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BSG GAME:

Company K

Muftau Salami

John Stearns

Adeisia Vaughan

Gerado Perez

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Overview

  • Ending game strategy
  • Beginning Successes
  • Ending Failures
  • Financial Performance
  • Explanation of Financial Results

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Game & Implementation Strategy

Our goal was to create a competitive advantage through an integrated cost leadership and differentiation strategy.

Arena- All regions

Vehicles- Advertising, Celebrities, Private Label

Differentiation- Low models,High S/Q

Staging- Create low cost shoes, capture market share through advertising and celebs, meet branded demand, private label

Economic logic- Get returns through low costs

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Game Data

  • 50 models until year 18
  • Ship from NA and AP until year 17
  • Sold at industry average
  • S/Q rating at 7-9
  • Above average advertising
  • Maintain 3-4 Celebrities

We increased our models in Year 18 because of projected decline in performance.

Year 11

Year 18

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Financial Statistics

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Financial Statistics

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Year 20 Slump

Year 19 Decisions

  • Completely cut out Free Shipping and Search Engine Advertising
  • Increased prices
  • Took out maximum 1 year loan

Year 20 Effects

  • Internet market share fell from 12.5 to 8.3 to 5.1 from years 18-20
  • Wholesale market share fell from 10.9 to 9.1 to 7.5 from year 18-20
  • Defaulted

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Value Created for Stockholders

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Overall Performance

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Overall Performance- Prices and S/Q Ratings

NA EA

AP LA

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Overall Performance- Market Share

NA EA

AP LA

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Strategy Changes

  • End game more conservatively
  • Take out maximum loan early in the game to purchase production equipment and have more involvement in private label.
  • Don’t take out 1 year loan
  • Have celebrities in the final 3 years of the game
  • Ship greater surplus of shoes to avoid shortfall