Salomon company

Salomon company

Introduction

Salomon company, is a France based Company dealing with the manufacturing of shoes. The Company was established in 1947 in the city of Annecy by George Solomon, the Company is currently the leader in the production of the outdoor equipment’s in Europe and also one of the high ranked in the world. Salomon Company produces various sports equipments such as the training shoes, snowboards, and mountain climbing shoes. The Company produces different types of design boots such as the Salomon QST skis that was first produced on 2 February 2016, this product is of high quality for mountain climbing. The company have created employment opportunities to over

Salomon Company growth depends on the portion of external conditions. These terms are specified in the PESTEL analysis. The PESTEL analytical model defines external factors that present threats and opportunities in an isolated or macroeconomic environment. Taking Salomon as an example, the PESTEL analysis shows external factors that influence the company’s strategic decision making. As one of the largest companies in the global sports, Salomon should deliberate these external factors to guarantee a profit-making advantage in the industry, specifically in light of the presence of highly competitive participants like the Reebok Company and the Nice compony (Vintila et al. 2017). PESTEL analytics defines the key components that the company should develop in their strategy. To maintain its place in the sports software industry, the company must consider threats and opportunities built on external factors that regulate the conditions of the outer or macro-economic environment.

Political Factors

Political conditions such as civil war is one of the factors which influence the development of the Salomon Company. These factors undermine the organization activities such as performance of matches as scheduled levering the number of shoes sold. This section of the PESTEL analysis model addresses the impact of government in a remote or macro-economic business environment to create a contusive business environment for industrialization in a country (Rahman, 2017). The following external political factors set some of the company’s policies: Improved support from the government for better infrastructure, free trade extension policies and stable or fixed political climate in countries. To help in a smooth delivery of the organization services across the world. In most major markets, steady political positions have allowed the company to expand its business in these zones. Besides, the spread of free trade policies has helped the company to enter the foreign market more effectively and quickly. Moreover, government support for infrastructure development continues to improve, especially in developing countries, which provides the company with further opportunities to expand its business in these markets.

Economic Factors: The following external economic factors fixed some of the company’s strategies: France’s economic depression, financial situations and stability in developed markets and rapid growth in emerging markets. As the company provides its products in developed markets such as the United States, which are relatively fixed or stable and continue to grow slowly but steadily. The company also has the potential of accelerating growth by expanding its operations in rapidly developing countries. As production costs and production capacity increase in the production chain, the rapid development of new markets threatens Salomon Company as well (Stoyanova & Harizanova, 2017). Besides, the downturn in France’s economy is also at risk for the effects of the company. External Economic Factors in this portion of PESTEL analysis displays that the company must make emphasis on international expansion strategies, whereas implementing new techniques to measure economic growth in developing countries.Social FactorSocial factors are factors that affect the relationship of the company in relation to its customers, these factors need to be addressed for the better operation of the industry in terms of increasing the company’s sales. These are some of the subsequent social factors secure certain of the corporation’s plans. Developing countries increasing the wealth of individuals, this have raised the living standards of the Citizens increasing their purchasing power of the company’s products increasing the sales. Greater highlighting on the safety of the products, the company states the effect likely to be caused by their products making the customer aware of their product. Increased optimistic attitudes towards leisure, Salomon Company produces sport shoes which are more comfortable. The company has the opportunity to attract users to enhance personal well-being. In addition, the company has the opportunity to develop safe products and use marketing campaigns that focus on the safety of shoes, accessories, and clothing. The converse may also bring together new product development strategies to encounter the demand for entertainment products.         Technological FactorsTechnological factors are factors dealing with the technological status of the environment in which the organization is operating on, the following are some of the Technological factors affecting the organization performance and the tactics the organization Management have put in place: The rise in investment for research and development between the companies, this have help in solving some of the challenges the company faces. Secondly, Fast eradication of technology is helping in solving technical problems and lastly, the organization have employed the use of mobile phones and internet for advertising the organization products which improves the sales of the organization product. The increasing investments in R&D between the companies are a threat to the Salomon Company as these challenging companies try to cultivate better sport and entertainment. Rapid contracting out technology also threatens the company as it lays a burden on the company to increase its product development efforts (Stoyanova & Harizanova, 2017). However, this external element allows the company to integrate advanced technology into its products. In this regard, the company has its products for attracting customers through cellphones or online. Environmental FactorsThere are several environmental factors that affect business’s strategies and they include increase in environmental laws, climatic fluctuations and methods and procedures between the firms to increase the sustainability. Improvements in environmental regulations have formed opportunities for the company’s environment and sustainability initiatives (Robinson, 2016). The company can also use these programs to combat climate change, which affects the supply sequence and the ability of the Salomon’s Company products. The growing sustainable plans and methods threaten the business and put more pressure on flexible operations in the industry. However, this external element allows the company to improve its durability further.Legal Factors.Legal factors are the factors that influence the organization performance, these factors are always rules of the state or country in which the company operates in. Legal factors affecting the business’s plans and strategies include, up-gradation of laws regards employment in developing countries, improved laws related to consumers in emerging economies and improvement in safety and health instructions. There is a danger of reforming labor laws in developing countries, as this will increase the cost of labor in many factories of the business (Robinson, 2016). Though these external factors allow companies to enforce higher standards in terms of employment and work. Salomon Company has the chance to recover its reputation and brand image by focusing on customer gratification through the marketing of shoes, clothing, and accessories as well as its safety and health instructions. Internal Analysis

Salomon is mainly known for its stringent wardrobe and specializes in shoes and sportswear. The company has an international network for distribution and it sells its products on its own retails chains, online stores, websites, and local stores. The SWOT analysis for the company or businessThese factors need to be addressed for the smooth operation of the organization and also to drive it towards the missions.

The SWOT analysis for the company or business

Strengths

The company has several strengths in its operation. To begin with, it has an approximate of fifty branches in several countries, and this has helped the organization to raise more capital to support its activities. Also, it has successfully monitored and organize the provision of sportwear since its start; for example, the trade shows help the organization to achieve its objectives.  Another strength is that it has a sound communication system to advertise its activities, and this helps the organization to advertise its product to attract more customers to support them by purchasing their products. Salomon Company has been able to spread football throughout the whole world, making it one of the most popular sport. It has organized trade shows in different states to sell its services and products. Also, Salomon Company has a reliable brand name and capital investment for its smooth management (Robinson, 2016).  The brand name is popular among the youths as it sponsors many famous football tournaments, which have to increase the sales of the organization products. This has increased the organization’s sales, making it active economically. Salomon Company is associated with one of the world top brands like Adidas, which has firster its popularization. These brands have popularized the companies name and the services it produces. These other organizations, in collaboration with the Salomon Company, helps in the popularization of its product.

Weaknesses

The organization has drawbacks or weaknesses that has hindered its operation for instance, Salomon Company has failed to popularize itself even when the sportwear and its cloths is becoming more popular, and many do know the organization as the companies sportwear gets more popular. Also, it does not give priority to the international friendlies as expected (Raad, 2019). The organization has failed to pay attention as scheduled to the friendlies as a way of supporting their products. Another weakness is that Salomon Company has been unable to make their products such as shoes and cloths more affordable. Lack of Discrimination: Although Salomon Company has diverse names for changed groups of footwear, there are many products in their single product line and they are difficult to find. Lack of differentiation often leads to confusion among customers.

Threats

 These are the factors that can damage the business very intensely affecting the development and growth of the business. Some of the threats affecting Salmon Company includes. Imitation: Many trademarks are forged in the original version and sold at half the price, which can cause serious problems with the sale and distribution of the original brand thus damaging the reputation of the business due to copied or duplicate products being sold in the market under the name of the brand. These artificial or copied product sellers should be caught by the government or should be restricted using strict laws and regulations to reduce the risk of threats. The business should also set apart its product in a manner that can easily differentiate between the artificial or original. Rivalry: The Company faces serious threats from Nike, Puma, NB Balance, Reebok and Adidas based on sales, revenues, market shares, and market capitalization. Consumers are attracted via a variety of offers for buying the products from these competitors that result in lowering the profits for other similar businesses. However, facing the opposition and answering it appropriately through promotional activities and campaigns would result in an increased number of sales and higher amounts of profits for the business

Strategic Options

Option 1: Target Market

This helps to target different groups of ages ranging from teenagers to the professional levels of age from 21 to 36. The playing station was designed for females as well as for males with different patterns and variations for both of them (Raad, 2019). This product is also offered in a unisex range to facilitate the consumers. Marketing strategy for the chuck targets the mid, upper range, and zero range income sets. They mainly focused on an approach based on environmental analysis lies in the young compeers grounded on lifestyles that lead to the result of this strategy, primarily concentrating on the sales of the services.

Option 2: Segmentations

The Salomon Company is the leading shoe business that privileges to have developed an independent concept, and its Chucks brand enjoys this market position. According to the demographic divide, the age group is divided into three sections, 14 years, 14-20 years, 21-36 years, and over 35 years. Income is also divided into income for students and upper-middle class (Raad, 2019). In the area of ​​psychological division, Salmon Company focuses on the rise of materialism, selfishness, and conscious individuals. Salmon also recognizes people’s activity on the Internet and target groups via different social media platforms such as Facebook, Twitter, and others.

Option 3: Positioning

The brand is a registered trademark of artists, dreamers, agitators, rockers, and originals. This is a brand that reflects its personality. The brand encourages its customers and, if they are one of them, they should try to co-ordinate. It used to position itself as a sports brand, but now the brand is establishing itself as a “reincarnation of the modern subculture,” a classic game for youth (Raad, 2019). This product is establishing itself as a modern but straightforward brand. FIFA promoted Chuck’s cultural symbol status in the market and named him in honor of Chuck H. Taylor, a basketball player. This shows the product positioning strategy of the company grounded on the brand image and popular names for marketing the products or shoes.

Option 4: Marketing mix

The main advantage of this product is that the lines that have classic strokes and are suitable for any aspect. They give each owner a form of expression, free spirit, and creativity. In addition, they are easy to preserve and teenagers adore them since their low upkeep is due to the simple construction of piece and rubber. The actual advantage of the shoes is their excellent and superb quality. Insert uses two layers of salmon shoes and durable canopy socks to protect your feet. Although not designed for shaking tanks, they feel comfortable and easy to design. Other assistances consist of the ability for customers to purchase custom shoes with custom materials, letting customers design and choose the color of all shoes. In addition to all the types that the Chucks offer, there is a limited version for those who dearth special shoes. Salmons shoes uninterruptedly offers online offers to increase sales and keep customers coming to the site often.                Price and PlaceOpponents are relatively reasonable at competitive prices. On the one hand, while brands like the playing station which are of quality are sold at a moderately higher price, All-Star Salmons shoes usually cost no more than $35-60. Customers can also buy different shirts for the Reduce and Last Chance category while shopping. Companies typically offer coupons or vouchers at a store that can be obtained the next time you buy. Furthermore, to the private adaptation store, the products are distributed to leading retailers on many networks and sold to consumers (Raad, 2019). Operational brand positioning fallouts typically in better business conditions and lower sales discounts, which diminishes the cost of operations and maximizes profits. Samples are the most prominent examples of the Federation of international football associations and his playing stations. Chucks have made the company a global head in the production of screens, which can also be bought from the official website of the Federation of the international football association. Furthermore, to the private adaptation store, the products are distributed to main retailers on many networks and sold to consumers. Operational brand positioning typically fallouts in better business conditions and lower sales discounts, which diminishes the cost of operations and maximizes profits Samples are the most prominent examples of Salmons shoes Promotion In addition to price competition, Salmon Company must gain market share through ways to improve brand image and product distribution. Salmon’s image was created with widespread marketing operations and popular sponsorships. which has received many classic ads. The Converse sales growth had increased of the past years.              Recommendation: Option 4 (Marketing Mix)Despite meeting the growing needs of existing customers and regularly updating its marketing mix to enter the new market, Salmon Company has always announced a flock of trending footwear for teens and chucks at an affordable range of price. And for decades, the classic and sophisticated combinations of tempo and music made it an attraction for punk rock lovers. Color, elegance, style and “hot” are important criteria for current footwear design and the checks answer all of these questions. In addition, brands can facilitate the credentials and assessment of products and can also decrease the risks related to the purchase of new products. Knowing the brand of chuck is the link of the customer to purchase each time or on a repeated basis for the sale of shoes. These also are reasonably priced, so customers are more likely to buy them. Alteration discounts and replication proposals play an imperative part in attracting customers. Profitable documentations can force customers to buy in Converse repeatedly. Salmon has several factories in major cities across the country, providing a convenient way for customers to buy. The ability to buy on the website and the ability to buy shoes in traditional stores such as Wal-Mart also attracted attention. Salmon’s method to superstar and celebrities of every class, such as sports and music, has a positive attitude on youth. Because Salmon is a renowned brand, consumers have a tendency to buy chucks because they are influenced by influential people or control groupsConclusion The Salmon Company is an acknowledged product in the custom footwear manufacturing and it also maintains its Chucks All Star footwear as “self-inspired footwear.” The manufactured goods are rationally set a price and aimed for the fresh professionals and younger generation of scholars. Therefore, the product is one of the favorite shoes in the market. It represents the channel through change and acknowledgment networks. Overall, Salomon men shoes is a successful brand due to marketing efforts. The only shortage is of the shoes for athletes, a large market that has not yet developed but needs to be discovered.                        References

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