Dakz Performance Sports Apparel Essay

Q1 Define effort and advise about Dakz performance spots lop Industry Definition (The grouping of similar economic or commercial activities that produce goods or services) Page 2.5 Dakz Performance sports turn is into global gymnastic apparel and footwear industry. Dakz started making compression apparel for triathletes, before quickly diversifying into small production runs of cycling and runin clothes for athletes and active Australians. Dakz has expanded its assembly enclosure into panoptic part of performance,fitness and compression wear.Q2- How would you determine this industry is global ?To determine if te industry is global We would consider the athletic apparel merchandise goods traded globally. Dakz and other international brands manage Nike, Addidas etc trade globally so we would be considered this industry to be in the global industry.Q 3 Define industry pass judgment chain and prepare value chain for Dakz. The Industry Value Chain (Athletic Apparel Industry ) Comprises the business processes, people, organisations, technologies and infrastructure which transform raw materials into finished good or services.Q4 Define Industry livelihood cycle and at what stage Dakz lies. Ans Most Industries have a life cycle, similar to a product life cycle that ofttimes longer. Different st assessgies are required at different points in an industry lifecycle phase or stage. Throughout the life cycle, the structure and purlieual an competitive forces that persuade and industry change, As such, an organization demand to be adaptable. The industry would be considered to be in the mature stage of the industry lifecycle, this can be persistent because at this stage - Buyer start to have greater antecedent Buyer have alternative choices and brands and are easily able to compare harm due to the availability of education on internet and availability of different brands in commercialise and super markets. Focus is on efficiency, cost control and m arket segmentation Focus of Dakz on cost reduction due to that they have outsourced manufacturing of goods to china to reduce its cost. Industry rivalry is intensified Most of International brands give care Nike, Addidas has already entered into Australian market and more options are available. Question 5 PESTELRemote environment Analysis (PESTEL) (factors influencing past harvest in the industry and what is judge to drive future addition?) Page 2.23 ( Please refer yellow points for bottled water industry) FactorIssueNature of Impact (=),(+),(-)PoliticalThere is no political pressure across world in exporting athletic apparel and footwear (+)Economic straight compounded annual issue rate (CAGR) 8% has been observed in this industry in Australia from 2008-2012 and component annual growth rate of 0.8% has been observed in this industry in US. (+)SocialCustomers had shown goods growth trend Since 2008(+)TechnologicalCompression apparel is high uply specialized category in a thletic apparel market, Dakz has already started manufacturing, compression apparel along with broad range of perfumes etc. (+)EnvironmentalInformation has not been provided in the case about environmental issues. N/ALegalSome Regulatory rampart has been imposed on wholly foreign owned companies insome Asian countries. (-)Overall On the basis of analysis the future growth of athletic apparel market could be expected to increase.Key Factor promoting future growth as as follows -Strong growth in DemandContinuous growth in demand of compression apparel.Reduction in cost of manufacturing due to outsource of manufacturing in china.Question 6 How would you apply Porters five force model in this case - Threat of New entrants if high - Market is big enough to attract new entrants, There is no such barrier imposed by government on new entrants. There is little expertise required to enter into athletic apparel but require highly specialized knowledge for category of compression apparel. D akz has started business from very small that attract new entrants as well. Buyer Power is high - Buyer have alternative channels for products and have many brands to choose are easily able to compare determine due to the availability of information on internet and in supermarkets. Substitute power is low Dakz is making compression apparel for triathletes and other athletic apparel for athletes and active Australians.Usually athletes do not other clothes as substitutes other than athletic apparel so we can easily say substitute power is low. Supplier power is low - Due to availability of other international brands in market, supplier power is low. Daks has 40% of market share in Australian and can be easily influence suppliers for not increasing raw material price. Industry Rivalry is high- Due to nonstoply increase in demand since 2008, Industry rivalry is high. Price competitiveness drive rivalry. Availability of other international brands, no such barriers on new entrants ad continuous growth in demand of athletic goods pushes price competitiveness. So we can easily say that industry rivalry is high. Summary Overall we can say demand of athletic goods will increase but if Dakz want to maintain or increase its share in Australian and international market, they have to fous on quality and their price must be competitive.Module 3 Understanding the internal environment(Internal Environment the internal influences and performance of an organization, identifying and focusing on the operational drivers, along with ensuring cost-efficient organizational and people performance) (Objective understand current performance in order to drive future strategic options growth, products/services, markets, differentiation, industry position) 1 & 2. Identify stakeholders and align stakeholder needsKeyStakeholdersStakeholders ObjectivesAlignment to objectives met/not metWill Winsome(CEO and Founder of Dakz)Long-term sustainabilityRevenue and profit growthSeeks operation al excellence.Very much aligned with gild strategy due to meaning(a) investment in product development and monies in business.Yes, Being a major supplier to the non-alcoholic beverage market has afforded ABL significant power over its customers. It has enabled the follow to obey cost reductions achieved through efficiency gains rather than pass them onto the retailers. These efficiency gains have allowed the company to enjoy higher profitableness levels than the industry overall, and have supported continuous investment to improve technology and infrastructure.Yes, company is building competitive advantages by process re-engineering to reduce time to marketgiving refrigerator and storage machines at retailers place. Introducingworld class manufacturing facilities and automated warehousing facility ABLs revenue composition changing from 90% CSD found in 2002 to 68% CSD based in 2013. Tom Dwyer(Managing Directors)Sir Rod Fisher(Chairman of the Board)(Qualification Distinguished Australian businessman and former Olympian). Long-term sustainabilityRevenue and profit growthVery much aligned with company strategy , he has joined board in 2009 ad be with company till 2013.Yes, Sales of company has been increased from $23.3 million in 2009-10 to $66.5 million in 2013. Profit of company has been increased from $3million in 2009-10 in $21.6 million in 2012-2013.Board of DirectorsCompany growthMarket sharePrestigeRevenue and profit growthYes , growth has been achieved and Board requested company to accelerate entry into other complementary products to make up decline in CDS (option bottled water industry)ABL has invested in large-scale recycling projects with major customers, such as shopping centers and fast food retailers, and has moved to improve itsenvironment image by emphasizing that all of its water is sourced within two-hour drive of bottling facilities. ABL is very conscious of the impact that its packaging has on landfill. It has several projects underwa y to engender out ways to reduce its environment impact.Yes, Being a major supplier to the non-alcoholic beverage market has afforded ABL significant power over its customers. It has enabled the company to retain cost reductions achieved through efficiency gains rather than pass them onto the retailers. These efficiency gains have allowed the company to enjoy higher advantageousness levels than the industry overall, and have supported continuous investment to improve technology and infrastructure.ShareholdersInnovationRevenue and market share growthincrease in share price and returnTailoring merchandising campaigns to customer groups and to beverages for different times of the day. ABK is exploring a new product idea ready-to- suck up, chilled hot chocolate. First Australian beverage manufacturer to introduce sugar-free drinks using Stevia. ABL developed slimmer cans and smaller bottle sizes.ABL prefers to work with experts for improvement in packaging Company identified organic and acquisition growth options within product range. Also acquired several coffee bean businesses to capitalize on growth of the coffee market in Australia.Yes, growth has been achieved due to increase in market share and ABL has enjoyed higher profitability levels than industry averageReturn on investment and market share are performance measure used in all of ABLs business unit.EmployeesStability of employmentPride of working for an innovative organization.Yes, Focus is on sustainability in employees, workplace and community, therefore areas of concern align with employees and Career prospects such as graduate employment program Significant investment in training and developmentABL is focusing on low cost leadership, and has reduced staff levelsABL is wink largest manufacture and planning to be largest in new future, hence its a matter of pride for the employees who are associated with the company. Community/EnvironmentNo Environment Impact.Healthy and tasty product.Triple botto m line reportingNot much, Impact of bottles on landfill and the carbon output of production and distribution.Not much because CDSs product are not good for health. However to add healthy drinks to the product portfolio, ABL has acquired fruit juice manufacturer in Victoria and entered into milk drink market with the purchase of manufacturing facilities from a dairy co-operative.The company is proud of the fact that it was the first Australian beverage manufacturer to implement triple bottom line reporting GovernmentReduce Health Impacts of CDS on society (Obesity &diabetes)