Deckers Outdoor Corporation Blue Ocean Strategy Guide & Analysis| Assignment Help
Here’s a Blue Ocean Strategy analysis framework tailored for Deckers Outdoor Corporation, designed to identify uncontested market spaces and drive sustainable growth through value innovation.
Part 1: Current State Assessment
Industry Analysis
Deckers Outdoor Corporation operates across several segments, primarily footwear and apparel. The key business units include UGG, HOKA, Teva, Sanuk, and Koolaburra.
- UGG: Focuses on comfort footwear, primarily sheepskin boots and slippers. Key competitors include EMU Australia, Bearpaw, and other comfort footwear brands. UGG holds a significant market share in the premium comfort footwear segment, but faces competition from lower-priced alternatives.
- HOKA: Specializes in performance running shoes with maximal cushioning. Competitors include Nike, Adidas, Brooks, and Saucony. HOKA has gained substantial market share in the running shoe market, particularly among serious runners and those seeking comfort and support.
- Teva: Offers outdoor sandals and footwear. Competitors include Chaco, Keen, and Birkenstock. Teva competes in the outdoor and casual footwear segments.
- Sanuk: Known for casual footwear, including sandals and slip-ons. Competitors include Reef, Vans, and other casual footwear brands.
- Koolaburra: Provides a more affordable alternative to UGG, focusing on similar comfort footwear styles.
Industry standards include seasonal product releases, marketing campaigns focused on lifestyle and performance, and distribution through retail stores, e-commerce, and wholesale channels. Accepted limitations include seasonality in certain product categories (e.g., UGG boots), reliance on fashion trends, and vulnerability to raw material price fluctuations.
Overall industry profitability varies by segment. Performance footwear (HOKA) shows strong growth, while comfort footwear (UGG) faces maturity and increased competition. Growth trends indicate increasing demand for performance and outdoor footwear, driven by health and wellness trends.
Strategic Canvas Creation
UGG:
- Key Competing Factors: Comfort, Warmth, Style/Fashion, Brand Reputation, Price, Durability, Water Resistance.
- Value Curve: High on Comfort, Warmth, Brand Reputation; Moderate on Style/Fashion, Price; Low on Durability, Water Resistance.
HOKA:
- Key Competing Factors: Cushioning, Performance, Weight, Durability, Style/Aesthetics, Price, Stability.
- Value Curve: High on Cushioning, Performance, Stability; Moderate on Weight, Durability, Price; Lower on Style/Aesthetics.
Teva:
- Key Competing Factors: Durability, Water Resistance, Comfort, Style/Design, Price, Traction, Brand Heritage.
- Value Curve: High on Durability, Water Resistance, Brand Heritage; Moderate on Comfort, Style/Design, Price, Traction.
Deckers’ current value curves reflect a focus on comfort, performance, and brand reputation, depending on the specific business unit. Competition is most intense in style/fashion (UGG), performance (HOKA), and price (across all brands).
Draw your company’s current value curve
Deckers’ offerings mirror competitors in areas like seasonal product releases, basic comfort features, and standard marketing practices. They differ in specific areas like HOKA’s maximalist cushioning, UGG’s iconic brand recognition, and Teva’s focus on durable outdoor sandals.
Voice of Customer Analysis
Current Customers:
- UGG: Customers value comfort and warmth but express concerns about durability, water resistance, and price. They desire more versatile styles and improved stain resistance.
- HOKA: Customers appreciate cushioning and performance but want improved durability, better aesthetics, and more color options. Some find the maximalist design bulky.
- Teva: Customers value durability and water resistance but desire more modern styles, improved comfort for extended wear, and better arch support.
Non-Customers:
- UGG: Refusing non-customers cite high price, perceived lack of versatility, and concerns about animal welfare (sheepskin). Unexplored non-customers may not be aware of UGG or perceive it as irrelevant to their needs.
- HOKA: Refusing non-customers find the aesthetics unappealing, the price too high, or the cushioning excessive. Unexplored non-customers may not be serious runners or may not prioritize cushioning.
- Teva: Refusing non-customers find the styles outdated or lack versatility for everyday wear. Unexplored non-customers may not engage in outdoor activities or may prefer closed-toe shoes.
Part 2: Four Actions Framework
UGG:
Eliminate:
- Excessive reliance on sheepskin: High cost, ethical concerns, limited weather versatility.
- Focus on seasonal trends: Creates inventory risk and limits year-round appeal.
Reduce:
- Price: High price point limits accessibility to a broader market.
- Limited style versatility: Perceived as primarily a winter boot.
Raise:
- Durability: Improve materials and construction for longer lifespan.
- Water resistance: Enhance protection against rain and snow.
- Ethical sourcing: Increase transparency and sustainability in sourcing practices.
Create:
- All-weather comfort: Develop materials and designs suitable for various climates.
- Modular customization: Allow customers to personalize their boots with interchangeable components.
- UGG-as-a-service: Subscription model for cleaning, repair, and recycling of UGG products.
HOKA:
Eliminate:
- Bulky aesthetics: Reduce visual bulk without sacrificing cushioning.
- Limited color options: Expand color palettes to appeal to a wider range of tastes.
Reduce:
- Price: Explore more affordable materials and manufacturing processes.
- Specialized focus: Broaden appeal beyond serious runners to include fitness enthusiasts and everyday wearers.
Raise:
- Durability: Improve outsole and upper materials for longer lifespan.
- Versatility: Design shoes suitable for various activities, not just running.
- Personalized fit: Offer more size and width options, and explore custom fitting technologies.
Create:
- Smart cushioning: Integrate sensors to provide real-time feedback on running form and impact.
- Adaptive support: Develop shoes that automatically adjust to different terrains and running styles.
- HOKA ecosystem: Create a platform for runners to connect, share data, and access personalized training plans.
Teva:
Eliminate:
- Outdated styles: Refresh designs to appeal to a younger, more fashion-conscious audience.
- Limited arch support: Address comfort concerns for extended wear.
Reduce:
- Focus on purely functional design: Incorporate more aesthetic elements.
- Reliance on traditional materials: Explore more sustainable and innovative materials.
Raise:
- Comfort: Improve cushioning and ergonomics for all-day wear.
- Versatility: Design sandals suitable for both outdoor activities and casual wear.
- Sustainability: Increase use of recycled materials and reduce environmental impact.
Create:
- Modular sandals: Allow customers to customize their sandals with interchangeable straps and soles.
- Adventure-ready technology: Integrate features like GPS tracking and solar charging.
- Teva community: Create a platform for outdoor enthusiasts to connect, share adventures, and access exclusive content.
Part 3: ERRC Grid Development
| Factor | Eliminate | Reduce | Raise | Create
Hire an expert to help you do Blue Ocean Strategy Guide & Analysis of - Deckers Outdoor Corporation
Blue Ocean Strategy Guide & Analysis of Deckers Outdoor Corporation
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart