Portfolio Analysis

Date: 2015-10-07; view: 425.

Chapter Three

Following, the Directional Policy Matrix about Tod's is represented.

Market Attractiveness	High	Selectivity	Selectivity Growth	Intensive Growth
Medium	Harvesting	Selectivity	Selectivity Growth
Low			Selectivity
		Low	Medium	High
		Company Competitiveness

According to the above represented table, due to a low attractiveness of the Ukrainian market (connected to a political instability, risks related to the war, limitation in money transferring, depreciation of Grivna, limited purchasing power), and to a total absence of Tod's in the country (zero company competitiveness), the result that emerges is an advise to not to enter in the Ukrainian market.

However, with a longer period vision, the Directional Policy Matrix about Tod's could assume the shape as following represented.

Market Attractiveness	High	Selectivity	Selectivity Growth	Intensive Growth
Medium	Harvesting	Selectivity	Selectivity Growth
Low
		Low	Medium	High
		Company Competitiveness

In fact, in consideration to the fact that Tod's is globally recognized as one of the most important luxury shoes companies, it is easy to believe that with a strong investment in advertisement and communication the Italian Group will be able to compete at an high level with the most robust players (Prada, Gucci), with which Tod's contends other geographical arenas.

In that case, a “selectivity” strategy, focused on finding and serving a specific segments (worthy people segments), could be implemented.