Foot Locker Case Study Summary

1164 Words 5 Pages
An additional cause for the decline is due to the lack of variety or expansion across the stores, as well as the joint-venture relationship with those suppliers who are also competitors to the company. The corporate level strategy that Foot Locker utilizes has allowed the firm to grow through related diversification and sell several athletic wear brands within the industry. While the product offering is differentiated in terms of variety and price, items across the brands are limited as each store within the corporate chain carries the same styles in shoes. For example, shoes and apparel found in Kids Foot Locker or Lady Foot Locker stores are the same items that can be found in Footaction and Champs stores. The firm had a major loss after …show more content…
can make several changes and improvements within the company’s operations and strategies. First, the firm needs to control the suppliers’ bargaining power. By evaluating which brands provide the greatest returns and which costs too much to the firm to continue carrying, the company will be able to better control the suppliers and their effect on the company’s success. By creating more in-house operations and eliminating the cost from suppliers that are not selling well, the firm can potentially increase profits. Eliminating these costs also allows Foot Locker to take control over the suppliers’ power and reduce the risk of the suppliers jeopardizing operations by both competing and supplying products to the firm. Also, as the online athletic wear market is growing substantially, the firm needs a vivid online presence to attract new and returning consumers and to keep up with the other online platforms. This online presence would need innovation and a strong marketing strategy. Additionally, the firm can focus on a low-cost aspect of their business-level strategy as “in commodity markets, competitive advantage goes to the company that has the lowest costs,” (Hill pg149). This would help to set themselves apart from other high-end firms and those firms who have merged or acquired other brands. Possibly, the firm may be able to sell their products to consumers at a lower price by having a low-cost …show more content…
The most important way for Foot Locker to handle this issue is to be a price leader within the industry. If the firm is willing and able to sell products across the company at lower prices, as previously mentioned, consumers will purchase more from the retailer. Also by offering the shoes at lower prices, consumers will have less desire to purchase substitute options. During economic hardships, the firm needs to be able to adjust prices as well to ensure that consumers are still willing and able to purchase their products. With new retailers and local stores opening within the industry, Foot Locker has the opportunity to invest in joint-ventures, alliances, and even acquire new firms that enter the market to grow additional market share. “The global sports and apparel industry is highly fragmented, with many brands competing,” (Statista 2017). As Foot Locker, Inc. is already established with various retail locations , the firm has an advantage in the marketplace to partner with a new entrants to the market, thus reducing the risk of new entrants taking Foot Locker Inc.’s market share and providing an opportunity for

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