Canada Goose Strategic Management Report
Even though it has been having competition with textile clothing industry but Canada goose has safeguarded its market by producing new products and providing its customers with discounts and offers. Introduction It was established in 1957, Canada Goose Inc. manufactures high-quality, and functional, down-filled outerwear across Canada goose is foremost when it comes to producing extreme weather outerwear, with the simple goal of freeing people from the cold, no matter where they live, so they can experience more from life. The company operates some of the most technically advanced down-filling equipment in the country, providing a large production capacity. Canada goose markets to major retail stores across Canada, the United States and Europe, as well as servicing some 300 independent accounts (both retail and industrial) throughout North America, Europe and Asia.
Employees at sub-contracted facilities are trained by Canada goose representatives on how to specially make the company’s products. In turn, Canada goose takes on the working capital of sub-contracted manufacturing facilities because seasonal businesses have increased risk, inventory issues and many sunk costs. The relationship that Canada goose has with the Canadian textile supply chain adds value to its distribution, and is stronger than its competitors due to the fact Canada goose kept production in Canada when others went overseas. Operationally, investing and building infrastructure ahead of the anticipated growth has been key to the company’s success. As for international markets, Canada goose opened a new sales office (U. Canada goose chose to stay in Canada and this competitive strategy has proven extremely successful.
And while retailers in Europe, primarily Scandinavia, immediately understood and valued the connection between an outerwear company and a made in Canada commitment, Canadian retailers took longer than other international distributors to identify with the Canada goose brand. Canada Goose’s largest competitors are Moncler(from Italy) and North Face (from the United States). Canada Goose uses a field-testing approach to measure the quality of fabric and insulation and overall performance, as well as temperature testing in technical facility in Québec, and also uses employee evaluations to critique new apparel. This approaches proven effective with the company’s move into the lightweight down category, where it redesigned its innovative Hybrid™ line of jackets, which can be used in more moderate climates and for more active pursuits External analysis The external analysis comprises of the political, economical, social and technological factors.
Most of the people in Canada spend more of their money to purchase the luxurious products and this lend to the negative impact on the selling the Canada Goose. Technological factor In the recent past the past the technology has influenced the operations of the business in the production and marketing. Goods have been able to be marketed online on the arise of the demand by the customers. In Canada most of the companies distribute their products using the technology has this has made the business to be easy and reliable because they can reach large target of the customers. The growth of the technology has a factor in Canada registered large sells of the Canada goose. Bargaining power of the suppliers The Textile clothing companies buy their raw materials from many suppliers which have lower bargaining power and this has decreased Canada goose margins in the market.
The powerful suppliers have the capacity to bargain and this can lead to high prices in the Textile Clothing and this can lower the profitability of the Textile clothing as compared to the Canada goose. The Canada Goose Holding can be able tackle the bargaining power of the suppliers by building stable chain with many suppliers, designing their products with different materials so that in case if one of the raw materials goes up can be able to shift to another easily and at the same time they can develop suppliers who are dedicated to the firm. By so doing the Canada goose Holding will have suitable environment for carrying out business. Bargaining power of the buyers In most of the market the buyers are much demanding because they want to buy the best with minimum price.
Rivalry on Existing Competitors When the rivalry among the existing competitors is high then the prices and overall profit decreases on the industry. Canada Goose Holdings has high competition over Textile Clothing industry. This industry can be able to tackle this kind of competitive rivalry by building a sustainable differentiation, collaborating with competitors to increase the market size rather than just competing for small market and by building scale so that it can compete better. By analyzing all the five competitive forces Canada Goose Holdings Inc. strategists can gain a complete picture of what impacts the profitability of the organization in Textile - Apparel Clothing industry? They can identify game changing trends early on and can swiftly respond to exploit the emerging opportunity.
Marketing & sales Canadian geese focus on telling real stories through creative channels and emphasizing grassroots marketing. The brand cannot be copied and has a considerable amount of consumers. Canada enjoys a reputation as a cold weather country, so naturally, such associations are trusted. Service Employees are mainly composed of immigrants from China, Vietnam and the Philippines. Canada goose employees have extensive training programs to ensure the production of high quality jackets. SWOT analysis SWOT analysis is a strategic planning tool that Canada Goose Holdings Inc can use to analyze the firm in different situations. This technique is very crucial because it helps the firm to present and understand its Strengths (S), Weakness (W), Opportunities (O) & Threats (T) which is facing in the present business environment and knows how to tackle them.
Canada Goose Holdings Inc. being one of the leading companies has been able to maintain its business prominent market for a very long time. This has been possible by analyzing its business using the SWOT analysis which is interactive process and embraces various coordination of various company departments which includes operations, management, strategic planning and marketing. This will limit the company because it will only offer men related products. Co-operate with both Asmuns Place and Levine’s Menswear as a market share and this will capture the men and women segments and this will target customers in all the segments. This market share matrix has limit because Asmuns had planned to move to menswear in future which may cause conflict of interest.
BCG matrix option Canada Goose Holdings Inc. has used different market matrix options including the BCG matrix option analysis which made it possible to analyze their business markets and units and mainly its products. Recommendation It is recommended that Canada Goose Holdings Inc. to co-operate with Asmuns place which will be one of the best option for the company to undertake. This will build sustainability to the market by having strong customer impression to large and broad market for the both female and male market segment. When the company accepts the offer then it means that there will be 100% markup price and less percentage expense to the Asmuns place which will lead to high profit to the company. At first, the women products will be low, but when the demands of the Canada Goose are increased then the drawback will be eliminated in the near future and the Asmuns place will increase its orders in volume.
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