST FIT STRATEGY

3c MODEL

Customer
• Relevant: The optimal strategy should provide value propositions that truly meet the customers’ needs
and help them with their jobs-to-be-done
• Resonant: The optimal strategy should speak to the customers with meaningful narratives and help
them “achieve values they hold to be important.”
• Realistic: The optimal strategy should leverage resources and culture capital within Paez’s inventory
along with evidentiary support.
 Company
• Feasible: The optimal strategy shouldn’t be too far-fetched from the
current positioning. Paez is limited to resources and cannot overhaul
its brand image and start from scratch.
• Favorable: The optimal strategy should have a higher ROI. It should
allow Paez to capture more market share with manageable costs
• Faithful: The optimal strategy should be aligned with Paez’s current
operations and practices
 Competitor
• Distinctive: The optimal strategy should stress Paez’s point of
difference to set it apart from other competitors.
• Defensible: The optimal strategy should leverage Paez’s strengths so
that it is not easy for competitors to replicate or counter.
• Durable: The optimal strategy should also benefit building Paez’s
brand culture in the long term, since the competition from TOMS and
other competitors will not end soon
 Strategies and Evaluation
Focus Evaluation Feasibility
Authentic Argentina Authenticity Positioning as authentic and legitimate leveraging its Optimal
Alpergata deep roots in Argentina culture, tradition,
craftsmanship and history
Fashion at a bargain Fashion, Lower price than TOMS with similar design Not optimal
price design, price
The Underdog Desired Levaraging the weakness of limited resources to Not optimal
marginality, appeal to Millennial and Baby Boomer consumers
brand who stand in opposition to big corporations.
community
An argentine lifestyle Coolness Fusion of function and fashion Optimal
brand with other
strategy
Brand for social good Social Fair trade, fair labor practices, education, minimal Not optimal
responsibility impact on environment