Strategic Analysis of the Geox Group

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Strategic Analysis of the Geox Group

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Title: Strategic Analysis of the Geox Group
Author: Serra, Valeria
Abstract: The purpose of this thesis is evaluating the sources of the extraordinary success of the Italian company Geox S.p.A. in order to assess whether its triumph is sustainable or not in the future. Geox S.p.A. is an Italian company based in Montebelluna (Treviso, Italy). It produces high quality and innovative shoes and apparels, and it is considered one of the most successful Italian firms. The company was born thanks to an innovative idea of its founder, Mr. Mario Moretti Polegato, and its fast growth has been due not only to the knowledge of the district, but also to its strong management and its strategies. All these factors have contributed to Geox’s fast growth in a market that was already mature. Notwithstanding Geox’s leadership position in Italy, the company is not immune from the negative effects of the economic and financial crisis and of globalization. The main challenges that the company is facing are mainly constituted by increasing and labour and raw material costs. The crisis, which has been particularly strong in Italy, has made people poorer. Thus, consumers have became more price sensitive, and some of them have chosen to shift from high quality to cheaper goods usually made in developing countries. With the aim of assessing the sustainability of Geox’s success and of recommending strategies to increase profit, it has been developed a business strategy analysis based on applied theoretical frameworks. The analysis is divided in two main subgroups: internal analysis and external analysis. The main finding of the external analysis is that the competition within the industry is strong, and this is coherent with the maturity of the market. Moreover, it allowed us to find the key success factors required to succeed within the industry. The internal analysis suggests that Geox has still considerable sources of sustainable competitive advantage, which are coherent with the key success factors of the industry. In conclusion, the strategies that Geox is following are coherent with the suggestions that have been found in the last part of the thesis, and they are mainly based on addressing new markets, especially in the developing world.
URI: http://hdl.handle.net/10417/3861
Date: 2013-07-31
Pages: 105 s.
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