Micro Environment

Date: 2015-10-07; view: 452.

Strengths and Weaknesses

Strengths

High confortable product – the specific strategy of Tod's Group is to deliver a luxury product, which is confortable at the same time. This characteristic makes Tod's shoes more appreciated by the final customers.

Good positioning in Far East – Tod's Group is present in China, Japan and South Korea with respectively 62, 30, and 16 directly operated retailer shops. The China represents nowadays the country with more opportunity to long-term growth, and with a positive growth rate of the population.

Weaknesses

Low level of sales in clothing – despite the fact Tod's Group launched a specific brand for clothing, Fay, this specific segment represents a little percentage of the Group Revenues, due to a strong identification of the Tod's with only shoes.

High geographical concentration of the brand Hogan sales – the sales of products with brand Hogan are too concentrated in the Italian market, due to the difficulties to make this brand more international.

Competitors

Tod's is positioned as a high quality luxury manufacturer, thus main competitors are Italian and European one.

• In the shoes segment, the main players are: Gucci; Ferragamo; Sergio Rossi; Prada; Church (owned by Prada); Paciotti; F.lli Rossetti; Moreschi.

• In the leather accessories segment, the main competitors are: LVMH; Gucci; Hermes; Prada; The Bridge; Louis Vuitton.

• In the clothing segment, the main players are: Gucci; Prada; Aspesi; Burberry; Louis Vuitton.

Suppliers

The main suppliers are some little factories, which cover some steps of the production process under a strict control of the Tod's Group. These suppliers have a small size and don't have any contract power. Other suppliers are the leather crafter and the clothing company.

Clients

Tod's sells its products by means of two different channels:

• 229 directly operated retail stores (DOS);

• 87 franchised stores.

The main focus of the Group is to increase more the DOS.

New Entrants

In the Tod's competitive arena, recently, different operators have entered:

• players operating in the clothing segments, which have moved toward a higher quality of product level;

• brands, which traditionally are not linked to the luxury fashion (Pirelli; Harley Davidson; Ducati).

Threat of Substitutes

Due to the fact Tod's Group pursuit a strategy to offer a functional and confortable product, it is difficult to find in the market a real substitute.