• • • • • • • • • What are the footwear industry's top 3 tangible assets, top 3 intangible assets, and top 3 capabilities? Tangible Assets Manufacturing Equipment Computer hardware and software for design Land and Building Intangible Assets Patents and trademarks Capable employees Brand Name Capabilities Marketing and product innovation Intellectual capital of workforce Fruitful partnerships with suppliers that reduce costs and/or enhance product quality and performance Describe how these asset categories and capabilities impact one another; i.e. how are (or should they be) integrated? (Be sure to respond in general, NOT for your BSG company and team) Resources are any asset or productive input that firm owns or controls. These assets, along with capabilities, help a company align their business strategy with their organizational goals. It also helps them to develop their competitive strategy. Not all resources are worth noting. A company has to determine which resources gives them their competitive edge. A company should analyze what resources they have that is not easily duplicated and that sets them apart from their competitors. What makes a resource valuable is the appropriability, scarcity and demand of the resource in comparison to their competitors. Tangible assets, intangible assets and capabilities work together to help an organization operate efficiently and allow for maximum profit. The top 3 tangible assets in the footwear industry include: • Plant, land, buildings • Equipment and tools • Technology, including but not limited to, computer software The top 3 intangible assets in the footwear industry include: • Trademarks, registered names, licenses, and patents • Brand recognition and loyalty • IT/software specialists that innovate current technology • Highly trained, efficient, and effective employees (all levels) The top 3 capabilities in the footwear industry include: • Recognition and response to customer demand and preference • Development of unique, quality, and attractive products • Producing quality footwear at price stable/relative costs These 3 asset categories must be integrated together as to make the resources valuable. Montgomery (2005) suggests our flawed thinking is that “profits should go to the resource that generates it”; this as she later says is not a fundamental truth in evaluating company competencies/resources. Take for instance a highly skilled manager that leaves firm A due to salary restrictions and cannot replicate his results in firm B. This is, as Montgomery postulates, is due to a lacking in other asset resources/competencies. What this means is that the the framework/infrastructure of a firm has a lot to do with the relative success/productivity of an individual part. In the footwear industry in particular we can examine the above assets and see how and why they should be integrated to create and attain value. When a company has high brand recognition and customer loyalty, it is easier to introduce new products to the market that customers are demanding. For instance, Nike regularly introduces new products to the market, products that are not dissimilar from other athletic apparel manufacturers. However, customers recognize the Nike name and brand and continue to trust their products. This bodes well for Nike and not so much Outdoor Voices, who has a loyal but limited market cap. If people had to choose between highly recognized brands and those they have limited information on and experience with, they will choose the brand they know. What are the footwear industry's top 3 tangible assets, top 3 intangible assets, and top 3 capabilities? Tangible Assets for the footwear industry are: building and land, the equipment use for the production line and the distribution system and the design software. The Intangible Assets is the brand name recognition that creates customer loyalty, employee satisfaction and well qualified and trademarks and patents. The capabilities for the industry will be the ability for a quickly respond to the changes in the needs of customers, innovative talent to create and develop attractive footwear and consistency on high quality products. Describe how these asset categories and capabilities impact one another; i.e. how are (or should they be) integrated? Companies that produce timely responses, show flexibility and produce rapid advances are the leaders in the global market. These capabilities promote the reconfiguration and transformation of asset structure, keeping the loyalty of their customers. A company that has well motivated and confident staff will produce more than one with poor spirits or under pressure. A company with a positive standing plus patents secures and promotes sales. Consequently, capabilities and assets (tangible and intangible) complement each other. 1) What are the footwear industry's top 3 tangible assets, top 3 intangible assets, and top 3 capabilities? Tangible Assets: The various plants that are in North America, Latin American, etc. (Physical Plant), The distribution between the continents and inter continents (Distribution Channels), and Software used to run the company and take orders (Accounting Value.) Intangible Assets: Company name (Brand Name), Image Rating (Reputation), What's our shoes used for such as running or casual (Technical Know How.) Capabilities: Developing a high quality shoe at a respective rate (Speed of Product Development), How well we are reaching out tot he consumers about new products (Marketing), other lines of shoes such as Private label or upgrading superior materials to making a better shoe (Product Innovation.) 2) Describe how these asset categories and capabilities impact one another; i.e. how are (or should they be) integrated? (Be sure to respond in general, NOT for your BSG company and team) The items listed above are vital to operating a successful business in the shoe industry. Those listed are key to simply operating a business shoe industry. Throughout the past 2-3 weeks we have seen these 9 listed items take shape and form our companies. For example, brand name relates to reputation. If the company has an excellent reputation then the brand name grows. Once the brand name grows then the marketing because more expansive and new markets can emerge relating to product innovation. Once innovation arrives with expanding into new markets physical plants such as new factories emerge in those growing markets and distribution channels widen. That is a quick example of how some of the topics that were touched on in the article relate to one another. It is important to focus on a starting point but even more important to view the broad picture. Sometimes it is important to build a plant for manufacturing prior to marketing the items. In the shoe industry and in general broad perspective of business, a company needs to grow demand and make sure they are producing a product that the consumers what that they market to.
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