A strategic management study of Shoe City International Trading Corporation

• Main Author: Rayo, Adonis A.
• Format: text
• Language: English
• Published: Animo Repository 1998
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2245
• Institution: De La Salle University

Shoe City International and Trading Corporation (SCITC) is a manufacturer and distributor of various kinds footwear locally and abroad (through exports). It is currently the largest footwear manufacturer in the country, in terms of production capacity, with a total workforce of 3,000 personnel. Locally, SCITC maintains 17 distribution networks strategically located all over the country, through its affiliate Footluckers. The company, likewise, distributes footwear products in different department stores, such as, Shoe Mart, Isetann, and other shoe outlets nationwide. The Philippine footwear industry is composed of two major groups, the leather footwear and the non-leather footwear. For the past years, the industry has grown substantially through the continuous support of the government. Consequently, the Department of Trade and Industry (DTI, in consultation with the private sector has included footwear among the export priority products under the Export Priorities Plan. However, the growth of the footwear industry for the past two years exhibited a slow down as less expensive footwear, mainly coming from China and Vietnam, proliferated the local market. The formulation of strategies for SCITC was derived mainly from the strengths and weakness of the company and from the opportunities and threats, externally, through a comprehensive analysis of the environment. Current strategies and objectives were, likewise, evaluated to come up with a more appropriate strategies and objectives for the company. It is proposed in this paper that the company should adopt Overall Cost Leadership as its Generic Strategy. There are three proposed Corporate Strategies formulated for SCITC and these are as follows: Increase trading activities Reduction of export volume Expand geographic scope This paper would also recommend Functional Strategies to complement proposed Corporate Strategies. The formulation of strategies and its implementation will be guided by some basic frameworks, basically that of Michael Porters, which will be discussed in the course of this paper.