A strategy to be a low-cost provider of branded footwear is unlikely to result in the company being one of the best-performers i

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A strategy to be a low-cost provider of branded footwear is unlikely to result in the company being one of the best-performers i

n the industry if the company's management team fails to:_______.
1. achieve costs per pair sold for both branded and private-label footwear (as reported on p. 7 of the FIR) that are at least close to the industry-low in each geographic region, if not actually equal to the industry-low benchmark.
2. aggressively pursue private-label sales and attain market share leadership in private-label footwear sales in most every year in at least 2 geographic regions
3. establish total compensation packages for production workers that are big enough to keep their total compensation well above the industry-average in those regions where the company has production facilities--such compensation levels are necessary to achieve high worker productivity
4. maintain global production capacity (including full overtime) that is at least 5 million pairs greater than any other company in the industry--otherwise the company will be unable to capture big enough sales volumes to be attractively profitable and successfully execute a low cost/low price/high volume strategy
5. establish production facilities in all 4 geographic regions, produce and market branded footwear with a 5-star or higher S/Q rating, and achieve global market share leadership in both private-label and branded footwear

Business

1 answer:

Nady [3.6K] · Answer 1 · 2026-03-29T19:40:55+03:00

Answer:

A strategy aimed at being a low-cost provider of branded footwear may be ineffective unless the management team:_______.

5. establishes production facilities across all 4 geographic zones, produces and markets branded footwear with a minimum S/Q rating of 5 stars, and captures global market leadership for both private-label and branded footwear.

Explanation:

The U.S. market, known for its global influence and presence, cannot be overlooked by any U.S.-based company. Thus, setting up manufacturing in all 4 regions will improve the company’s market share and enhance its domestic and international image.

Leading branded footwear companies like Nike, Adidas, Jordan, and Reebok are already competing alongside numerous others in the footwear market. To reach their level of performance, achieving a 5-star or better S/Q rating is essential.

The Business Strategy Gaming (BSG) consumer group assigns S/Q ratings from 0 to 10 stars based on the styling and quality of each company's branded footwear. Medium.com mentions that aiming for at least 20% market share in every segment is vital for enhancing the BSG rating, as balanced representation across geographical areas positively impacts the overall brand perception.