Industry Profile
The footwear industry in Pakistan is a significant contributor to the
country's economy, with major production centers in cities like Lahore,
Karachi, and Sialkot. Known for its export-oriented approach, the
industry produces a diverse range of footwear, from traditional
handcrafted shoes like khussas to modern athletic and casual
footwear. Pakistan has a well-established leather industry, providing a
steady supply of quality raw materials for footwear production. The
sector faces challenges such as international competition,
technological constraints, and the need to comply with global
standards. Government initiatives, including incentives and subsidies,
aim to support and promote the industry, while market trends reflect a
blend of traditional and modern styles. The industry's resilience is
evident in its ability to adapt to evolving consumer preferences,
incorporating elements of fashion, comfort, and sustainability into its
products.
Company Profile
Founded in 1986, Metro Shoes is an indigenous Pakistani brand. It is ISO certified and
has a clear vision of catering to the footwear needs of the community. Metro Shoes over
the years, has established its reputation as one of the finest brands in fashion footwear
and accessories all across the country and beyond borders, showcasing a large variety
of casual, seasonal, formal, fancy and bridal collections in ladies shoes, clutches,
handbags and men’s shoes, keeping in perspective the varied communal likes, interests
and aspirations. Metro imports, as well locally produces, a pleasingly diverse line of
distinctive designs that comprehensively caters to market sentiments. Metro Shoes has
become one of the first shoe brands that women could turn to for feminine style they
coveted and comfort they thought was impossible to attain. With rich leathers and
unique details, Metro Shoes has captured the essence of modern femininity… whether
that means taking a leisurely walk or running a board meeting. Metro Shoes pampers
your feet with the cushioned, contoured foot bed and experience all-day comfort! The
best service, the best price, and the best design, all over the world. Organizational
hierarchy consist of CEO and HODs of functional department who report to CEO. The
location of Metro shoes’ factory is Sungjani. The total number of employees is
approximately 1000. The business is sole proprietorship.
Key Players
HOD Marketing
HOD Operations
HOD Finance
HOD HR
Mission/Goals/Objectives
Mission
Our mission is to be the biggest and the best leader in Pakistan’s footwear industry by offering
trendy, elegant and sophisticated shoes with tremendous quality, superior customer services and
highly modern techniques.
Vision
Our Vision is to strive for continuous improvement, taking timely & quality decisions and
making affirmative contribution towards the achievement of our goals thus responding
effectively to customer needs and being able to grasp the hearts of our valued customers.
Creativity: Metro shoes stresses on innovation.
Core Values
Excellence:
Our Vision is to strive for continuous improvement, taking timely & quality decisions and
making affirmative contribution towards the achievement of our goals thus responding
effectively to customer needs and being able to grasp the hearts of our valued customers.
Creativity:
Metro shoes stresses on innovation. We have to come up with new dazzling ideas and novel
modifications to satisfy our customers to the fullest.
Quality:
To provide best & the most high standard of Shoes and accessories.
Integrity:
This is one of the critical components. A culture of integrity has to start at the top and can be
seen in the conduct and activities of employees by promoting ethical business environment.
Teamwork:
Teamwork supports the achievements of company and helps achieve team goals in a long run.
Unique Store Concepts:
Each and every outlet of Metro is carefully planned and designed keeping in view the essential
distinctive mood of the brand as well as the exclusive needs of the customer in that particular
vicinity to indulge in their fashion aspirations.
STEEPLE Analysis
Social
Recognizing an aging population may lead to the development of
comfortable and supportive footwear for seniors, catering to their
specific needs.
If Metro Shoes operates in diverse markets, understanding and
incorporating cultural preferences in design and marketing strategies,
such as offering styles that resonate with different cultural aesthetics.
Technological
Metro Shoes could enhance its online presence by investing in a user-
friendly website, mobile apps, and online marketing to tap into the
growing trend of online shoe shopping.
Implementing RFID technology for efficient inventory management,
reducing the chances of overstock or stockouts.
Economic
If there's a shift in the economy with increasing disposable incomes,
FootFusion might focus on introducing premium and luxury footwear
lines. Monitoring economic conditions in key international markets to
adjust pricing and marketing strategies accordingly.
If the cost of traditional manufacturing materials rises, exploring
alternative, cost-effective materials without compromising quality
Environmental
Introducing a line of eco-friendly shoes made from recycled materials
to appeal to environmentally conscious consumers.
Implementing energy-efficient manufacturing processes and exploring
ways to reduce the carbon footprint in the transportation of products.
Political
Owing to the political instability in the country, there are numerous
challenges to tackle such as inflation and economic downturn.
Complying with labor laws and ethical employment practices to
maintain a positive corporate image.
Legal
Ensuring that all Metro products meet safety standards and comply
with regulations in each market.
Adhering to laws regarding product labeling, warranties, and consumer
rights to maintain trust and transparency.
Ethical
Metro Shoes is engaging in community development projects,
charitable initiatives, or sustainable business practices to demonstrate
social responsibility.
Metro Shoes ensures that raw materials are sourced ethically, with fair
labor practices and environmentally responsible methods.
Promoting diversity in marketing campaigns and ensuring a diverse
and inclusive workplace.
SWOT Analysis
Strengths
Metro Shoes has a strong and well-established brand in the footwear
industry, known for quality and style.
The company offers a wide variety of footwear, catering to different
age groups, styles, and occasions.
It has a countrywide network of exclusive Metro showrooms at more than 150 prime locations
across 30 plus cities in Pakistan.
Weaknesses
Metro’s online presence is not as robust as some competitors,
potentially missing out on the growing trend of online shoe shopping.
The company may struggle if there's a rapid shift in fashion trends,
impacting inventory management.
Oppertunities
Investing in and expanding the online sales platform can tap into the
increasing trend of online shopping for footwear.
Partnering with renowned designers or celebrities for exclusive lines
can boost brand visibility and appeal.
Exploring untapped markets or introducing new product lines can open
up avenues for growth. Such as men accessories.
Embracing sustainable practices in manufacturing and promoting eco-
friendly footwear can attract environmentally conscious consumers.
Threats
Metro Shoes faces strong competition from other well-established
footwear brands such as Borjan, Ndure and Stylo.
During economic recessions, consumer spending on non-essential
items like footwear may decline.
The risk of counterfeit products can harm the brand's reputation and
erode consumer trust.
Events like natural disasters or geopolitical issues can disrupt the
supply chain, affecting production and distribution.
Porter’s Model of Five Forces
Threat of New Entrants
Moderate: Established footwear brands often benefit from economies
of scale, strong distribution networks, and brand loyalty. New entrants
would need significant capital, expertise, and time to build a
comparable reputation and distribution system. However,
• Bargaining Power of Buyers:
High: Buyers in the footwear industry, which include both individual
consumers and retailers, often have various options. If consumers have
low brand loyalty and many alternatives, their bargaining power can be
high. However, if a brand has a strong reputation, unique offerings, or
a loyal customer base, it can mitigate buyer power.
• Bargaining Power of Suppliers:
High: Suppliers of raw materials (leather, rubber, etc.) and
manufacturers can have significant bargaining power. If there are few
suppliers for essential materials or if switching costs are high, suppliers
may have more influence. However, large footwear organizations with
strong relationships and multiple suppliers may have more negotiating
power.
• Threat of Substitutes:
Moderate: The threat of substitutes in the footwear industry can
come from alternative types of footwear (sandals, slippers) or non-
footwear products (like casual sneakers replacing formal shoes). The
extent of the threat depends on consumer preferences, lifestyle
changes, and fashion trends.
• Intensity of Competitive Rivalry:
High: The footwear industry is typically highly competitive. Established
brands, new entrants, and private labels all compete for market share.
Factors such as branding, design, pricing, and marketing play a crucial
role. Innovations, partnerships, and effective supply chain
management are essential for organizations to stay competitive.
Corporate Level Strategy
Metro Shoes Uses the expansion strategy and is planning on creating new products and
reaching new audiences. Its next target is the vast overseas Pakistan in Gulf countries. This
is because the has a strong economy. Overall, this strategy has large earnings potential for
executives, which can lead to raises and expansion to employee benefits packages as well.
Business Level Strategy
Hybrid (Cost Focus and Differentiation):
• Metro Shoes aims to provide a combination of cost efficiency and
differentiation. They offer a range of affordable, yet stylish and
functional, footwear options. This strategy appeals to a broad customer
base by meeting both price and quality expectations.
Functional Level Strategies
• Marketing Strategies:
• Brand Positioning: Metro Shoes position itself as a trendy and
affordable footwear brand for young, fashion-conscious consumers.
PRODUCT MIX
• Casual Footwear:
• Casual shoes for men, women, and children suitable for everyday
wear.
• Formal Footwear:
• Formal shoes designed for business or dressy occasions,
including men's and women's styles.
• Athletic and Sports Footwear:
• Sports shoes designed for various physical activities, including
running, walking, and training.
• Fashion Footwear:
• Trendy and stylish shoes that follow the latest fashion trends for
men, women, and children.
• Sandals and Slippers:
• Open-toed footwear, including sandals and slippers, for warm
weather or casual settings.
• Boots:
• Various types of boots, such as ankle boots, knee-high boots, and
winter boots.
• Accessories:
• Footwear-related accessories, including shoe care products,
insoles, and other items.
DISTRIBUTION CHANNELS
Metro Shoes operate its own retail stores, either as standalone locations or as part of shopping
malls or retail complexes. These stores allow direct interaction with customers, showcasing the
full range of products.
Marketing Strategies:
Discounts and Sales:
• Metro Shoes uses periodic discounts or sales promotions to
attract customers, clear inventory, or promote specific product lines.
Seasonal Promotions:
• Offering special promotions during key seasons or holidays to
align with consumer shopping trends.
Operations Strategies:
• Supply Chain Efficiency: Optimize the supply chain to ensure a
steady and cost-effective flow of materials and finished products. This
might involve working closely with suppliers and logistics partners to
minimize lead times.
• Quality Assurance: Implement stringent quality control
measures to maintain high product standards. Consistent quality
contributes to customer satisfaction and brand reputation.
• Market Research:
• Conducting thorough market research to understand consumer
preferences, industry trends, and emerging market demands. This
informs the development of products that meet customer needs.
• Design and Innovation:
• Investing in design and innovation to create footwear that is not
only functional but also aesthetically appealing. This could involve
collaborations with designers or the development of in-house design
teams.
Finance Strategies:
Capital Structure: Metro Shoes would determine an optimal capital
structure that strikes a balance between debt and equity financing.
This consist of 20% debt and 80% equity
Inventory Management:
• Implementing efficient inventory management practices to
optimize stock levels, reduce carrying costs, and minimize the risk of
obsolete inventory.
Fixed Asset Management:
• Regularly assessing the value and usefulness of fixed assets,
such as manufacturing equipment and retail properties, and making
decisions on maintenance, upgrades, or divestiture.
Human Resources Strategies:
• Code of Conduct:
• Establishing a code of conduct that outlines expected behavior,
ethical standards, and principles for all employees.
• Equal Opportunity and Diversity:
• Implementing policies that promote equal opportunity and
diversity, fostering an inclusive workplace culture.
• Compensation and Benefits:
• Outlining policies related to employee compensation, benefits,
and reward systems.
• Work-Life Balance:
• Addressing work-life balance through policies that support
flexible work arrangements, leave policies, and wellness programs.
• Professional Development:
• Providing policies for professional development, training
opportunities, and career advancement within the organization.
• Employee Privacy:
• Ensuring policies that protect employee privacy and personal
information in compliance with relevant laws.
• Compliance with Labor Laws:
Ensuring compliance with local and national labor laws related to
employment contracts, working hours, wages, and benefits.
• Environmental Regulations:
Adhering to environmental regulations governing manufacturing
processes, waste disposal, and sustainability practices.
Tax Compliance:
• Abiding by tax regulations and ensuring accurate reporting of
financial information in compliance with tax laws
