3. - SHOES INDUSTRY
- MEDIUM-HIGH SEGMENT
- 100% MADE IN ITALY
- REVENUES OF €230 MILLION
- PRESENT IN 8 EUROPEAN COUNTRIES
- STRONG BRAND REPUTATION
OVERVIEW
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5. HISTORY
1975
FOUNDATION
1990
RESTRUCTURATION
1998
UNIQUE
SHAREHOLDER
2005
BUSINESS
INTERNATIONALIZATION
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6. VISION, MISSION & VALUES
“100% MADE IN ITALY QUALITY AT AN AFFORDABLE PRICE”
“POWERING AND
VALORIZING THE
COMPANY’S REGION”
“BECAME A MULTINATIONAL ITALIAN COMPANY EXPORTING
ALL OVER THE WORLD”
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7. CORE COMPETENCIES
STRENGTHS
CORE COMPETENCIES*
Value Creation
for the Customer
Difficult
To Imitate
Access
New Markets
Brand Reputation ✓ ✓ ✓
Quality Management ✓ ✓ ✓
Production Cost Management ✓ ✓ ✓
Wide distribution Channel ✓ ✓ ✗
Fashionable Product Line ✓ ✗ ✗
* In order to be considered a core competency it must fulfill the three dimensions
RESOURCES
HUMAN
-‐ 300
SPECIALIZED
MANPOWER
ORGANIZATIONAL
-‐ ECONOMIES
OF
SCALE,
EXPERIENCE,
AND
SCOPE
-‐ NEW
LOGISTICS
CENTER
OF
12
000
MT2
FINANCIAL
-‐ EXTRA
CASH
FLOW
FROM
THE
LAST
10
YEARS
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8. OBJECTIVES
OBJECTIVE TODAY 2015
NEW FRANCHISING SHOPS 35 300
INCREASE EXPORT REVENUES 10% 35% -45%
INCREASE TOTAL REVENUES 230 MILLIONS 500 MILLIONS
NEW ABROAD FLAGSHIP SHOP 15 MILLION INVESTED 100 CHINA, 2 RUSSIA, 3 PRAGUE, 10 MOROCCO
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9. BUSINESS MODEL
VALUE PROPOSITION COSTUMER
RELATIONSHIP
MASSIVE
ADVERTISING ON
JOURNAL AND TV
DISTRIBUTION
CHANNELS
COSTUMER SEGMENTS
PARTNERS KEY ACTIVITIES
PRODUCTION
QUALITY CONTROL
PROMOTION
KEY RESOURCES
RETAILS (81%)
FRANCHISING (16%)
FLAGSHIP STORE (3%)
BRAND
FACTORY AND
ECONOMICS OF
SCALE
COMPONENT
SUPPLIER
ADVERTISING
AGENCY
RETAILER
FASHIONABLE
AND HIGH
QUALITY SHOES
AT AN
AFFORDABLE
PRICE
COST STRUCTURE REVENUE STRUCTURE
MAN – HIGH
QUALITY ORIENTED
WOMAN – HIGH
QUALITY ORIENTED
KIDS – HIGH
QUALITY ORIENTED
FACTORY AND
EMPLOYEE
PROMOTION
COMPONENT
SUPPLYED
DIRECT SALES
(3%)
FRANCHISING
SALES (16%)
RETAIL (81%)
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11. HOFSTEDE
40
91
United States Italy
62
46
29
50
76
70
75
34
Power Distance Individualism Masculinty/Femininity Uncertainty Avoidance Long-term orientation
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12. GLOBE
IT IS EASY TO MOTIVATE AMERICANS!
SOCIETY PRACTICES USA ITALY
PERFORMANCE ORIENTATION HIGH (4.49) LOW (3.58)
FUTURE ORIENTATION HIGH (4.15) LOW (3.25)
ASSERTIVENESS HIGH (4.55) HIGH (4.07)
HUMAN ORIENTATION LOW (4.17) LOW (3.63(
IT IS POSSIBLE TO BE MORE DEMANDING AND EXPECT MORE
FLEXIBILITY FROM AMERICANS!
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13. HALL
Ronen and Shenkar (1985)
USA
- LOW CONTEXT
- MONOCHROMIC
ITALY
- HIGH CONTEXT
- POLYCHROMIC
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15. DEMAND
US IS THE 2ND GREATEST CONSUMER OF SHOES IN THE WORLD
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16. DEMAND
- USD$48 BILLION INDUSTRY
- GROWING AT A RATE OF 1.8% PER
YEAR SINCE 2008
- INTERNAL CONSUMER SPENDING
EQUALS USD$20 BILLION
2012 FOOTWEAR MARKET SHARE BY TYPE OF
PRODUCT
MEN'S&
ATHLETIC&
20%&
WOMEN'S&
CASUAL&
17%&
WOMEN'S&DRESS&
13%&
OTHERS&
25%&
WOMEN'S&
ATHLETIC&
10%&
MEN'S&DRESS&
6%&
MEN'S&CASUAL&
9%&
Source: Statisticbrain
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18. SUPPLY
MANUFACTURING
USD$2BILLION
CAGR (2008-2013) = -1.4%
RETAILING
SHOE STORES (54%)
GENERAL MERCHANDISE
STORES (19%)
SPORTING GOODS STORES (7%)
NON-STORE RETAILERS (6%)
Source: IBIS world Source: StatisticBrain
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19. MAIN PLAYERS
REGARDING 2010 SALES
USD$4.8 BILLION
USD$3.3 BILLION
USD$2.27 BILLION
USD$20.86 BILLION USD$3.6 BILLION
USD$16.68 BILLION
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20. KEY SUCCESS FACTORS
ECONOMIES OF SCALE & SCOPE
ESTABLISHMENT OF BRAND NAMES
QUALITY
AUTOMATION
PLACEMENT
STYLE & INNOVATION
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22. PESTLE
POLITICALLY STABLE
LOWER TAXES
PROJECTED GDP GROWTH AT 1.7% RATE UNTIL 2015
STRONG URBANIZATION
LOWER EXPENDITURE WITH LEISURE
STRONG SYSTEMS AUTOMATION
SHORTER PRODUCT LIFECYCLE
FLEXIBLE LABOR CONTRACTS
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23. PORTER 5 FORCES
MODERATE COMPETITIVE LANDSCAPE
THREAT OF NEW
ENTRANTS
5.00
4.00
3.00
2.00
1.00
0.00
THREAT OF
SUBSTITUTES
BARGAINING
POWER OF
SUPPLIERS
RIVALRY AMONG
EXISTING FIRMS
BARGAINING
POWER OF
BUYERS
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24. COMPANY GOALS VS. US MARKET
OBJECTIVES
(2015)
US
MARKET
REVENUE
€500
MILLION
- 2ND
GREATEST
CONSUMER
IN
THE
WORLD
EXPORT
REVENUE
35%-‐45%
OF
THE
REVENUES
- VALUE
+
LOWER
TARIFFS
+
INSTITUTIONS
FRANCHISE
300
- ENTREPRENEURIAL
BEHAVIOR
+
STABLE,
SAFE
AND
CREDIBLE
COUNTRY
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25. SWOT ANALYSIS
STRENGTHS WEAKNESSES
- Brand Reputation
- Management Quality
- Cost Efficiency
- Wide distribution Channel
- Fashionable Product Line
OPPORTUNITIES THREATS
- 2nd greatest footwear consumer
- Similar Consumption cultures
- Greater demand for quality, stylish
and innovative products
- Saturated and Slow Market Growth
- Constantly Shorter Product Life Cycle
- Demand is becoming less concerned
with material goods
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27. GOALS
DECREASE MARKET EXPOSURE
DECREASE COSTS
ACQUIRE RESOURCES
STIMULATE BRAND AWARENESS
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28. GLOBAL INTEGRATION VS. LOCAL
RESPONSIVENESS
NERO GIARDINI MUST CONSERVE ITS ITALIAN ESSENCE
CULTURE
& HABITS
DESIGN
& TASTE
LANGUAGE
SIZE &
PACKAGE
TECHNICAL
SYSTEM
CLIENT &
APPLICATION
CONCEPT
PROMOTION X X X X
TECHNOLOGY X
PRODUCT X
ATTENTION: IT
DOESN’T MEAN THE
COMPANY DOESN’T
NEED TO ADAPT TO
THE CULTURAL
DIFFERENCES FOR
MANAGEMENT
PURPOSES
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29. GLOBAL INTEGRATION VS. LOCAL
RESPONSIVENESS
NERO GIARDINI MUST CONSERVE ITS ITALIAN ESSENCE
LOCAL ADAPTATION
LOW HIGH
GLOBAL
INTEGRATION
HIGH
LOW MULTI DOMESTIC
- LOCAL TEAM
- CONTROL AND MONITORING
FROM HEADQUARTERS
- PRODUCTS DEVELOPED FOR
THE LOCAL MARKET AND THEN
DIFFUSED TO US
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31. RECOMMENDATIONS
ACQUIRE THE SERVICES OF A LAW FIRM
GET IN RELATION WITH TRADE ASSOCIATIONS
SEEK FOR EXPERT AND CUSTOMER INSIGHTS IN US
FORM A LOCAL TEAM WITH A LOCAL MANAGER
LOCATE IN HIGHLY POPULATED CITIES
CLEARLY SET GOALS, AWARDS AND DEADLINES FOR THE US TEAM
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