Socioeconomic Systems in Northern Great Lakes, Research Paper Example

Boda Skins

How can Boda Skins maximise online sales on the key shopping days in South Korea?

PESTLE

Boda Skins is a Apparel and Fashion company dealing in Premium leather jackets in South Korea

Political situation

Boda Skins is able to venture in international markets including USA, Germany, Australia, UK, Scandinavia and currently focusing on Japan.

Economic factors

The distribution chaneel at Boda Skins incorporates Netherlands and Sweden distributorsand over fifty stores based internationally. Boda Skins is also making major strides in widening the scope of their wholesale distribution butthe focus of their strategy is more on the ultimate consumer. The company is therefore impressed by online shoppers through bodaskins.com  in conjuction with FedEx Express for delivery.

Importance of culture in the market and its determinants

Cultural diversity is clearly evident in Boda Skins with men as well as women of between 24 to 35 years forming an important segment of the market. The clients of Boda Skins are particularly active  in social media as well as being sensitive to fashion. Majority of people are in to biking.

Technological innovations that affect the market structure at Boda Skins

Boda Skins uses the internet through website as one of their selling strategies. The contribution of information technology has facilitated Boda Skins to sell their key jackets at £389. The website allows the customers to place an order with a lead time of 2 days.

Current legislations that regulate the industry

Boda Skins strictly follows the laws governing business in addition to internal policies that are maintained in the company

Environmental concerns

Boda Skins also responds to environmental concersns such as weather and climate. The premium leather jackets produced at Boda Skins are not particularly affected by variations in climate like other fashion companies. However, Boda Skins usually adds new products at specific times of the year (Porter  & Heppelmann, 2014)

5-Forces

Boda Skins also makes use of the Five Forces of Porter model in identifying the points of power in the company.

Supplier Power

Boda Skins maintains a strong relationship with their supplier who deliver the stock within 14 days after an order is placed. Boda Skins hold substantial stock in Manchester to avoid manipulation of prices from the supplier.

Buyer Power

Marketing at Boda Skins is done in house and many fashion influencers assist the company in sales. Boda Skins is also present in social media and instagram that highly promotes sales. The company also makes use of PR agency in LA as marketing partner. Introduction of a working relationship with celebrities is also an important consideration for the company. Using these strategies, Boda Skins has been able to limit the powers of buyers in dictating the prices (Janet et. al. 2010.

Competitive Rivalry

Boda Skins has achieved a target of 65% and 35% of mens’ and womens’ jackets respectively. This is an indication that Boda Skins has offered attractive products that outdo theirn competitors. Boda Skins has therefore gained tremedoous strength over competitors in terms of customers and suppliers.

Threat of Substitution

Boda Skins offers premium leather jackets that are not comparable with an identical product from any other company. The Premium leather jackets are marketed through a website and therefore the clients have a lot of loyalty to the products of the company. The possibility of substitution is therefore minimum.

Threat of New Entry

Other companies dealing in fashion have no restrictions of entering this market. However, the technology behind the production of Premium leather jackets Boda Skins gives it an edge over competitors and therefore the threat associated with new entrants is not significant for Boda Skins

Porter’s Generic Strategies

The relative position of Boda Skins in this industry is an important determinant of the profitability of the firm below or above the anticipated average in this industry. The elemental basis to achieve long run above average profitability involves maintaining a  sustainable competitive advantage. Achieving this needs adoption of three generic strategies that include cost leadership, differentiation and the focus.

Cost Leadership

Boda Skins has strived to be the lowest cost producer in fashion industry compared with other business. The strategies of achieving cost leadership at Boda Skins is achieved through economies of scale, the use of proprietary technology, easy access to raw materials and online marketing to reduce the cost associated with retail stores.

Differentiation

Boda Skins has strived to achieve uniqueness of their product in the fashion industry. The premium leather jackets produced at Boda Skins are not particularly affected by variations in climate like other fashion companies thus attracting the positive attitudes and satisfaction of buyers to the product. The uniqueness premium leather jackets offered by  Boda Skins is rewarded with premium price in the market (Kiechel, 2010).

Focus

Boda Skins is keen on their choice of a narrow scope of competition. The promotion done at Boda Skins involves the use of bands as well as singers featuring in music videos thus targeting the young generation who have great potentials as buyers.

Recommendation

Boda Skins has therefore the opportunity of manipulating the elements PESTLE model, Porters 5-Forces and Porter’s Generic Strategies as discussed above to control the operating environment in order to achieve a sustainable competitive advantage

References

Janet G. et. al. 2010. “Adaptive Strategies and Socioeconomic Systems in Northern Great Lakes Riverine Environments: The Late Woodland of Michigan” in Late Woodland Societies: Tradition and Transformation Across the Midcontinent. Lincoln : Univ. Nebraska Press,

Kiechel, W., (2010). The Lords of Strategy. Harvard Business Press

Porter, M.E. & Heppelmann, J.E. (2014) “How Smart, Connected Products are Transforming Competition”, Harvard Business Review,  pp 65–88.

Porter, Michael E., “Competitive Advantage”. 1985, Ch. 1, pp 11-15. The Free Press. New York.