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Feb 20, 2024

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Strategy Formulation Flex Footwear will use a combination of competitive weapons to achieve our strategic goals as a company to stand out and compete against our competitors in the footwear industry. The competitive weapons we will use include a high level of Brand Advertising, high usage of celebrity appeal and endorsements, as well as Free Shipping on all online orders. We believe that purchasing a high amount of brand advertising will help our company sell more shoes by increasing the overall demand for both the Internet and Wholesale market. The more we advertise our brand, the more our brand of shoe will be exposed to potential customers in the regions that we operate in. An increase of our demand will result in higher pairs sold which reflects on our Total Revenue and Market Share percentage. The relative target numbers we are seeking for our Brand Advertising are around 20-25 million dollars and we will reach that over a 3–4-year period. We want to gradually increase our Brand Advertising each year to increase our demand every year to sell our shoes to as many customers in each of the regions we operate in. Having celebrity endorsements is extremely important for our brand and company to appeal to the customer. We believe in spending as much as we need to sign the celebrities that best suit our company for the regions that we operate in. Free Shipping, we believe, is an important aspect that we want to offer as a company that will differentiate us from our competition. Free shipping will mean more customers wanting to purchase our shoes online, which will drive our internet sales. We want to offer free shipping to appeal to customers and make our company their first option to purchase from. Combining high brand advertising, celebrity endorsements and appeal, and offer free shipping to our customers are our strategic goals as a company to increase demand and drive our sales exponentially. Focusing our strategy on these three competitive weapons will benefit our company due to how much they affect each other and impact the appeal and demand of our shoes. Increasing the appeal of our brand by having celebrity endorsements, paired with free shipping will increase our brand appeal. In addition, spending a high amount of money on brand advertising will increase our demand which matched with our increase in brand appeal, will greatly increase our revenue from the sale of our shoes.

I. WHOLESALE MARKET DEMAND ANALYSIS 1a. 50 55 60 65 70 75 80 85 90 95 100 2 3 4 5 6 7 8 9 10 11 Branded Market NA (Year 18) Price($) S/Q Rating FIGU RE 1.1

50 55 60 65 70 75 80 85 90 95 2 3 4 5 6 7 8 9 10 11 Branded Market NA (Year 19) Price($) S/Q Rating FI GURE 1.2 50 55 60 65 70 75 80 85 90 95 100 0 2 4 6 8 10 Branded Market NA (Year 20) Price($) S/! Rating FI GURE 1.3

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40 45 50 55 60 65 70 75 80 85 90 95 100 0 2 4 6 8 10 12 Branded Market NA(Yr 18-20) Year 18 Year 19 Year 20 Price($) S/Q Rating FIGURE 1.4 1b. After analyzing each of the four graphs we can determine that our closest competitor by year 20 is Company H. As shown in Figure 1.3, we can see that Company H has a Market Share of 9.8 while our company, Company F, has a Market Share of 10.1. In addition, Company H has a price point of $64 US Dollars compared to our company’s price point of $70 US Dollars, as well as having an S/Q Rating of 6.8, compared to our S/Q Rating of 6. We believe that given these statistics, Company H stands out as our closest competitor amongst the other 9 companies. This is because over the past 3 years, Company H has been relatively close to our company, in regards to the Wholesale Market Share, S/Q Rating, and Price.

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