Cheddar’s had always been profitable through that it had ever closed a company-owned store and had shown steady increases in sales and customer counts over time. Also it has a source of income from its franchise stores which could grow at a faster rate. Cheddars’ estimated EBITDA was $12.0 million in 2003 and it had a projected EBITDA of $18.9 million in 2007. Cheddar’s also had an average EBITDAR of $1,027k which was much higher than its competitor Chili’s which was $723k. At the purchase price of $60.5 million, we can also confirm that the Market Value/EBITDA (5.4) of Cheddars’ is higher than its competitor’s (2.6) when we compare multiple ratios, which means Cheddar’s is overvalued.
So where did the other sales go if its full-line stores’ sales dropped? Well part of it is due to an increase in sales in its Rack stores due to the increase in amount of customers bargaining for prices due to post-recession behavior. But most of it is due to its 30% online sales jump which enabled Nordstrom’s total revenue to increase in the year of 2013. Unlike some of its counterparts, Nordstrom adapted to new shopping behaviors. Online shopping is definitely the newest and boldest trend for retailers.
In 2011, Collective Brand, Inc. revenue was $3.4 billion. Payless Shoesource, Inc. sell variety of men, women, and children shoes. Although, shoes are the main product of the company, Payless also sell handbags, socks, hosiery, and accessories (jewelry, scarves, etc.). Payless is also known for the slogan BOGO, which means Buy One Get One. Buy one shoe at regular price, and get the other shoe at equal or lesser value free.
New Balance also suffers from higher production costs compared to their main competitors who outsource for all their labor. Opportunities: The emergence of online commerce s represents a great opportunity for New Balance. According to the Internet World States, on June 30th 2012 the internet use the world population stood at 34.3 percent with a growth rate of more than 566.4 percent during 2000-2012 (Internet World Stats 2012, p. 1). With the growing number of international online users New Balance could greatly benefit from selling direct to consumers through various online channels. The growth in the shoe market also represents another opportunity for New Balance.
Cottle wants to expand to new product development but the Indian culture has not fully adapted to the use of low-end and mid-range toothbrushes. They live on less than $2 a day and have low discretionary spending. The population in India has grown but so has poverty. This has made it harder for Cottle to emphasis the need for the toothbrush because they refer back to inexpensive homemade brushes. The Indian culture does not associate health issues with not brushing teeth.
Shoes, athletic (except rubber or plastics soled with fabric upper), manufacturing. Vinyl upper athletic footwear manufacturing. Friday, February 24, 2012 2 Major Economic Characteristics of the Industry • Billion dollar industry • This market is beginning to decline somewhat, however experts expect there could still be some small bursts of growth occasionally. • Characterized by having a small number of large players. Friday, February 24, 2012 3 Industry Driving Forces • Fashion trends (+) • Change in society (healthy lifestyle) (+) • Changes in consumer sports preferences (sport popularity) (++) • Changes (rise) in manufacturing costs (--) Friday, February 24, 2012 4 5 Forces Model Substitute Products (of firms in other industries) M Suppliers of Key Inputs M Rivalry Among Competing Sellers Buyers S W Potential New Entrants Friday, February 24, 2012 5 W 5 Forces Model: Rivalry STRONG • Strong because industry is shrinking in the U.S. •
Old Spice The power of advertising has never had a reach so far as it has over the last decade. Billions of dollars every year are thrown the ways of writers and directors to create an appeal to audiences everywhere in hopes consumers will purchase their product and stay on board for repeat business. This is especially critical for companies such as Proctor and Gamble to do with older brands such as Old Spice. Having been around for over seventy years, Old Spice was in need of a campaign that would not only appeal to the purchasing audience, but also to revamp the image of such a staple in the hygiene industry. The advertising drive of 2010 featured the hit slogan “The man your man could smell like” (OldSpice, 2010).
(2) Their lead time lasts only a few weeks thanks to their rapid production capabilities and this is a key differentiator compared to other apparel retailers. Designers are highly productive and they come up with almost 24. 000 new product each year, but only one third of it is produced. Zara represents three to four times more products than traditional retailer. (3) Zara spends little money on advertising, for instance their advertising costs are equivalent to 10% of competitors’ expenditure.
Xiaomeng Guo Assignment 1-2: Amazon.com: The Brink of Bankruptcy Abstract Amazon.com is one of the biggest international online-shopping Companies and the most familiar shopping website for every American. No matter if customers want to buy something or sell something, Amazon.com always is a good place for them. I still remember in 2010 I had an opportunity to interview with a Target manager. I asked him, "What is Target’s biggest competitor?" The manager said, "Amazon.com is our biggest competitor."
In 2007, combined sales rose 9 percent to just under 2.1bn. Sales in Europe attain an 87 percent, while in the Americas only around 2 percent (WARC, 2008). 2. Executive Summary The Benetton group is Italys biggest clothing manufacturer, established in 1965 by the Benetton family, with presence in over 120 countries and a 5,500 store network, Benetton ins one of the major players in the clothing industry worldwide, however they have not been able to transfer this success to the U.S. market. The U.S. clothing market is an interesting opportunity for Benetton; with a value of $254 usd billion in 2006 (Euromonitor, 2007) is one of the largest worldwide.