(ML131) Group 9 - Midterm Assignment - Slides
(ML131) Group 9 - Midterm Assignment - Slides
GROUP 9
Nguyễn Trần Liên Nhi - 2212255033 Nguyễn Lê Thảo Phương - 2212255040 Cao Minh Anh - 2215255072
Ngô Lê Hạo Nhiên - 2212255036 Võ Kiều My - 2215255073 Hồ Xuân Nguyên - 2213255061
TABLEOF
INTRODUCTION ( 01 )
STRATEGIC RECOMMENDATIONS ( 05 )
CONCLUSION ( 06 )
INTRODUCTION
OVERVIEW OF ALLBIRDS
1000
800
1000
927
710
Founded: 2014
Headquarters: San Francisco, USA 400
Mission 0
to create products that not only 2021 2022 2023
FINANCIALPERFORMANCE 250000000
200000000
150000000
100000000
50000000
0
2019 2020 2021 2022 2023
Quarter Annual
INTRODUCTION
MARKETOVERVIEW Global Footwear Industry Overview
9)
-202
025
(CAGR 2 Market size (2024):
2.37%
~$457.09 billion
Revenue forecast in
2030: $588.22 billion
Largest market
Key
players
Fastest growing market
INTRODUCTION
MARKETOVERVIEW Global Footwear Industry Overview
Degree of Innovation
Impact of Regulations
Fragmented
Substitutes
Market Growth Stage Pace of Market Growth
Medium Accelerating
End-user Concentration
Low | Medium | High Accelerating | Decelerating
INTRODUCTION
MARKETOVERVIEW Sustainable Fashion Trends
Gen Z and Y make purchase decisions based on personal, social, and values
INTRODUCTION
MARKETOVERVIEW Sustainable Fashion Trends
50 49
48
20
16
(eg. zero pollution, recyclable
10
materials, or minimized packaging)
0
Overall Baby boomers Gen X Millenials Gen Z
INTRODUCTION
MARKETOVERVIEW Sustainable Fashion Trends
36%
Asia Pacific Market
Revenue Share, 2023
INTRODUCTION
MARKETOVERVIEW Allbirds' Position in the Market
Strengths Weaknesses
Innovative and sustainable products
Strong brand image Limited product assortment
Good mix of skilled leadership team Premium pricing
Positive employee outlook Limited brand awareness
Omnichannel presence
Opportunities Threats
Changing Consumer Preferences Intense Competition
Material, design, production advancements Economic Uncertainty
Growth of e-commerce Changes in trade policy, tariffs, regulations
TARGET MARKET SELECTION
SCREENINGPROCESS&SELECTIONOFTARGETMARKET(JAPANVS.SOUTHKOREA)
PRELIMINARYSELECTION-BERI
Criteria Reason to choose Weight
Attitude towards foreign investors (Ease of Impacts ease of entry and potential
2.5
doing business ranking) regulatory hurdles.
Bureaucratic delays (Time required to set up Affects speed of store openings and
2.5
a business) business operations.
Communications & infrastructure (Logistics Important for supply chain and e-commerce
2.5
performance index score) efficiency.
1
Determines the ability to effectively localize
Local management & partners 3.75
the brand.
2
Total weights 25
2
Currency Convertibility 3.75 4.49% 3 11.25 9.57% 2 7.5
Market growth (Compound annual growth rate Growth rate determines long-term
0.15
1 - CAGR) revenue potential
Buying power of customers (GDP per capita Consumer spending power affects
0.20
2 (USD)) premium product sales
Psychic distance (Hofstede’s cultural distance Cultural and business differences affect
0.05
score) localization efforts
1
2
Total weights 1.00
Market
0.15 2.89% 2 0.30 1.76% 1 0.15
growth
2
Buying power
0.20 $33,766.5 4 0.80 $33,121.4 4 0.80
of customers
FINE-GRAINEDSCREENING-MARKETATTRACTIVENESS
Overall MA score Overall MA score
Criteria Weight Research Data Score Research Data Score
(Weight x Score) (Weight x Score)
Average industry
0.05 13.63% 3 0.15 9.21% 3 0.15
margin
Competitive Highly
0.10 Fragmented 4 0.40 1 0.10
conditions concentrated
Market prohibitive
1 conditions 0.05 30% 1 0.05 8% 4 0.20
Local market
0.20 High 4 0.60 Moderate 3 0.60
knowledge
Product’s fit to
0.25 High 4 1.25 Low 2 0.50
market demands
FINE-GRAINEDSCREENING-COMPETITIVESTRENGTH
Criteria Weight
Overall CS score Overall CS score
Research Data Score Research Data Score
(Weight x Score) (Weight x Score)
Technology
0.10 $15.3 million 4 0.40 $44.6 million 5 0.50
position
Quality of
distributors and 0.10 High 4 0.40 Moderate 3 0.30
service
Financial
resources, access
0.10 3.39 5 0.50 2.32 3 0.30
todistribution
channels
Local market
0.20 High 4 0.80 Very high 4 0.80
knowledge
Product’s fit to
0.25 Very high 5 1.25 Very high 5 1.25
market demands
FINE-GRAINEDSCREENING-COMPETITIVESTRENGTH
Criteria Weight
Overall CS score Overall CS score
Research Data Score Research Data Score
(Weight x Score) (Weight x Score)
Technology
0.10 $15.3 million 4 0.40 $10.2 million 4 0.40
position
Quality of
distributors and 0.10 High 4 0.40 Very high 5 0.50
service
Financial
resources,
access 0.10 3.39 5 0.50 2.11 3 0.30
todistribution
channels
Table 13. Competitive Strength (CS) score analysis for South Korea
TARGET MARKET SELECTION
SCREENINGPROCESS&SELECTIONOFTARGETMARKET(JAPANVS.SOUTHKOREA)
Allbirds’ score < Competitors’ score (2 or more pts) → 1
Allbirds’ score < Competitors’ score (1 pt) → 2
Allbirds’ score = Competitors’ score → 3
Allbirds’ score > Competitors’ score (1 pt) → 4
Allbirds’ score > Competitors’ score (2 or more pts) → 5
FINE-GRAINEDSCREENING-COMPETITIVESTRENGTH
Criteria Weight
Overall CS score Overall CS score
Score Score
(Weight x Score) (Weight x Score)
Quality of distributors
0.10 4 0.40 2 0.20
and service
Financial resources,
access
2 todistribution 0.10 5 0.50 5 0.50
channels
Strong
Market Attractiveness (MA) of Allbirds
Invest/Grow
3.9
Selectivity Strategies
Moderate
3
2
Low
1
Direct investment
5 3.5 3 2.4 1
Partial investment Strong Moderate Low
Asset specificity
Country risk
Brand equity Market potential
Cultural distance
Financial capability Market competition
Government restrictions
International experience
9
9
9
9
9
9
-4
-5
-3
-7
-2
-1
-6
16
70
20
30
40
50
60
practices
Share of consumers buying products from
→ Demand for biodegradable, low-carbon, and Urban professionals
eco-friendly production and manufacturing
recycled-material products is rising. in Japan as of February 2024, by age group
COMPETITIVE STRATEGY IN JAPAN Consumer Behavior in Japan
Retail Shopping
Brand Loyalty E-commerce Behavior
Preferences
Brand heritage
research products Physical stores are still
is crucial: prefer
Over online before relevant, with a
brands with
legacy and 60% purchasing preference for high-end
craftsmanship. department stores
Top platforms
prefer established
brands they trust
Isetan Tokyu Hands
Premium Japanese sneaker A rising Swiss footwear A French brand focused Adidas (Stan Smith
Market brand known for its stylish, brand known for its high- on ethical production Primegreen,
Position high-quality lifestyle shoes performance running shoes and sustainable Futurecraft Loop) →
with 46 stores within Japan. and eco-friendly materials. sneakers. Sustainable product
lines but broader
market focus.
Emphasizes craftsmanship, Hoka One One →
Uses carbon-neutral Uses recycled materials,
durability, and timeless Performance-oriented
Sustainability materials, CleanCloud™ fair-trade rubber, and
designs, aligning with eco- but gaining traction in
Strategy technology, and bio-based low-impact production
conscious consumer lifestyle sneaker
shoe components. methods.
preferences. culture.
COMPETITIVE STRATEGY IN EACH COUNTRY Key Competitors & Strategies
Product Consistency
Natural materials: sugarcane, Expectation of authentic eco-friendly practices.
eucalyptus fibers, and merino wool Aligning with competitors like Veja and On Running.
STANDARDIZATION
COMPETITIVE STRATEGY IN JAPAN Adaptation & Standardization
Product Adaptation
Onitsuka Tiger have successfully leveraged Japan-exclusive collections.
Certain color and style adjustments
Brand exclusivity and desirability
Limited-edition products that
Elegance and minimalism are widely valued in Japanese design.
represent Japanese cultural themes.
Marketing Communications
Cultural characteristics: authenticity,
72% prefer established brands over new entrants => trust-building
dependability, quality ,..
through local influencer partnerships
Japanese influencers promoting on
Brand awareness and credibility.
reliable local platforms like YouTube,
Veja and Onitsuka Tiger also use localized influencer marketing.
Instagram, ZOZOTOWN, Rakuten,..
Physical stores remain relevant in Japan: Isetan and Tokyu Hands.
Retail Experience
Japanese consumers expect personalized service.
Customized, hands-on shopping
Onitsuka Tiger's in-store experience focuses on craftsmanship and
experience
brand heritage.
ADAPTATION
COMPETITIVE STRATEGY IN JAPAN Adaptation & Standardization
ADAPTATION
VALUECHAIN COMPARISON
INBOUNDLOGISTICS OPERATIONS
Procurement function ensures the Allbirds' manufacturing facilities and
timely and efficient delivery of expertise in product design and
sustainable raw materials to the development ensure high-quality
production site. footwear.
The procurement team coordinates The company's operations align with
with suppliers to ensure high-quality its sustainable values and focus on
materials that meet sustainability innovative and eco-friendly materials.
standards. Design and innovation capabilities
They work with the inbound logistics differentiate Allbirds' products in
team to transport materials to the terms of comfort, quality, and
production site effectively. sustainability.
VALUECHAIN COMPARISON
OUTBOUNDLOGISTICS MARKETING&SALES
Allbirds' distribution and delivery Allbirds' marketing team promotes the
processes ensure timely product brand through various channels,
distribution to retail stores, wholesale emphasizing sustainability and unique
partners, and customers. design features.
The company's vertical supply chain Retail stores, e-commerce platforms,
and logistics management and social media presence contribute
competences support efficient to brand awareness and customer
delivery. engagement.
Sustainability practices and focus on After-sales service, including customer
customer experience contribute to a support and a shoe recycling program,
seamless and convenient shopping reinforces sustainability and customer
experience. loyalty.
VALUECHAIN COMPARISON
AFTERSALESSERVICE SUPPORTACTIVITIES
Allbirds' sustainable materials sourcing,
Customer service team provides manufacturing equipment, and
support, handles inquiries, returns, distribution centers support efficient
and exchanges. operations.
Enables innovation, sustainability tracking,
The company focuses on providing
personalized marketing, and efficient
excellent customer service to build
customer support.
strong customer relationships. Ensures employee skills and training align
Allbirds' commitment to with sustainable procurement, operations,
sustainability is reflected in their marketing, and customer service.
after-sales service, promoting Coordinates with suppliers to ensure high-
product lifecycle responsibility. quality and sustainable raw materials for
production.
CHALLENGES &RISKASSESSMENT
Challenge Impact Mitigation Strategy
Operational Costs
What should be reduced?
Product Complexity
Enhanced Storytelling
What new elements can be introduced?
Improved Shopping Experiences
CONCLUSION
Allbirds have strong potential in Japan and South Korea, but
success requires localized strategies. With Japan favoring
premium quality and South Korea driven by trends and digital
commerce, Allbirds should balance brand consistency with
adaptation to succeed in these markets.