Essay Volcom Strategic Audit
Steven L. Roop
Dennis P. Sable
Volcom is a manufacturer of Boardsport related clothing and accessories. Based in Velcro Valley – south of Los Angeles – the company’s core values speak volumes about their marketing and sales goals and objectives. The Volcom philosophy, stated as, “youth against establishment”, implies that their aim is, at the very least, different from normal capitalist “Free Trade” established ways and means, and their history highlights the differences. The new Volcom “New Future” initiative is an example of their sales and marketing direction. As Derek Sabori, Volcom's senior director of the department of sustainability and …show more content…
In 2005 Volcom acquired the distributor of Volcom products in Switzerland – Welcom Distribution SARL.
In 2007 Volcom constructed a wholly-owned subsidiary in Anglet, France to handle the European market.
The only down side to the whole Volcom venture is declining ROI (down by about 25% since 2005). But much of this can be blamed on poor financial conditions and their effect on an “elite” brand.
The Volcom brand was born of the boardsport mentality with a float of higher education in business and parental business highlights. This means that, while profit is important because it is necessary, the lifestyle (“I know when the low tide is and I am going surfing”) is the basis for its existence. Perpetuating the lifestyle – some would even say, “defining” the lifestyle – is what Volcom is all about.
Volcom expects to increase revenue steadily but slowly. It does not see profit as an objective, but as the fruit of this objective. The Volcom viewpoint is that if you do things properly, the profits will come as a result of these actions. The focus is the lifestyle
Along with continuing the lifestyle, Volcom wishes to complete, and even add to the boardsport lifestyle through its audio and video arms. With its audio and video presence, Volcom will portray what is happening within the boardsport culture, and will motivate that culture to remain what it is