Question

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

Answer 1

Answer:

A strategy to be a low-cost provider of branded footwear is unlikely to result in the company being one of the best-performers in the industry if the company's management team fails to:_______.

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.

Explanation:

The U.S. market is an important market with global reach and image which a U.S. based company cannot neglect.  So, establishing production facilities in all 4 geographic regions will help the company to achieve higher U.S. market share and enhance its domestic and global image.  

Market branded footwear companies like Nike, Adidas, Jordan, Reebok, etc., are already competing with about 5 others in the global market for footwear.  For a company to belong to their class, it must achieve what they have already achieved, especially 5-star or higher S/Q rating.

The Business Strategy Gaming (BSG) is a rating consumer group that "rates the styling and quality of the footwear of all competitors and assigns a styling-quality or S/Q rating of 0 to 10 stars to each company's branded footwear offerings."  According to medium.com, to improve BSG rating, "it is important for each to aim for at least 20% market share in each and every segment. This is because when the business is evenly represented across the geographical regions, it will do well to the overall image of the company."