This report is the final examination project leading to a Graduate Diploma in Business Administration (Marketing Management) from Copenhagen Business School in Denmark. The project is about Skoringen; a well-established Danish shoe chain consisting of 82 shops covering Denmark. During the years of 2007-2011 Skoringen’s turnover decreased relatively almost twice as much as the shoe industry as a whole. The focus of this project is to identify possible reasons for this, to formulate a growth strategy and an action plan for what Skoringen can do to turn the tide on their opportunities, threats, strengths and weaknesses. Thorough in- and external analyses are conducted and the reasons for the decrease are partly found in the external factors. During the period, consumers spent less money on shoes as a result of the crisis. As a result of the technological development, the digital consumers are growing in numbers appreciating the convenience benefits that e-commerce offers and the physical stores cannot match. While the physical shoe stores have lost -6.2% in turnover, e-commerce with shoes has increased by 41%. In other words, E-commerce is taking market shares from the stores and is driving growth in the shoe business. No doubt rivalry in the industry is growing significantly due to industry slides, e-commerce and consumers' bargaining power. Skoringen’s competitive strategy is possible, internal reason. They pursue an unfocused, "industry-wide" approach, trying to sell everything to everyone on a limited number of m2. What's more, their positioning too close to their closest competitor indicating a lack of competitive advantage. Although Skoringen’s market situation is weakened, the chain is still strong in the short term with its nationwide network of stores and its robust brand. But in the longer term, Skoringen is threatened by new business models and e-commerce convenience benefits which they cannot match today. Two growth strategies are created on the basis of the in- and external analysis that are both profitable and meet the requirements to be sustainable, feasible and acceptable. Since the time factor for the go-to-market is critical for e-commerce strategy, it is recommended to start with it and form a multichannel strategy. It builds on a growing market and Skoringen’s strong brand will serve as a foundation for the establishment of e-commerce. The physical stores will continue in their existing form. Economic changes, changes in consumer behavior and technological development are some of the driving forces that will change the retail industry in the coming years. The future winners from today's physical retailers will undoubtedly be those who take the consumers seriously and are good at managing change. With the implementation of a web strategy Skoringen are creating a future and not a past business model for themselves.
|Educations||Graduate Diploma Marketing Management and International Trade, (Diploma Programme) Final Thesis|
|Number of pages||79|