Final Swot Ppt of Monika Sengar

Pioneer Institute of Professional Pioneer Institute of Professional StudiesStudies

Presentation Presentation

onon

Liberty Shoes Ltd.Liberty Shoes Ltd.

Presented By:-

Monika references

MBA-3rd Sem (Q)

CONTENT:-CONTENT:-

Define-Liberty Shoes Ltd. CompanyDefine-Liberty Shoes Ltd. Company Promoters & Promoter GroupPromoters & Promoter Group VisionVision MissionMission Product MixProduct Mix Joint VentureJoint Venture Location of Manufacturing UnitsLocation of Manufacturing Units Top ManagementTop Management Current Goals & ObjectivesCurrent Goals & Objectives Who are the Stakeholders of CompanyWho are the Stakeholders of Company Analysis of Financial aspects of Analysis of Financial aspects of

CompanyCompany SWOT ANALYSISSWOT ANALYSIS BCG MATRIXBCG MATRIX Porter’s 5 forcesPorter’s 5 forces Company life cycleCompany life cycle

Defining The Business And CompanyDefining The Business And Company

COMPANY- Liberty Shoes Ltd.

Liberty Shoes Ltd. is the only leather footwear manufacturer in India who is among the top 5 manufacturers of leather footwear in the world with a turnover exceeding U.S. $100 million.

Company produce more than 50,000 pairs a day and our range in fashion footwear covers virtually every segment. These are marketed across the globe through 150 distributors, 350 exclusive showrooms and over 6000 multi-brand outlets and sold in thousands every day in more than 25 countries including fashion-driven, quality-obsessed nations like France, Italy, and Germany.

Group Companies –1. Liberty Retail Revolutions

2. Liberty Whiteware

COMPANY- Liberty Shoes Ltd.

Vision and MissionVision and Mission

VISION-VISION- The Group is committed to achieve the highest performance standards in The Group is committed to achieve the highest performance standards in

each area of its business. It envisages itself as the most trusted name all each area of its business. It envisages itself as the most trusted name all over the world.over the world.

MISSION-MISSION- It’s the mission of the Liberty Group to continuously improve the quality It’s the mission of the Liberty Group to continuously improve the quality

of its products using cutting-edge technologies and following the latest of its products using cutting-edge technologies and following the latest trends. The group emerged with an enthusiasm to offer world-class trends. The group emerged with an enthusiasm to offer world-class products to its countrymen and it will carry forward the same attitude products to its countrymen and it will carry forward the same attitude along with the determination to be the global leader.along with the determination to be the global leader.

“ “A mission with a cause, A vision with an attitude”A mission with a cause, A vision with an attitude” The goal of an organization gets reflected in its mission and vision. The goal of an organization gets reflected in its mission and vision.

Liberty, feel the pride of having a goal that inspires us to operate for the Liberty, feel the pride of having a goal that inspires us to operate for the advancement of the people. advancement of the people.

PRODUCT MIX:-PRODUCT MIX:-

PRODUCT RANGE-PRODUCT RANGE- The new range from Liberty is all about style, design, and comfort. The range The new range from Liberty is all about style, design, and comfort. The range

imbibes the spirit of fun and is trendy to the core. There is a product for every imbibes the spirit of fun and is trendy to the core. There is a product for every season and occasion. season and occasion.

PRODUCTS-PRODUCTS- For MENFor MEN For WOMENFor WOMEN For KIDSFor KIDS For SAFETY SHOESFor SAFETY SHOES

BRANDSBRANDS:-:-

JOINT VENTURE-JOINT VENTURE-

Foot Mart Retail, the joint venture between Pantaloons’ Retail Foot Mart Retail, the joint venture between Pantaloons’ Retail (Future Group) and Liberty Shoes(Future Group) and Liberty Shoes, seems to be on shaky grounds due to , seems to be on shaky grounds due to a couple of operational issues. The JV did not take off as planned, and a couple of operational issues. The JV did not take off as planned, and Future Group may pump in more funds and up its stake in the venture. Future Group may pump in more funds and up its stake in the venture. While Liberty Shoes will continue to be a stakeholder in the business, the While Liberty Shoes will continue to be a stakeholder in the business, the operational control could move to Future Group. Currently, Liberty Shoes operational control could move to Future Group. Currently, Liberty Shoes has a 49% stake in the JV.The JV was signed in 2007 and the first value-has a 49% stake in the JV.The JV was signed in 2007 and the first value-for-money format, ‘Shoe Factory’ outlet, was launched across the country. for-money format, ‘Shoe Factory’ outlet, was launched across the country. The size of the format was too large, which impacted the profitability of The size of the format was too large, which impacted the profitability of the business. Many such stores didn’t get space in the best of malls, and the business. Many such stores didn’t get space in the best of malls, and the kind of locational advantage needed in the footwear business. Future the kind of locational advantage needed in the footwear business. Future Group is keen to restructure the business and launch smaller formats to Group is keen to restructure the business and launch smaller formats to improve business feasibility. Also, given the growing pressure on improve business feasibility. Also, given the growing pressure on operational costs and thinning margins in organized retail, the group is operational costs and thinning margins in organized retail, the group is keen to strengthen avenues where margins could be higher, especially in keen to strengthen avenues where margins could be higher, especially in the fashion segment. The branded footwear retail chain was to give the the fashion segment. The branded footwear retail chain was to give the partners a strong foothold in the retail business.partners a strong foothold in the retail business.

Liberty group call the manufacturing unit By Humantech Centres.Liberty group call the manufacturing unit By Humantech Centres.

The locations of the six Humantech Centers are:The locations of the six Humantech Centers are: Gharaunda, Gharaunda, Haryana (approx. 95 k.m. from Delhi ) Haryana (approx. 95 k.m. from Delhi ) Libertypuram, Libertypuram, Haryana (102 k.m. from Delhi ) Haryana (102 k.m. from Delhi ) Karnal, Haryana (124 k.m. from Delhi )Karnal, Haryana (124 k.m. from Delhi ) Near Dehradun in Uttaranchal Ponta SahibRoorkeeNear Dehradun in Uttaranchal Ponta SahibRoorkee

Location of Manufacturing Units-

TOP MANAGEMENT-TOP MANAGEMENT-

Adesh Gupta, CEOAdesh Gupta, CEO Adarsh Gupta, Executive DirectorAdarsh Gupta, Executive Director S.K. Goel, Executive DirectorS.K. Goel, Executive Director Prem Chand Garg, Independent Non Executive DirectorPrem Chand Garg, Independent Non Executive Director Siddharth Sanghi, Independent Non Executive DirectorSiddharth Sanghi, Independent Non Executive Director Raghu Dayal, Independent Non Executive DirectorRaghu Dayal, Independent Non Executive Director Shammi Bansal, Executive DirectorShammi Bansal, Executive Director Sunil Bansal, Executive DirectorSunil Bansal, Executive Director Amitabh Taneja, Independent Non Executive DirectorAmitabh Taneja, Independent Non Executive Director S.K.Arya, Independent Non Executive DirectorS.K.Arya, Independent Non Executive Director Vivek Bansal, Independent Non Executive DirectorVivek Bansal, Independent Non Executive Director

CEO Ex.Directors Ind.Non.Ex.Dir.

Current Goals & Objectives:-Current Goals & Objectives:-

Liberty Shoes to open 100 stores this year.Liberty Shoes to open 100 stores this year. Over the next six months, the company plans to set up 30-50 company-owned Over the next six months, the company plans to set up 30-50 company-owned

stores in towns and cities with a population of around 7-10 lakh.stores in towns and cities with a population of around 7-10 lakh. Tamil Nadu unit of liberty shoes, the units will come up in Coimbatore, Madurai, Tamil Nadu unit of liberty shoes, the units will come up in Coimbatore, Madurai,

Tiruchi, and Puducherry.Tiruchi, and Puducherry. Liberty Shoes will set up three new manufacturing units — one at Roorkee in Liberty Shoes will set up three new manufacturing units — one at Roorkee in

Uttaranchal and two at Ponta Sahib in Himachal Pradesh — to double its Uttaranchal and two at Ponta Sahib in Himachal Pradesh — to double its production capacity to one lakh pairs of footwear per day in the next three years production capacity to one lakh pairs of footwear per day in the next three years and will invest Rs. 160 crore for the expansion plans. "company is coming up with and will invest Rs. 160 crore for the expansion plans. "company is coming up with three plants in. Company is increasing the capacity from 50,000 pairs per day to three plants in. Company is increasing the capacity from 50,000 pairs per day to 75,000 pairs within the year and to one lakh pairs in three years,''75,000 pairs within the year and to one lakh pairs in three years,''

To improve the HR policies and work for employee satisfaction.To improve the HR policies and work for employee satisfaction. To improve the profitability ratio of the company. Adding more choices for shades To improve the profitability ratio of the company. Adding more choices for shades

and effects.and effects. Enhancing Better QualityEnhancing Better Quality Demand will be generated through new variety.Demand will be generated through new variety. Broadening of Distribution Network.Broadening of Distribution Network.

Analysis of Financial aspects of Company:-Analysis of Financial aspects of Company:-

ParticularsParticulars 2005-20062005-2006 2006-20072006-2007 2007-20082007-2008 2008-20092008-2009 2009-20102009-2010

Operating Operating margin (%)margin (%)

13.9613.96 12.8012.80 12.0612.06 8.228.22 7.017.01

Gross profit Gross profit margin (%)margin (%)

13.6113.61 10.9110.91 9.259.25 5.75.7 6.26.2

Net profit Net profit margin (%)margin (%)

9.249.24 7.747.74 6.436.43 3.123.12 3.533.53

EPS (Rs)CroreEPS (Rs)Crore 10.8910.89 10.0810.08 9.379.37 4.414.41 5.405.40

Return on net Return on net

worth (%)worth (%) 23.1523.15 17.3717.37 13.9013.90 6.156.15 6.996.99

Dividend payout Dividend payout

ratio (net profit)ratio (net profit) 38.938.9 -- -- -- --

PBDIT Rs.in cr.PBDIT Rs.in cr. 32.6032.60 33.0333.03 33.3333.33 26.4326.43 25.0925.09

Ratio Analysis:-

Analysis of Financial aspects of Company:-Analysis of Financial aspects of Company:-

Depreciation Depreciation 

Rs.in cr.Rs.in cr.4.04.0 4.634.63 6.386.38 6.596.59 6.796.79

PBIT Rs. In cr.PBIT Rs. In cr. 28.428.4 28.428.4 29.9529.95 19.8419.84 18.318.3

PBT Rs. In cr.PBT Rs. In cr. 23.9223.92 19.5819.58 16.6016.60 7.287.28 9.319.31

PATPAT Rs.in cr.Rs.in cr. 18.9218.92 17.1817.18 15.9615.96 7.527.52 9.209.20

SWOT ANALYSISSWOT ANALYSIS

STRENGTH:-STRENGTH:- Strong financial condition-Strong financial condition- Core competency-Liberty Shoes Ltd. is the only leather Core competency-Liberty Shoes Ltd. is the only leather

footwear manufacturer in India who is among the top 5 footwear manufacturer in India who is among the top 5 manufacturers of leather footwear in the world with a turnover manufacturers of leather footwear in the world with a turnover exceeding U.S. $100 million.exceeding U.S. $100 million.

Owner’s Capital :- 114.50 croreOwner’s Capital :- 114.50 crore No of shareholders :-14802No of shareholders :-14802 Foreign Investment :-2Foreign Investment :-2 Institutional Investment:-5Institutional Investment:-5 Profitability of last 4 Quarters :- In 2010 increased by 13.14% Profitability of last 4 Quarters :- In 2010 increased by 13.14%

compare to previous year.compare to previous year.

Continue…Continue… Market share and standing in market.Market share and standing in market. Market Share 27%Market Share 27% Liberty Shoes is a distributor (150 distributors) network that is Liberty Shoes is a distributor (150 distributors) network that is

continuously growingcontinuously growing It includes the fashion-driven, always in with the latest style, It includes the fashion-driven, always in with the latest style,

elite at one end and the budget conscious, always seeking elite at one end and the budget conscious, always seeking the the best value for moneybest value for money, middle class at the other end. , middle class at the other end.

The third nodal point in this market is the institutional buyer The third nodal point in this market is the institutional buyer from a wide range of industries looking for safety shoes.from a wide range of industries looking for safety shoes.

350 Exclusive showrooms and over 6000 multi brands 350 Exclusive showrooms and over 6000 multi brands outlets.Liberty has big and burgeoning market that spans a outlets.Liberty has big and burgeoning market that spans a vast and varied spectrum.vast and varied spectrum.

Continue…Continue… Liberty declared ‘Franchisor of the Year- 1st Runner- up’ at the Liberty declared ‘Franchisor of the Year- 1st Runner- up’ at the

Franchise Plus Awards 2010Franchise Plus Awards 2010. . All trademarks, service marks, and trade names of liberty shoes used All trademarks, service marks, and trade names of liberty shoes used

herein (including but not limited to: the word mark "liberty", "the liberty herein (including but not limited to: the word mark "liberty", "the liberty logo") are trademarks or registered trademarks of liberty shoes.logo") are trademarks or registered trademarks of liberty shoes.

Bargaining power of buyer-Liberty is largest player in industry with large Bargaining power of buyer-Liberty is largest player in industry with large market share in organized segment. It had a market share of 70% in leather market share in organized segment. It had a market share of 70% in leather shoe segment. Their dominant market share give them power over buyer.shoe segment. Their dominant market share give them power over buyer.

Successful New Products launched in last 5 yearsSuccessful New Products launched in last 5 years 1.Force 101.Force 10 2.Perfect2.Perfect 3.Gliders3.Gliders 4.Freedom4.Freedom 5.Tip-Top5.Tip-Top

Continue…Continue…

Successful Advertisement CampaignsSuccessful Advertisement Campaigns -One need to be healthy to be happy(5.30-9.30am walk campaign)-One need to be healthy to be happy(5.30-9.30am walk campaign) FIT RAHE INDIAFIT RAHE INDIA JOINT VENTURE-JOINT VENTURE- Foot Mart Retail, the joint venture between Pantaloons’ Retail (Future Foot Mart Retail, the joint venture between Pantaloons’ Retail (Future

Group) and Liberty Shoes (49% Shares)Group) and Liberty Shoes (49% Shares) Managerial Managerial Expertise – Experience of CEO, CMO & CFO.Expertise – Experience of CEO, CMO & CFO. CEO-CEO- Adesh GuptaAdesh Gupta He is mechanical engineer and specialized in the application of He is mechanical engineer and specialized in the application of

polyurethane in footwearpolyurethane in footwear Executive Director- Adarsh GuptaExecutive Director- Adarsh Gupta Mr.Adarsh is widely traveled internationally and the nuances of doing Mr.Adarsh is widely traveled internationally and the nuances of doing

business on the global stage. . Adarsh has done a diploma in Footwear business on the global stage. . Adarsh has done a diploma in Footwear design from the globally recognized ARS Sutoria Institute, Milan, Italy.design from the globally recognized ARS Sutoria Institute, Milan, Italy.

Continue…Continue… Executive Director-Shammi BansalExecutive Director-Shammi Bansal He introduced PV technology in India and responsible for He introduced PV technology in India and responsible for

promoting the use of E.P. Polymers in the Indian footwear promoting the use of E.P. Polymers in the Indian footwear industry. Besides initiating the practice of blending T.P.E. industry. Besides initiating the practice of blending T.P.E. (Thermo Plastic Electromers) with P.V.C. for the first time in (Thermo Plastic Electromers) with P.V.C. for the first time in India in 1997 and the Injection E.V.A. compound for the first India in 1997 and the Injection E.V.A. compound for the first time in Asia, he also pioneered Injection Moulding technology time in Asia, he also pioneered Injection Moulding technology for sandals. A proud recipient of many prestigious awards for sandals. A proud recipient of many prestigious awards including the coveted including the coveted ‘Productivity Award'‘Productivity Award' from The from The President of IndiaPresident of India..

Liberty provides a wide range in foot wear for all group of Liberty provides a wide range in foot wear for all group of customer with the best quality,design and with the durable customer with the best quality,design and with the durable material as compare to other brands like relaxo,bata etc.material as compare to other brands like relaxo,bata etc.

Continue…Continue…Human Resource-Human Resource-

Availability of skilled man powerAvailability of skilled man power

Good policies for customer servicesGood policies for customer services

Value for employeesValue for employees

Footwear industry is labor intensive and concentrated in small and cottage Footwear industry is labor intensive and concentrated in small and cottage industry area.industry area.

Availability of human resource is one of important strength of Liberty Availability of human resource is one of important strength of Liberty Shoes Limited.Shoes Limited.

Effective organizational structureEffective organizational structure

Continue…Continue… Cost optimization and margin improvementCost optimization and margin improvement

The Company is focusing on margin improvement and cost effectiveness The Company is focusing on margin improvement and cost effectiveness programs which have started yielding results. The Company has initiated programs which have started yielding results. The Company has initiated strict control on costs in purchases and outsourcing and is looking at global strict control on costs in purchases and outsourcing and is looking at global sourcing for raw materials to improve the net realization. The Company sourcing for raw materials to improve the net realization. The Company has also been clearing old merchandize through discount sales, write offs, has also been clearing old merchandize through discount sales, write offs, etc. which will enable it to focus on improving sales.etc. which will enable it to focus on improving sales.

Logistics and demand based productionLogistics and demand based productionTo optimize utilization of production facilities a new logistics team focuses To optimize utilization of production facilities a new logistics team focuses on obtaining specific orders from the market for best selling designs and on obtaining specific orders from the market for best selling designs and sizes and ensures that all raw materials are available in the factories well in sizes and ensures that all raw materials are available in the factories well in time so that the Company can produce and place in shops the products that time so that the Company can produce and place in shops the products that consumers want. Thus the Company has been focusing on consumers and consumers want. Thus the Company has been focusing on consumers and market demand which will reduce inventories and improve sales-to-stock market demand which will reduce inventories and improve sales-to-stock turnover.turnover.

Continue…Continue… The marketing division takes aggressive promotional exercise throughout The marketing division takes aggressive promotional exercise throughout

the year. Special marketing communication mix are devised for special the year. Special marketing communication mix are devised for special occasions like Diwali, ID, Christmas etc. company promotes its products occasions like Diwali, ID, Christmas etc. company promotes its products by adding value to the lifestyle and a part of the ambitions. It aims at by adding value to the lifestyle and a part of the ambitions. It aims at satisfying consumer’s esteem and self-actualization needs so that consumer satisfying consumer’s esteem and self-actualization needs so that consumer can relate themselves with the company. However, for promotion of its can relate themselves with the company. However, for promotion of its product, the main instrument of the company is its “SHOWROOM product, the main instrument of the company is its “SHOWROOM POLICY.This policy aims at reaching more and more customers through POLICY.This policy aims at reaching more and more customers through Liberty showrooms. Liberty showrooms.

Bondage b/n company and employees.Bondage b/n company and employees. InfrastructureInfrastructure Wide range in product line.Wide range in product line. Leaders in qualityLeaders in quality

Continue…Continue… Liberty’s supply chain provides a clear view of the extent of Liberty’s supply chain provides a clear view of the extent of

the global nature of the company.the global nature of the company. liberty’s supply chain upstream begins with the materials used liberty’s supply chain upstream begins with the materials used

in the production of its products. Many of these materials used in the production of its products. Many of these materials used in production are available in the locations which the in production are available in the locations which the manufacturing takes place, but some specialised materials manufacturing takes place, but some specialised materials have to be imported to the manufacturing company.have to be imported to the manufacturing company.

Capacity for innovationCapacity for innovation Distribution expertiseDistribution expertise Contract manufacturingContract manufacturing Large portfolio of products Large portfolio of products

WEAKNESS-WEAKNESS- Rivalry among existing firms-Mostly numbers of competitors Rivalry among existing firms-Mostly numbers of competitors

are stable, especially because of high entry barriers. This adds are stable, especially because of high entry barriers. This adds to the rivalry among existing firm. Manufacturers watch each to the rivalry among existing firm. Manufacturers watch each other carefully and make appropriate countermove to match other carefully and make appropriate countermove to match the competitors move. Leading competitor are the competitors move. Leading competitor are Lakhani Lakhani shoes,Bata shoes, action shoes, woodland, paragon and shoes,Bata shoes, action shoes, woodland, paragon and relaxo in organized segment.relaxo in organized segment.

Finance-Profitability is decreasing because so some reason Finance-Profitability is decreasing because so some reason like expenses are more then the profit and because of this like expenses are more then the profit and because of this working capital amount is also decreasing.working capital amount is also decreasing.

Continue…Continue…

Sociocultural-Sociocultural-Over a period of time, as disposable income increases, Over a period of time, as disposable income increases, consumer preference changed but Liberty failed to recognize consumer preference changed but Liberty failed to recognize these social changes and they continue with same product over these social changes and they continue with same product over long period of time.long period of time.

Sales and distribution cost is also very high because most of Sales and distribution cost is also very high because most of shops are owned by company itself and staffed employee.shops are owned by company itself and staffed employee.

Liberty focusing on premium segment which account very less Liberty focusing on premium segment which account very less in footwear industry in India.in footwear industry in India.

After sales service like replacement is very poor.After sales service like replacement is very poor.

Continue…Continue… Price of product is not satisfactory.Price of product is not satisfactory.

Sustain growth rate.Sustain growth rate.

No Technical Expertise of Company/Division by the employees.No Technical Expertise of Company/Division by the employees.

No Control over Raw Material. No Control over Raw Material.

No clear Strategic Direction.No clear Strategic Direction.

Competitive Capabilities.Competitive Capabilities.

Weak balance sheet; excess debt.Weak balance sheet; excess debt.

Poor Product Design.Poor Product Design.

Continue…Continue… Low level of stocks in times of peak sales.Low level of stocks in times of peak sales.

Falling behind in R&D.Falling behind in R&D.

Higher overall costs than rivals.Higher overall costs than rivals.

Missing some key skills/competencies.Missing some key skills/competencies.

Internal operating problems.Internal operating problems.

Weak marketing skills.Weak marketing skills.

Single Brand(Leather)Single Brand(Leather)

Too many endorsement Too many endorsement

Continue…Continue… Contract manufacturingContract manufacturing

Spread portfolio of productsSpread portfolio of products

Reliant on retailersReliant on retailers

Reduction of target marketReduction of target market

The organization does have a diversified range of sports products. The organization does have a diversified range of sports products.

The retail sector is very price sensitive.The retail sector is very price sensitive.

No formal mission statement in between the employees.No formal mission statement in between the employees.

Stock policies is outdated.Stock policies is outdated.

Poor per formance employees remain in their jobs.Poor per formance employees remain in their jobs.

Continue…Continue…

TechnologicalTechnological Speed of change of productSpeed of change of product Design AbilityDesign Ability Speed of News reportingSpeed of News reporting

LegalLegal Threaten action by underage workforceThreaten action by underage workforce Poor employment recordPoor employment record Corporate social responsibility Corporate social responsibility Contract manufacturing and copying of product Contract manufacturing and copying of product

(intellectual property)(intellectual property) Trade agreementsTrade agreements

Threat:-Threat:- Threats of new entrants.There are many barriers to Threats of new entrants.There are many barriers to

entry preventing new entrants from capturing entry preventing new entrants from capturing significant market share. Large footwear producer significant market share. Large footwear producer enjoy economy of scale that create cost advantage enjoy economy of scale that create cost advantage over any new rival.over any new rival.

Threat of substitute product:- Consumer switched Threat of substitute product:- Consumer switched from one product to another if alternatives are from one product to another if alternatives are available in same quality and performance range and available in same quality and performance range and have competing price or lesser price.have competing price or lesser price.

Continue…Continue…

Demographic- Indian market is highly fragmented Demographic- Indian market is highly fragmented between rural and urban market. Rural market was between rural and urban market. Rural market was large at approximately 70% of the total market but large at approximately 70% of the total market but was dominated by multiple medium size regional was dominated by multiple medium size regional players and serviced through traditional independent players and serviced through traditional independent dealers.dealers.

Political/legal environment-Political/legal environment-Industry is governed by central by Central Excise and Industry is governed by central by Central Excise and Custom, Factory act and Labor Law and Custom, Factory act and Labor Law and Environmental control actsEnvironmental control acts

Continue…Continue… Global environment- Global environment-

India produced more of gent’s footwear while world’s major production India produced more of gent’s footwear while world’s major production was ladies footwear. India has 10% of world’s raw material and low was ladies footwear. India has 10% of world’s raw material and low tanning cost made it second in footwear production after China.tanning cost made it second in footwear production after China.

The retail sector is very price sensitive. However, most of its income is The retail sector is very price sensitive. However, most of its income is derived from selling into retailers. Retailers tend to offer a very similar derived from selling into retailers. Retailers tend to offer a very similar experience to the consumer.experience to the consumer.

Competition for resources.Competition for resources.

Lack of good design.Lack of good design.

Unforeseen condition. Unforeseen condition.

Continue…Continue… The organization does have a diversified range of sports products. However, The organization does have a diversified range of sports products. However,

the income of the business is still heavily dependent upon its share of the the income of the business is still heavily dependent upon its share of the footwear market. This may leave it vulnerable if for any reason its market footwear market. This may leave it vulnerable if for any reason its market share erodes.share erodes.

Government BureaucracyGovernment Bureaucracy

Natural DisastersNatural Disasters

Costly New RegulationsCostly New Regulations

Vulnerability to Business CycleVulnerability to Business Cycle

Growing Leverage of customers or suppliersGrowing Leverage of customers or suppliers

Reduced Buyer Needs for productReduced Buyer Needs for product

Continue…Continue… Demographic ChangesDemographic Changes

Restive Labour ForceRestive Labour Force

Rising Raw Materials CostsRising Raw Materials Costs

Entry of Potential New CompetitorsEntry of Potential New Competitors

Loss of Sales to SubstitutesLoss of Sales to Substitutes

Slow Market GrowthSlow Market Growth

Adverse shifts in Exchange Rates & Trade PoliciesAdverse shifts in Exchange Rates & Trade Policies

CompetitionCompetition

Fashion TrendsFashion Trends

Bad relation with some suppliersBad relation with some suppliers

Opportunity:-Opportunity:-

Tax-free zone manufacturing base.Tax-free zone manufacturing base.

Product development offers Liberty many opportunities. Product development offers Liberty many opportunities.

There is also the opportunity to develop products such as sport wear, There is also the opportunity to develop products such as sport wear, sunglasses and jewellery. Such high value items do tend to have associated sunglasses and jewellery. Such high value items do tend to have associated with them, high profits.with them, high profits.

The business could also be developed internationally, building upon its The business could also be developed internationally, building upon its strong global brand recognition. strong global brand recognition.

Continue…Continue…

Few and Weak competitors. Few and Weak competitors. Favourable Government Policy.Favourable Government Policy. Expanding to New Geographic Areas.Expanding to New Geographic Areas. Expanding Product Line.Expanding Product Line. Transferring Skills to New Products.Transferring Skills to New Products. Increase market share from Rivals.Increase market share from Rivals. Acquisition of rivals.Acquisition of rivals. Alliances or JVs to Expand coverage.Alliances or JVs to Expand coverage. Openings to Exploit new technologies.Openings to Exploit new technologies. Openings to Extend brand name/image.Openings to Extend brand name/image. Adequate training opportunities.Adequate training opportunities.

Continue…Continue… Serving additional customer groups.Serving additional customer groups.

Vertical integration.Vertical integration.

New MarketsNew Markets

E commerceE commerce

Research and developmentResearch and development

Increase product lineIncrease product line

Product diversificationProduct diversification

Change target marketChange target market

New manufacturing countriesNew manufacturing countries

Porter’s 5 forcesPorter’s 5 forces

Porter’s 5 forcesPorter’s 5 forces

This model is used to identify the sources of competition, and how to gain This model is used to identify the sources of competition, and how to gain advantage over them.advantage over them.

Potential EntrantsPotential Entrants Other Footwear manufacturers expanding their portfolioOther Footwear manufacturers expanding their portfolio Cheap copies from the Far EastCheap copies from the Far East

BuyersBuyers The buyers of footwear have changed in the past decade. The buyers of footwear have changed in the past decade. There has been and increase in women purchasing the shoes, There has been and increase in women purchasing the shoes, New Generation has a different tastes and purchasing methods.New Generation has a different tastes and purchasing methods.

SubstitutesSubstitutes When required for professional use there is no substitute goods, but as When required for professional use there is no substitute goods, but as

a fashion item there are many other goods that could be purchased.a fashion item there are many other goods that could be purchased.

Continue…Continue… SuppliersSuppliers

Using production facilities in the Far East has give Liberty economies Using production facilities in the Far East has give Liberty economies of scale. Although there are now problems arising from these factories, of scale. Although there are now problems arising from these factories, they are switching to making there own goods, labour and political they are switching to making there own goods, labour and political unrest causes delays in manufacturing and shipping of the goods.unrest causes delays in manufacturing and shipping of the goods.

Competitive RivalryCompetitive Rivalry Other companies of footwer like Bata ,Action, Addidas, Reebok, Other companies of footwer like Bata ,Action, Addidas, Reebok,

offering more choice of shoe, introducing endorsement by sports offering more choice of shoe, introducing endorsement by sports personalities, sponsoring sporting leaguespersonalities, sponsoring sporting leagues

Some company have a good product mix, covering a wide range of Some company have a good product mix, covering a wide range of footwear market.footwear market.

BCG MatrixBCG Matrix

BCG:-BCG:-

Continue…Continue…

Placing products in the BCG matrix results in 4 categories in a Placing products in the BCG matrix results in 4 categories in a portfolio of a company:-portfolio of a company:-

BCG STARS (high growth, high market share)BCG STARS (high growth, high market share) In Liberty shoes ltd. Windsor and Warrior comes as star because they are In Liberty shoes ltd. Windsor and Warrior comes as star because they are

expensive product and market share is also high because its makes high expensive product and market share is also high because its makes high revenue for the company.revenue for the company.

BCG QUESTION MARKS (high growth, low market share)BCG QUESTION MARKS (high growth, low market share) In Liberty shoes ltd. Prefect and Footfun comes in questionmark as In Liberty shoes ltd. Prefect and Footfun comes in questionmark as

because they are growing product in the market but market share is also because they are growing product in the market but market share is also low because competitor provides that kind of product in lower cost rather low because competitor provides that kind of product in lower cost rather then the company.then the company.

BCG CASH COWS (low growth, high market share)BCG CASH COWS (low growth, high market share) In Liberty shoes ltd. Force 10 and Freedom comes In Liberty shoes ltd. Force 10 and Freedom comes

under the cash cow because they are good product in under the cash cow because they are good product in the market but market share is low because the the market but market share is low because the demand of that kind of particular is low as compare to demand of that kind of particular is low as compare to other in this basically safety shoes are there.other in this basically safety shoes are there.

BCG DOGS (low growth, low market share).BCG DOGS (low growth, low market share). In this categoty coolers is came because of low In this categoty coolers is came because of low

growth and low market share in the market.growth and low market share in the market.

Introduction

Growth

MaturityDecline

Time in years

Sale

s or

Pr

ofits Liberty

1954 Origin

2006 2007 2008 2009 2010

RS.cr

221.12 237.54257.89 247.53

Suggestions:-Suggestions:- EXTERNAL OPPORTUNITIES:EXTERNAL OPPORTUNITIES:(O) (O)

Investment by tie ups. 2) Investment by tie ups. 2) Participating in sport Participating in sport market.market.

3 ) Stable government policies. 4) 3 ) Stable government policies. 4) Technology which prefers Technology which prefers product. product.

EXTERNAL THREATS:(T) 1) Cost EXTERNAL THREATS:(T) 1) Cost price Pressure by other companies. price Pressure by other companies. 2) Rising prices of inputs-raw 2) Rising prices of inputs-raw material 3) Absence of trade material 3) Absence of trade practices with major regional practices with major regional trading blocks. 4) Problems like trading blocks. 4) Problems like demands low down in export demands low down in export market. 5) Changing technology and market. 5) Changing technology and trends.trends.

INTERNAL STRENGHTS:(S) 1) INTERNAL STRENGHTS:(S) 1) Heavy investment in technology Heavy investment in technology and rawmaterial. 2) Strong R & D and rawmaterial. 2) Strong R & D base. 3) High sales. 4) Equipped base. 3) High sales. 4) Equipped human resources. 5) Healthy human resources. 5) Healthy relations with suppliers and buyers.relations with suppliers and buyers.

6) Stable strategy6) Stable strategy

(SO) Platform is present to sale (SO) Platform is present to sale the products to high end market. the products to high end market. Better understanding within the Better understanding within the company regarding government company regarding government policies. Production capacity can policies. Production capacity can be increased.be increased.

(ST) Decreasing the margin by (ST) Decreasing the margin by negotiation. Challenge the new negotiation. Challenge the new technology. Purchasing power is technology. Purchasing power is good. Margin pressure can be good. Margin pressure can be reduced through negotiation with reduced through negotiation with dealers. dealers.

INTERNAL WEAKNESS:(W) 1) INTERNAL WEAKNESS:(W) 1) Lack of skilled employee for Lack of skilled employee for production.2) Company is highly production.2) Company is highly dependent on RM. 4) Lack of dependent on RM. 4) Lack of professional for handling professional for handling technology. And to use the technology. And to use the substitute.5) Low marketing in substitute.5) Low marketing in some placessome places

((WO) By hiring employees good WO) By hiring employees good in vital areas. Marketing can be in vital areas. Marketing can be done in rural areas and the other done in rural areas and the other part of India except westpart of India except west

(WT) Margin pressure can be (WT) Margin pressure can be reduced through negotiation with reduced through negotiation with dealers and price of product can be dealers and price of product can be adjusted according to the adjusted according to the

competitors.competitors.

Opinion about the companyOpinion about the company

Liberty Shoes Limited Company is sound well financially. Liberty Shoes Limited Liberty Shoes Limited Company is sound well financially. Liberty Shoes Limited strives to provide a stimulating workplace environment that effectively enables its strives to provide a stimulating workplace environment that effectively enables its employees to provide outstanding service to customers. Though there was fall in employees to provide outstanding service to customers. Though there was fall in year 2009 because the expenses was more as compare to profit with that year but year 2009 because the expenses was more as compare to profit with that year but Liberty has outstanding made its path to reach the track of profit and showing it in Liberty has outstanding made its path to reach the track of profit and showing it in the balance sheet of 2010. the balance sheet of 2010.

ConclusionConclusion

Liberty is a company who believes in adopting new Liberty is a company who believes in adopting new technology and trends as the ceo and top management is technology and trends as the ceo and top management is aware and expert in their department. Liberty is good at a aware and expert in their department. Liberty is good at a characteristic that is able to give a very significant characteristic that is able to give a very significant capability such as useful skill, valuable resource of the capability such as useful skill, valuable resource of the organization, competitive capability, Training to the organization, competitive capability, Training to the employees, good relationship and the giving the firm the employees, good relationship and the giving the firm the market advantage with the achievements. market advantage with the achievements.

ReferencesReferences

www.Libertyshoesltd.com www.moneycontrol.com www.libertyshoes.com http://investing.businessweek.com/research/sto

cks/people/people.asp?ticker=881200 www.shoesindustry.com Many old Articles on liberty shoes in Many old Articles on liberty shoes in

internet.internet.

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