Summary of Industry Analysis Vera Bradley Company EXTERNAL ANALYSIS Industry Analysis 1. Industry Economic Features— Market Size: $503.0 - $509.5 million annual revenues; $54,938 thousand total merchandise. 2. Industry Competitive Forces— 1. Competitive rivalry: National brands such as; Fossil, Chanel, Guess, and Marc Jacobs hand bag manufactures. Largest markets are United States 36% of sales, Europe 21%, Japan 16% in China 11% of industrial sales. 2. Market growth rate: 2016 United States growth -1.26% Market has matured and due to competitive handbag markets this industry has stalled. Globally market is not yet saturated, expansion is still possible. Growing demand in China and other emerging Asian markets such as India rapidly increasing …show more content…
wealth levels. Sales in these markets are expected to increase 7.8% annually. 3. Industry KSF’s— 1. Creative design -allows for differential of products. 2. Innovation- competitive advantage against other manufacturers. 3. high quality for best price - customers paying premium prices expect their products to be free of flaws. 4. Brand reputation- increase brand awareness and brand loyalty. 5. Globalization- critical to increase market share and cost control. Competitive Analysis 4. Nature of Competition—Market growth is highly dependent on the economic situation. Many brands are offering different types of lines of the brands catering to the middle class. The goal is to keep costs down and the quality of product high. The company must ensure that they can compete with other competitive forces brands and ensure no counterfeit products are produced. 5. Rivals—What market positions do rivals occupy? Luxury handbags and accessories. 6. Rivals’ Next Moves—Globalization as well he is driving forces for this type of industry due to raising demand in the Asia-Pacific region. 7. External Analysis Summary—This industry is attractive competing with a number of luxury handbags and accessories. Companies to focus on the Asia-Pacific region markets. There is a very high barrier to entry in this industry. Key success factors a company needs to survive the industry and creative design be innovative and have high quality product for the best price. INTERNAL ANALYSIS 8. Current Strategy—Company’s strategy is not working to well. Company strategy involves offering distinctive line of colorful women’s luggage, handbags and accessories. Sales is done through department stores and over the Internet. The company’s vision and mission is not clear. The company would like to open 300 full-time retail stores and 100 factory outlet stores. The goal is to sell approximately 40% of product sold in the factory outlet stores. 9. SWOT & Financial Analysis— 1. Strengths - good quality, stylish product line (patent design), infrastructure, low debt to expand and product development, create new site location, strong coverage ratio. 2.
Weaknesses - company focuses on Japan and US, no globalization goal, slow growth revenue, weak brand image, too many distribution channels, brand is not distributed through luxury department stores. 3. Opportunities- expand distribution channels, customize products from traditional patterns to culture patterns to meet local demand, improve product demand, product line for career driven women, focus more resources on online sales which is continuing to grow on average of 28% per year. 4. Threats- less disposable income during recession, expose Asian markets and competition with other brands. 5. Financial analysis -net revenue grew in 2013 and declined 2014 to 2015. Net revenue declined approximately 15% in 2015. The main reason causing this decline is the increase in fixed assets over one year, meaning, the company’s assets were just sitting idle. After ROA declined in 2015 (company is not profitable) it does appear that it is increasing by 4% in 2016 due to rebranding of products. 10. Cost Control and Pricing— Overall company is not competitive other than price of the products. Michael Kors products has the highest sales among all the brands. Vera Bradley is doing majority businesses in North America, Europe and
Japan. 11. Competitiveness—Company’s competitive position is weak. The company needs a viable brand reputation/awareness. 12. Summary of External and Internal Analyses—Strategic issues does the company face is branding reputation. Consumers need to know the brand and it does not matter at that point the quality of the product. Once a consumer buys a product second objective is the creative design and quality. Overall the company is at a competitive disadvantage as it is behind almost all factors which includes creative design, innovation, quality product, best pricing, brand reputation, brand awareness, and globalization. Michael Kors products have the highest sales and is the strongest competition for Vera Bradley. STRATEGIC ISSUES In general Vera Bradley must open more stores focusing on the Asian markets. Also Vera Bradley must create new designs for their handbags and accessories. Strategy issues would be the competition. Vera Bradley must market their product based on need of the client and price accordingly to the competition. POTENTIAL OPTIONS Vera Bradley product lines need to attract new customers. New strategy must be developed to sell current product line to other countries. RECOMMENDATIONS Vera Bradley more affordable handbags and accessories would be classified as a luxury items. And because of this they are competing with numerous strong presence in that market. Historically Vera Bradley has had trouble competing with those competitors. Just look at Coach Corporation their handbags and accessories 2013 losing purchase demand for American women. Coach brand strategy was to expand their style to other countries outside the United States. Coach products have seen an increase in demand due to their strategy. Vera Bradley must look at other markets in this world. Based on data North American market is saturated with these type of items. Vera Bradley look at a different market and expand globally. RIVALS’ ANTICIPATED REACTIONS Retail segments handbags, leather goods and accessories competition is fierce. Firms have limited pricing power but since generally products are above average in price the competition can lower prices on their products to be a more affordable which creates a demand. CONTINGINCY PLAN Recommended Vera Bradley as a contingency plan. Bake towards cheap products to make it more affordable to newer customers. The loss of brand value may outweigh any sales benefit. Reference: Lutz, A. (2013, Jan 23). Coach Has Never Faced Competition Like This Before. Business Insider. Retrieved from http://www.businessinsider.com
From 2010 to 2011 there has been a 23.8% increase in gross fixed assets value. The raised funds through long term debts would have been used to enhance assets base of Speedster. This is a very positive sigh of future profitability and capacity of the company. Higher assets should be able to generate more cash inflow...
can expand through marketing ideas and ways the company can save money by not stocking up on as
• An analysis of Caterpillar’s 2015 Income Statement revealed a 15.3% decrease in sales on machinery, energy, and transportation between 2014 and 2015. While the company experienced a nearly negligible change (-1.05%) in operational revenues from 2013 to 2014, they experienced a very severe decline between 2014 and 2015. Operational revenues dropped from $52,142 million to $44,147 million, showing a deterioration from previous years.
The industry market size in the US is estimated at $303 billion in fiscal 2014, $221 billion attributed to consumer market (private home owners) and the remaining to the professional market
The first analysis will be on Verizon. The current ratio and the debt to equity ratio both improved in 2006 when compared to 2005. However, the net profit margin dropped from 9.8% to 7.0%. What does this tell us as investors...
o Shoes and clothing - $125 billion. o Electronics and appliances - $85 billion. o
More new products need to be introduced and research needs to be done to find out which products will be most popular and profitable.
Strengths: low price, strong brand name, excellent merchandise, exceptional employees, huge membership base, economies of scale, efficient distribution and operation.
Weaknesses: Most of the revenues of the company were generated outside the Israel from Europe and CIS countries, which could subject the company to macro-economic instabilities. Opportunities: Teva had to compete with four big pharmaceutical firms so global consolidation could strengthen its position.
Other competitive activities included sales promotion, advertising, and product differentiation. Larger companies have a much greater financial ability to be able to invest more into advertising than a new business starting out would be able to. Shelf space and competitive pricing were two major issues that affected sales. Because they are already recognizable brands, they can afford to purchase the best shelf space. Consumers will see their products before noticing other, not so well known products.
Competitors. Rosewood is competing with corporate branded properties and individually branded properties. Main competitors are:
Our largest opportunity for growth lies in the emerging economies of China, India, and Thailand. A modest growth in stores in the US, and Europe (2%), while increasing efforts to expand by 10% a year in China, Thailand, and India while offering new menu items in the stores we currently have in place is projected to increase our revenues from $14.9 billion per year to $26.46 billion per year over the next 4 years. This plan will increase our indirect labor force, by adding select marketing teams, commodity managers, and a VP of construction.
1) As companies trying to sell consumers stuff, they are not competing with them, only other companies,
Increasing demand for peanut butter and our product lines. For example, last year there was an increase in the demand of peanuts from China.
There is also a need of expansion in other segments such as children and men, size plus, sports items, maternity and more mature people segments. Although, they also offer these segments but we think, strengthening them can bring sale increase opportunity as today for example there are more women engaging in sport , so supplying large range of working outs items at low price would be profitable for the