Foot Locker Inc. Foot Locker Inc. operates around the globe with its headquarters in Manhattan, New York with its operations in approximate 3500 stores that also comprises of seventy-four franchised stores. The company’s operations take two segments that focus on apparel retailer and athletic retailer that ensures the provision of athletic clothes, shoes as well as other instruments across the various markets. To ensure consistency in the market and availability of its products to customers upon demand, the company runs different points and websites. The initial operations of the business started as Woolworth in 1963 as a specializing on special shoes among various operating subsidiaries.
The fall of Woolworth departmental stores both in the 1980’s and 1990’s lead to a decision of changing the focus to the provision of athletic shoes only (Grant 2010). Acquisition of the largest storefront referred to as Eastbay provided a turning point for the company leading in athletic shoes sales across the United States. During the year 2001, the Foot Locker brand significance became the line that outperformed the other branches leading to Woolworth changing to Foot Locker Inc.
consistent market campaigns and strategies ensured the company performed strongly against major competitors and on 0november 2004, the organizations quarterly profits increased to 19% as a result of increased sales. Subsequent acquisitions of Footaction in 2004 expanded the company’s operations with the extra 350 stores that provided market in urban areas where customers need for the organization’s products remains high. The growth within the company in the recent years remained consistent with the company engaging in corporate social responsibilities that marketed the brand in various localities (Oslen Et Al 2011).
For example, its joining with schoolPAX in 2005 remains an important program in ensuring the company adheres to its policy of giving back to the society while in the process raising sales proceeds. The company donates to the schools after the schools sign up and shop at the developed key tag or what is referred to as school code. Sponsorship of renowned sports person also remains a primary focus of the company to ensure effective marketing of the brand. The Company has also joined the “Do Something” program in support of high school athletes in support of their spirit in athletics as well as academic excellence.
Through the acquisition of German Retailer’s Group that had established already existing markets in Germany and Europe remains the latest acquisition of Foot Locker in 2013. The company’s direction continues to achieve steady growth and continues to be one of the major players in the New York stock market. Much of the growth achieved throughout the years of operations and mostly in recent years remains as a result of changes in strategic plans that ensure the company remains in line with the market demands.
Upon the business’s inception before changing the name to Foot Locker, the operations and setting of the organization differed with current contexts. The change of strategy remains significant as different organizational setup may fail to achieve success with the initial plans. The most recent change of policy by Foot Locker Company relates back to March 6 2012 that will ensure the company remains in line with its long-term financial objectives until 2016. Prior to the announcement of changes in the strategic plan that took place in 2012; the company had done the same within a span of two years back (Maurer 2012).
The strategic plan and long term goals change in 2010 led to the elevation of the organization’s financial as well as operational performance leading to strong results in 2011. The Board leader Mr. Hicks acknowledged the importance of these changes since dependable results are evidenced all through the current progress within the company operations. Despite the plan focusing on five years, the chairman emphasized the need for emphasizing on the right direction to stay in line with the organization’s mission.
The change as a result resulted from the achievement of the set financial goals and identification of new opportunities that the company believes remain essential in attaining a competitive advantage over competitors, providing the best for the customers and achieving sustainability. The current specific strategic priorities for Foot Locker relates fundamentally to creation of an apparent customer driven performance throughout the organization’s main athletic banners. Secondly, ensure achievement of exceptional growth across high-potential segments of business operations (Maurer 2012).
Thirdly, focus on providing exciting websites and stores to ensure customers find them relevant while purchasing. Fourthly, focus on means that will provide brand expansion opportunities gets full utilization. Achievement and significant success within every organization result from the company’s adequate evaluation of the SWOT analysis. For Foot Locker Inc, the strengths include that the company enjoys high liquidity position plus growth of both revenues as well as the products of offer. These two attributes remain the significant reasons for current growth and success within the organizations. Other strengths include a variety of products enjoyed by the company and an increase in profitability index (Oslen Et Al 2011).
Opportunities include increasing productivity levels, online shopping growth and expanding on the international front. Focusing on ways to increase the demand for female products in offer also remains a significant opportunity. The primary weaknesses results from over-relying on Nike for its supplies and limited online marketing presence. Threats on the other hand affecting the organization attribute mostly to competition within the market, wage rates, and increased crime rates that target retail business across the commercial areas of operations.
Online competition that other retailers engage in also remains a significant threat together with an increment in wage rates that hurt organization’s financial strength. Counterfeit products for the brand also remain a major threat. To feature in the class of leading global retailers in the current market where competitors employ every mean to ensure they remain relevant and push others out of the market, Foot Locker’s core competence remains essential. The core competence remains evident since its restructuring in 1999 when it changed to Foot Locker (Maurer 2012).
These attributes include evaluation that has led to an increment in earnings, catalysts that encompass business rationalization, as well as improvement in the product mix. Tactical expansion and adequate risk assessment and efficient management also remain among the core competence attributes Foot Lock Company employs. However, the company still has to continue positioning itself through using the right strategies to ensure survival from major competitors that include immediate, impending, as well as invisible competitors. The major competitors of the organization include Nike, Puma, Addidas and Panther among other international brands.
These brands possess mighty economic status and expansive areas market operations. The resulting fact means that they may enjoy the benefits of economies of scale and excellent management skills. Impending competitors may include the Australian UG Boots Company that is doing well in the female and kids footwear an area Foot Lock is struggling. Other invisible competitors may arise from the East where economic developments of various countries are at high levels. These events may prompt new or existing investors to identify customer needs and develop new products in the new markets, as well as the existing ones. Despite the existence of massive competitors, weaknesses and threats that limit the Foot Locker Inc.
to operate efficiently, the company remains a force to reckon in the athletics products field. From a stock market analyst point of view, the researcher would recommend the company as an investing option. The recommendations rely on a number of facts within the business’s financial status and direction. The trend of diversification and acquisition of significant businesses provide positive trends for the organization’s aim of attaining long-term growth (Thomas Et Al 2009).
There however occurred disruptions in 2008 as the world crisis hit all markets. The trend is a significant proves that the company is achieving growth and returns on investments among the shareholders are increasing. The next issue relates to liquidity as well as debt to equity ratio with figures indicating that the company enjoys high liquidity ratio and low debt to equity ratio with significant improvement of these numbers evidenced in 2011. These numbers signify an excellent performance and continuity of the organization while returns will also become realized.
Lastly, the company remains focused and defines its strategic plans and goals to meet long-term objectives indicating an absolute need for perpetual succession. Works Cited Grant, Tina. International Directory of Company Histories. Detroit, Mich. : St. James, 2010. Print. Maurer, John A. "Foot Locker, Inc. - Announces Strategic Plan. " Foot Locker, Inc. - Announces Strategic Plan. 6 Mar. 2012. Web. 9 Feb. 2015.. Olsen, Herluf V. "Five and Ten—The Fabulous Life of F. W. Woolworth. By John K. Winkler. New York: Robert M. McBride and Company, 1940.
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