External Analysis-Columbia - University of San Diego Home
Download
Report
Transcript External Analysis-Columbia - University of San Diego Home
Alexa Strobridge
Zach Lewis
Lexi Fascenelli
Qi Chen
Frank Li
CULTURE
Cultural trends
play a major role in
the consumer
appeal of this
industry.
There is a high
seasonal influence on
consumer buying.
SEASONS
Summer products
typically cost less than
winter products
Sales during offseason
offsets sales revenue
Capital
Innovation
Competition
Substitute Prices
• Customers might be attracted to the lower cost of products from
outside the industry
Substitutes performance and quality
• Performance expectations cannot be met by the industries outside of
our own.
No switching costs
• There are few switching costs for the customer, thus making it easy to
substitute the product.
• http://www.youtube.com/watch?v=r3QXAqgddZc
Each of the major brands in this industry
have their own unique fabric blends. They
each offer similar features while using
different technologies.
Columbia: Omni-Dry, Omni-Heat etc.
Northface: HyVent, GORE-TEX
Patagonia: Synchilla, Capilene, Regulator
REI: ecoSensitive materials
Outdoor
Sportswear Companies are the
dominant customers of these suppliers
These
supplies give these companies
competitive advantage over each other.
Their
name brand is associated strictly
with the suppliers of these materials.
Two segments:
Baby Boomers (born 1946-1964)
78 million
“mastering a kick-flip at the skate park is as satisfying to
a millennial as summiting mount rainier might be
(or have been) to a Boomer.”
— Beaver Theodosakis prana
Millennials (born 1978-2003)
100 million
“our challenge is to meet them where they
are; after all, it’s the participant who will
define us, not the other way around.”
— Angel Martinez deckers outdoor corporation
most often seen:
hiking, biking, camping, fishing and paddling –
the Industry’s pillar activities.
There
are a few major rivalries within the
outdoor apparel industry
• Columbia
• Patagonia
• REI
• North Face
Outdoor
sportswear industry is
becoming more expensive
• Supported by buying habits of millennials and
boomers
Lower
price points
• Price range for Columbia jacket is $100-250
• Price range for North face jacket is $250-500
Resource
similarity
• The industry uses the same resources as any
other clothing industry
Same fabrics and materials
Similar research and development
Market
Commonality
• There is much market commonality within the
industry and outside the industry
They
all have very high FIXED costs
Sourcing, merchandising, distribution, and
administrative functions
• Must have high sales to return a profit
STORAGE
costs are reducing
• Clothes are manufactured as the newest style
and pushes old ones out
• Brick & Mortar Click & Mortar
Outdoor clothing as an industry has a
great deal of differentiation
If you participate in outdoor sporting activities, for
most people it is considered a commodity
Example: You would not choose to go snowboarding in a pair of
jeans and sweater
The Outdoor sportswear industry has very
low exit barriers
• Limited specialized assets
• No strategic interrelationships
• Lack of government and social restrictions
The few barriers
• Some fixed costs of barriers
• Emotional barriers
Statistics
show that Gen Y and Z have
greater living and fashion standards then
previous generations (millennials)
• Outdoor clothing is already comfortable and
becoming more fashionable to attract consumers
8.3
billion Americans:
(Baby Boomers and Millennials)
Online
81%
shopping sales start to take off
of retailers reported revenue ^ UP
compared to 5 years ago
- with an average growth of 32%
High Barriers to Entry
Few Substitutes
Growing Market
High Revenues, High Fixed Costs
Shared Resources
High Competitive Rivalry
Strong Buyer Power