Strategic And Operations Management of TOMS Company †Free Samples

Question: Discuss about the Strategic And Operations Management of TOMS Company. Answer: Sector and Industry Analysis The industry that TOMS operate is in lifestyle, which is one of the most dynamic and competitive industry. This segment is largely influenced by the changes in the trends and fashion and hence the competition is intense. This is a sector that is largely based on human resource and is impacted by the external business environment. TOMS is a multinational company based out of United States, California. As a company that manufactures shoes and accessories it has a large opportunity of expansion and growth due to the dynamics of the industry. The foundation of the company is based on a unique vision of offering every new pair of shoes to a needy child for every pair bought by a consumer. This is something that sets the company apart from the other competitors in the market[1]. Global market: Environment Analysis In order to understand the business environment and global market Pest analysis is as follows: Political: To expand the business to other countries and other markets, the company should be aware about the rules and regulations related to the industry in that particular country. The companies are expected to abide by the political guidelines laid down by the country. Economic: Factors such as inflation, changes in the exchange rate, situation or the condition the home economy impacts the business of a company. Before expanding in other countries the company should be aware of all the economic factors and analyze whether it is working on the behalf of the company. Societal: The lifestyle industry in mostly impacted by the societal environment as the fashion and the changes in the fashion trends impact the industry. The current fashion trend of a country has a direct impact on the industry and the company that is trying to expand in the particular country. Technology: The changes in the technology and the advancement of the technology in the country where the company wants to expand impacts the cost of infrastructure in terms of technology installation and maintenance. Industry Analysis To understand the industry Porters analyses are as follows: Threat of New Entrants: If an entrepreneur wants to enter the lifestyle industry he or she should be aware of the investment and competition stress and the risks that are associated. The threat to new entrants is moderate. Bargaining Power of Suppliers: This barging power of the suppliers are moderate as the switching cost of the suppliers low or negligible and as there are companies that are comparatively larger in scale in this industry, the suppliers could switch over. Bargaining Power of Buyers: The switching power of the buyer in this industry is high as they can easily move to other companies that sell shoes in the market. But they will not be associated with the CSR that the company associates with[2]. Threat from Substitute Products: The substitute of products that can be is based on the material that is used to manufacture the shoes and the accessories that are available in the industry in comparison to the ones that is sold by the company[3]. Rivalry among the existing players: the competition and rivalry among the players in the industry is high as all the company is aimed to increase their sales and grow the company Competitiveness The industry that TOMS operate in has heavy competition as the factors related to setting up the business in this sector are easily available. One of the biggest challenges that are identified in the process is the investment and capital requirement is huge. The direct competitors of TOMS are Sperry Top-Sider, UGG and CJ Clarks and some of the indirect competitors of TOMS are Nordstrom, Zappos and Macys etc. Industry Segmentation According to the divisions of the market, the company simplifies the goals in order to make the objective more achievable in the long run. Demographic: The age of the people who are targeted by the company as a potential consumer is in between 20-45. In terms of gender, the company manufactures design of shoes both for men and women. There is also a separate segment for the kids as well available. Behavioral: the company offers designs that are not only trendy but are also comfortable. The products are priced moderately hence the people who have a knack for fashionable yet comfortable items can be a potential customer for the company. Some of the popular products are the boots and the casual shoes[4]. Psychographic: The target segment of the market are people who like to use branded products and people who are inclined towards the fashion and do not mind spending on an extra pair of shoes. Geographic: The Company is available on several online platforms all over the world[5]. Industry Rivalry Aforementioned the competition in the industry is intense and the entry of new entrants are also moderate hence the rivalry in the industry is high. Though the driving force of the company is different and the CSR aspect of the company has garnered TOMS a good position in the market. Exogenous and Endogenous Barriers Exogenous: Trade policies of a country and the rules and regulations related to the lifestyle industry in the country is a major barrier for the business. Endogenous: The intense competition and the large capital involved in running the business are identified as one of the barriers to business[6]. Relevant External and Internal Issues External: One of the major external issues that the company can face is the fluctuation of the inflation rate as it directly affects the cost of product and distribution. Another external issue that is faced by the company is the competition with generic brands and duplicate products. As the company operates in the international market the company is open to duplication of products which lead to a major setback for the cause the company has been set up[7]. Internal: The resource allocation effectiveness is one of the major issues that are faced by the company. Several operational methods like kaizen and Six Sigma can be incorporated to recover this problem[8]. References: ?iarnien?, Ramun?, and Milita VienaÃ… ¾indien?. "Management of contemporary fashion industry: characteristics and challenges."Procedia-Social and Behavioral Sciences156 (2014): 63-68. Grant, Robert M.Contemporary Strategy Analysis Text Only. John Wiley Sons, 2016. Kozlowski, Anika, Cory Searcy, and Michal Bardecki. "Corporate sustainability reporting in the apparel industry: an analysis of indicators disclosed."International Journal of Productivity andPerformance Management 64.3 (2015): 377-397. Szenberg, Michael, John W. Lombardi, and Eric Y. Lee.Welfare effects of trade restrictions: A case study of the US footwear industry. Academic Press, 2014. Tonnon, Susanne C., et al. "A qualitative study of the anticipated barriers and facilitators to the implementation of a lifestyle intervention in the dutch construction industry."BMC public health14.1 (2014): 1317. Ulutas, Berna, and A. Attila Islier. "Dynamic facility layout problem in footwear industry."Journal of Manufacturing Systems36 (2015): 55-61. Vitalari, Nicholas P. "Prospects for the future of the us healthcare industry: a speculative analysis."Am J Med Res3.2 (2016): 7-52. Yang, Shuai, Yiping Song, and Siliang Tong. "Sustainable retailing in the fashion industry: A systematic literature review."Sustainability9.7 (2017): 1266.