Holey Soles Essay

This case analysis allow focus on the issues surround the life-style return club poriferous Soles. Psychologist Ann Rosenberg founded the caller-out in September 2002. She initially operated in her garage and backyard, until she recruited Joyce Groote (now current CEO of poriferous Soles) and expanded the company into other(a) move of North America. poriferous Soles focuses on creating innovative footwear made from their trademarked technology SmartCel and SoleTek, which is an injection-molded foam technology.As of July 2007, sales had grown at 300% in each of the travel two years and the company was ranked calculate four in the 2006 Profit magazine ranking of Canadas Emerging Growth Companies. and as they continue to operate, they find themselves getting pushed back by their number one competitor, Crocs. By mid-2007, Crocs sales were 33 metres the sales of Holey Soles. Holey Soles has a revenue target of $40 million by 2009, and to achieve this target, they will need to focus on the issues surrounding their company and hindering its growth. We guide decided that the core issue surround the company is how to clear the destruction of $40 million.They need to address the possible alternatives of all expanding into other products besides footwear, implementing a much aggressive marketing strategy, changing their 2-year goals completely, or maintaining the status quo. These alternatives will depend on the assessment of the period frame, cost, and current and dominance competition. Upon analyzing all situations and alternatives, we have decided that the best resolvent for Holey Soles would be to expand the company by creating other product lines made form their trademarked technology. Only through this method will they be able to generate enough revenue to meet their $40 million goal.Issues The issues surrounding Holey Soles include the inability to have a high market share due to dominance from Crocs, how to reach the goal of $40 million revenu e, and deciding upon elaboration. We think the core issue is how to reach the goal of $40 million. Decision Criteria1.Time frame of implementation They only have 2 years to make reach their intended goal of $40 million. Considering the high target number, 2 years is a very con time frame, and therefore is an important decision criterion. Sourcing from China to other parts of the world also takes a long time, so it factors in how untold product can actually be made in the time frame given. 2.Cost of expansion To reach a goal of $40 million, an expansion of the company would have to take place. This poses the problem of where capital is going to surface from. 3.Current competition Their number one competitor is Crocs. During the 2-year period to reach a goal of $40 million, Crocs will still be sell at the rate they have been, and may also be working towards goals of expansion. 4.Threat of potential competition In the 2 year time frame given, whats to say that new competitors will not enter the market? As the clog fad continues, more companies are producing similar products as Holey Soles. Even though most of them aside from Crocs have a poorer goal with lower quality materials, the possibility of a company suddenly ledger entry with a whole new technology is always possible.Alternatives & Assessments1.Expand by increase a more diverse range of products sold. By relying on selling the clogs alone, they will never be able to reach their goal of $40 million, nor be able to overtake Crocs since Crocs has taken so much more of the market share already. With their trademarked foam-injection technologies SmartCel and SoleTek, they should put those towards creating newer and more innovative lifestyle products aside from footwear. They already started with the beach bag, so it proves that it is possible to create other products. They already have an advantage due to their company being be as products that are lifestyle centered, rather than simply a footwear manuf acturer.