Common Strategic Frameworks & Justifications:
* Porter's Five Forces: Analyzing the competitive landscape through this lens helps identify opportunities and threats. This involves examining:
* Threat of new entrants: How easy is it for new competitors to enter the international market? This informs decisions about market entry strategy (e.g., joint ventures vs. wholly-owned subsidiaries).
* Bargaining power of suppliers: How dependent is the company on specific suppliers? This dictates supply chain strategies and potential for price negotiation.
* Bargaining power of buyers: How price-sensitive are consumers in the target market? This informs pricing and marketing strategies.
* Threat of substitute products or services: Are there readily available alternatives to the company's footwear? This highlights the need for product differentiation and innovation.
* Rivalry among existing competitors: What is the level of competition in the target market? This influences competitive strategies (e.g., cost leadership, differentiation).
* Justification: This framework provides a structured analysis of the external environment, leading to informed strategic choices and a robust justification for those choices.
* Value Chain Analysis: This examines the company's internal activities to identify areas for improvement and cost reduction. Analyzing each stage – from design and sourcing to manufacturing, distribution, and marketing – can reveal opportunities for efficiency gains and competitive advantage.
* Justification: Improving efficiency and effectiveness along the value chain directly impacts profitability and competitiveness in the international market.
* Ansoff Matrix (Product/Market Expansion): This helps decide on growth strategies:
* Market penetration: Increasing market share in existing markets with existing products.
* Market development: Expanding into new international markets with existing products.
* Product development: Introducing new products to existing markets.
* Diversification: Introducing new products into new markets.
* Justification: This matrix provides a clear framework for choosing a growth strategy tailored to the company's resources and risk tolerance.
* CAGE Distance Framework: This helps assess the challenges of entering a new international market based on:
* Cultural distance: Differences in language, religion, and values.
* Administrative distance: Differences in political systems, legal frameworks, and trade regulations.
* Geographic distance: Physical distance and transportation costs.
* Economic distance: Differences in income levels, consumer behavior, and infrastructure.
* Justification: This framework highlights the potential risks and challenges of international expansion and allows for a more nuanced strategy considering these factors.
Developing a Strong Justification:
Regardless of the chosen framework, a strong justification needs to:
* Be data-driven: Use market research, financial data, and other relevant information to support your claims.
* Be realistic: Acknowledge potential challenges and risks associated with the chosen strategy.
* Be specific: Clearly outline the steps involved in implementing the strategy and how it will achieve the company's objectives.
* Be consistent: Ensure that the strategy aligns with the company's overall mission, vision, and resources.
* Address potential risks and mitigation strategies: A comprehensive strategy anticipates potential obstacles (e.g., political instability, currency fluctuations, cultural misunderstandings) and outlines plans to overcome them.
In conclusion, the best strategy for a footwear international case study is the one that is most appropriate given the specific circumstances and is supported by thorough analysis and a well-reasoned justification. Utilizing a combination of the frameworks mentioned above will usually lead to a more robust and defensible strategy.