Product development:
Alternative 1:
One alternative that a company can pursue is approaching and designing a new innovative product that can address the performance needs of an individual according to their activitiesoutdoors. This can be done by bringing awareness about the types and kinds of sportswear and its requirement to the enthusiasts.
Alternative 2:
Another alternative available for the company for further growth is forming and delivering a marketing and advertising campaign through which the company can inspire brand positions and communicate in a different way about the company’s products. This in turn will help the company in enhancing emotional connection with the customers and enhance the product demand as well.
Alternative 3:
Another thing a company can do for growth is to bring brand awareness among the customers who are using their products and the ones who are not using it.
Alternative 4:
Make people aware about the cons of counterfeit products
Most of the people in Colombia are unaware about the disadvantages of counterfeit and illegal products. To bring the sales of counterfeiters down anddiverting customers towards buying original products will help companies grow. To do this, the company can arrange open sessions and conferences through which they can tell the public about the disadvantages of using counterfeit products.
In addition to this, the quality of counterfeit products is always low as compare to the original ones. Moreover, there is no replacement policy or guarantee in case of any defects found after purchasing. Other than that, the raw materials used in these counterfeited products is of low and cheap quality that in turn makes the product uncomfortable to wear. Furthermore, there are no quality control and other practices conducted to ensure the safety and quality of a product. Above all, using counterfeited products is a part of crime and people involving in it are involved in illegal activity in terms of copyright infringement.
State the decision criteria
The best alternative will be evaluated on four factors that are satisfaction level, retention level, costs, benefits and resources. Every factor will be weighted according to its importance in choosing an alternative. The basic goal of Sportiendo is to achieve market growth and to generate positive cash flows and net income because the company will not be able to survive without it. Now the question comes whether the chosen alternative will help in the company’s growth, revenue generation along with positive cash flows and process efficiency or not.
The second factor is based on the satisfaction level that a company will get from its chosen alternative from the customers. Now the company has to analyze whether the chosen alternative will be able to satisfy the maximum level of customers or not.
The third factor is retention level. The company would be able to grow further if it succeeds to retain its customers and making them stop purchasing low counterfeit products. This can be analyzed through evaluating the retention level of the company in terms of customers. Whether the chosen alternative would help the company to make growth in the market or not.
The next factor in evaluating alternatives is the cost that is required to make the chosen alternative applicable. For the implementation of alternative number two, the company would need high cost because Sporteindo needs to do marketing and advertising campaigns in various ways, but it would be worth spending for because the results would be satisfactory for sure.
The tabular representation below has shown the alternatives and the decision criteria on the scale of 1 to 5 as 1 being poor and 5 being excellent.
- Satisfaction Level = 30%
- Retention Level = 30%
- Cost = 20%
- Benefits = 10%
- Resources = 10%
- List the evidence the criteria reveals that shows why the other options should be rejected
Evaluation of Alternatives:
|
Alternatives |
|||||||||
|
|
|
Alternative 1 |
Alternative 2 |
Alternative 3 |
Alternative 4 |
||||
|
Criteria |
Weight |
Ranking |
Total |
Ranking |
Total |
Ranking |
Total |
Ranking |
Total |
|
Satisfaction level |
0.3 |
2 |
0.6 |
5 |
1.5 |
1 |
0.3 |
4 |
1.2 |
|
Retention level |
0.3 |
3 |
0.9 |
3 |
0.9 |
2 |
0.6 |
3 |
0.9 |
|
Cost |
0.2 |
1 |
0.2 |
3 |
0.6 |
3 |
0.6 |
4 |
0.8 |
|
Benefit |
0.1 |
2 |
0.2 |
5 |
0.5 |
3 |
0.3 |
2 |
0.2 |
|
Resources |
0.1 |
2 |
0.2 |
4 |
0.4 |
2 |
0.2 |
3 |
0.3 |
|
|
1 |
|
2.1 |
|
3.9 |
|
2 |
|
3.4 |
List disadvantages of your recommendation and how to mitigate them
Disadvantages of Recommendation:
The Colombian footwear industry is becoming extremely atomized and more competitive. Many companies are facing a major threat from counterfeits companies who are paying less tariffs and import duties and thus have a competitive cost advantage. These companies are offering products at much lower prices that in turn attracts customers and they go for counterfeited products. Because of this factor, it has become impossible for the company to lower down its prices as Sporteindo have to pay tariffs of approximately 120%. .............................
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