Through Year 15 Demigod has made many strategic decisions and changes in order to help all athletes and athletic individuals meet their personal goals. While our company has struggled in past years, Demigod has seen tremendous growth in Year’s 14 and 15. Our executive team has been able to define some weaknesses, correct them, and turn them into strengths while our competitors continue to battle with us for market share in all four geographic regions. Defining our Market Based on our price and S/Q rating, it became clear that Demigod defined its market as a premium, high quality product. Two competitors that have a similar strategy to Demigod are E. Kodiak, and Milestone Footwear. This gives Demigod a good benchmark to strategically make …show more content…
Demigod has demand for its product however our company would either project the demand to be too high causing an excess inventory, or project it to be low, causing stockouts to occur in each of the four regions. Year 15 being the most productive year to date for Demigod, our company implemented the strategy to predict the demand by tailoring our distribution to close if not exactly what the market would want (See Appendix A&B: Demigod’s Retailer Demand Trends Year’s 12-15 in Europe-Africa/Latin America for specific numbers on Demigod). Based on the data for both target markets, Demigod has been increasing the amount of demand for our shoes each year. This is related to better forecasting measures within the market and the money Demigod has been putting towards its retailers. Demigod for the first time in three years has been able to gain stockouts in both target markets. (See Appendix C &D: Demigod’s Stockout Trend Year’s 12-15 in Europe Africa/Latin America for specific numbers on Demigod). For Europe-Africa and Latin America in Year 15 Demigod’s demand was lower than that of our competitors. (See Appendix E& F: “ Competition Retailer Demand Europe-Africa/Latin America Year 15”). Due to these previous struggles in our two target markets we were losing massive amounts of business through stockouts. In Year 15 as said above, Demigod finally was able to gain …show more content…
By building this extra capacity it allows us to avoid having to ship from our other distributors and prevent Demigod from losing money through these high exchange rates which change for good or worse each year. Kodiak seemed to adopt a similar strategy as in Year 15 they produced 1,000,000 shoes from their Latin America plant. Demigod also produced 1,000,000 shoes in Latin America during Year 15. Milestone did not produce any shoe because they do not having a facility located in Latin America (GLO-BUS Software, Inc. 2018). This advantage allows us to still send shoes to Latin America if the exchange rates prove to be in our favor, however we can just make shoes for this region and be able to sell them without the cost of having to ship them from a foreign