You need JavaScript enabled to view it. New search. Organizational Governance Strategy and organization. Sector Industry. Year Country Argentina. Context The company Paez was founded in by 3 Argentinean friends. Paez is a summer casual footwear company founded in Argentina and headquartered in Barcelona. The company manufactures a variety of alpargata shoes that are sold mainly through its wholesalers and distributors around the world. The company is seeking to reposition itself to compete against the well established first-mover in the market, TOMS.
Based on the analysis, one of the biggest strengths of Paez is deep and strong Argentinian culture roots, social cause that company lives by, which help integrate people into the labor system through education and entrepreneurship. One of the main weaknesses of Paez is limited alpargata shoe product line, and too many brand associations.
Based on the SWOT analysis, we identify three key issues that Paez has to address in order to keep growing in the competitive summer casual shoe market:. A solid brand positioning strategy is much needed before other decisions about geography, distribution, and product line can be made. There are several alternatives that Paez could take base on the information provided in the case and our analysis.
The criteria that we use to evaluate these positioning strategies are the 3Cs model proposed by Japanese organizational theorist Kenichi Ohmae. The 3Cs model provides a framework to examine each positioning strategy comprehensively with regard to customer, company and competitor.
This model enables us to discern strategies with major flaws, which emphasize only on one C while overlooking the other two Cs. Lopsided strategies are especially dangerous for Paez as a small company, since it has no advantages on capital and sales resources to spare.
Paez is limited to resources and cannot overhaul its brand image and start from scratch. The optimal strategy should have a higher ROI. It should allow Paez to capture more market share with manageable costs.
Here we examine the alternatives provided in the case and proposed by us with the 3Cs model. The recommended positioning strategy will be discussed in detail in Party III. Recommended Strategy. This is a fast-follower strategy.
It focuses on providing customers shoes with similar designs as TOMS but lower prices in order to capture the lower end of the market. This strategy is not optimal as it is not defensible for Paez to compete on low prices and low margins with TOMS in the long run. This strategy provides desired marginality to form brand loyalty through opposition of TOMS. This strategy is optimal and should be used with other strategies together.
It leverages the culture capital Paez already has as an Argentina-founded company and resonates with the fun- and individuality-seeking customers. This strategy is not optimal. It is not distinctive and defensible for Paez.
On the hand, it would be much easier for TOMS to keep up with whatever new program Paez launches with its financial and marketing resources. As a second mover, to compete on points of parity with TOMS, is very challenging. It is not favorable. For example, the U. The best positioning strategy that we recommend for Paez is the combination of authentic Argentina alpargata and Argentine lifestyle. We call the positioning Authentic Argentina.
For , simple, genuine, social and eco-friendly women and men, Paez is the only brand among all summer casual footwear brands that offers simple, fun, and authentic Argentine alpargata shoes. Because Paez is a true Argentine company that cares about the culture, history, and local community that inspire the making of the alpargata shoes. Currently, Paez offers shoes that are fashionable with good quality and fun twist at affordable price points.
The Paez alpargata shoes are cool, confident, playful and creative. However, the main competitor TOMS, with highest market share also provides similar value offerings. Thus the optimal brand positioning strategy for Paez is to emphasize its authenticity and Argentina roots. Being able to play the authenticity game is now a fundamental requirement of marketing, the standard against which all brand strategies are judged.
Consumers are more knowledgeable and are willing to go along with brand that promises originality, integrity and value. Therafit: Candy Mesh Active. With each purchase, Therafit will make a donation to a charity you pick. Nisolo was founded by an American entrepreneur who was determined to buoy the struggling artisan-shoe industry in Peru. Each pair of Nisolos is handcrafted by a skilled Peruvian cobbler. The brand has sold shoes stamped with 3-D prints and accompanied by adventure maps. Teysha: Midnight Stroll Sandal.
Teysha is headquartered in Austin, Texas, and works with traditional artisans in Latin America to design custom shoes, boots and accessories. This content originally appeared as part of the Kudos section in the Fall issue of B Magazine. To inform and inspire people who have a passion for using….
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