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Company report - Gonzaga Student Web Server - Gonzaga University

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Company report - Gonzaga Student Web Server - Gonzaga University Powered By Docstoc
					Group 4:
RJ Liggins
Alex Ellinwood
Courtney Prather


                                  SPOKANE KICKS :
                                 Exclusive Nike Retailer

      Spokane Kicks is a retail company that specializes in Nike footwear. Our

company was founded on January 15, 2010 by RJ Liggins, Alex Ellinwood and

Courtney Prather. Our mission was to open a store that exclusively sold Nike shoes to

the greater Spokane area for an affordable price. We are located on 2401 W. Wellesley

Avenue, which is relatively close to the downtown area, and the Gonzaga University

campus. This is a prime location for us to reach our target market. Our company offers

retail in-store and online for the convenience of the customer.


      Currently we offer 14 different shoes ranging in various colors and sizes. These

shoes include: Nike Zoom 4, Nike Air 2, Nike Cross Trainers, Kobe’s, LeBron’s, Air

Jordan 23’s, Nike Trainers, Air Max, Air Force, Nike Turbo, Nike Elite, Nike Free, Nike

Shox, and Runner’s Delight. As a new company, it is our duties to determine what our

customers want by observing which products are top sellers, and which products should

be discontinued. Based on the information gathered during our second quarter, from

March 1- June 30, 2010, we can determine the shoes and colors that will increase

sales, and maximize profit.


System:

      We are using Excel to develop a database that will keep track of inventory. The

database will record the: Order Date, Product Id, Product Name, Quantity, Unit Price,
Unit Cost, Total Sales, Total Cost, Profit, and Customer. This database will keep us

organized, which allows our company to run as efficiently as possible. We can analyze

the table, and make any corrections or adjustments needed to improve sales and profit.

We can analyze the relationships and cardinality between our customers and the

products they purchase. Using OLAP, we can construct a pivot table to analyze

customer buying patterns. Based on those patterns we can determine which direction

we want to take our company.


Porter’s Model:

       Customers: Our primary market is 15-25 year old athletic, active men and women

in the Spokane Area. Based on our location we would be mostly targeting Gonzaga

students, and local high school students that fit the athletic criteria. Our secondary

market consists of shoe enthusiasts that either collects sneakers or wear them for style

purposes.

       We gain a competitive advantage with our company’s database due to the fact

that our database quickly and accurately updates the shoes sold to which customers,

and the various buying patterns of the customers.

       Suppliers: Nike is our sole supplier. Due to the fact that we agree only to sell

Nike products in our store, Nike provides us with discounts and wholesale deals. This

minimizes cost while at the same time allowing us to sell the shoes at a slightly lower

price than our main competitors due to the fact that we don’t have to pay as much to

carry the products. This gives us the advantage over competing companies, and allows

us to maximize profits.

       Substitute Products: Since we only sell Nike products, stores that sell other brand
shoes such as Adidas, would have a competitive advantage with these substitute

products. However, since we are an exclusive Nike store, we would have the

competitive advantage over other retailers since we would have a larger variety of

products and be able to offer them at a lower price. Also, there is data evidence that

Nike doubles other athletic brands in total sales.

       Industry Competitors: We compete with all the athletic footwear retail stores that

sell Nike shoes. Also we compete with online retailers such as Eastbay and NikeID.

We gain competitive advantage by offering discounts to our primary market, which

would be Gonzaga students and high school athletes. By presenting their student id or

school uniform, they are entitled to a 10% discount. We also provide additional

discounts if coaches purchase team shoes from our store in a bulk order. We would be

the only retailer to offer these discounts in the Spokane area, giving us the advantage.

       New Entrants: Online shoe retailers are our main threat of new entrants. These

retailers could vary from discount shoe stores to individuals selling shoes on auction

web sites. We bar new entrants by being a store that exclusively sells Nike products

while offering both online and in-store service. We also are the only ones to offer our

unique discounts to Gonzaga and high school students.


Our Findings:

We compared each shoe by color, unit cost, unit price, total sales, total cost and profit.

By putting together a pivot table, we concluded that Air Forces, Air Max, Jordan’s,

Kobe’s, LeBron’s, Nike Air 2, Cross Trainers, Elites, Shox, Zoom 4 and Runners Delight

all made a profit compared to the Nike Turbo and Nike Trainers that lost money. Due to

the fact that none of the different styles of Nike Turbo or Nike Trainers made a profit, we
decided to discontinue selling them in order to maximize profit. We also concluded that

we can make an even greater profit by discontinuing certain colors of shoes that did

make a profit, such as Nike Cross Trainers and Nike Elites. Our most successful shoes

are signature shoes that feature an athlete’s name. We decided to increase the amount

of signature shoes we carry, especially Air Jordan 23’s, considering those completely

sold out. By increasing the amount of shoes that presented considerable profit, and by

discontinuing shoes that lost us money, next quarter we should increase our profit and

have reached our goal.

				
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