One major question that can be asked regarding the HBR Case Study Solution is what impact does the wide range of designer sneakers available today have on retail prices? Now, a sneaker seller may view the higher prices for retail sneakers as an advantage, but in reality, a sneaker seller who discounts would see lower profits.
Therefore, the key to retaining retail prices is to set a margin for profit for sneakers. Having a flat retail price allows sneaker sellers to maintain the profit margin from the initial purchase.
Retail prices set the starting point for other profit maximizing strategies. With a low initial price, retailers will feel more comfortable holding a higher floor price for example. Sneakers are viewed as a luxury item and therefore a higher retail price could make up for the cost of higher quality and designs.
This approach also prevents the sneaker companies from establishing a monopoly in the market place, similar to how footwear giants such as Nike and Adidas control the number of retailers selling their sneakers. This is especially true for brands that offer limited editions or are close to launching new styles.
A competitive market opens up the doors for the shoe companies to sell their sneakers at a much lower price than the competitors. It is for this reason that a variety of shoes are now being launched each year. The result is a wide range of sneakers, which in turn drives up the price and reduces profits for many shoe companies.
One of the best tactics to avoid a competitive marketplace, which can in turn drive down profits, is to use a case study solution. By providing a case study analysis to all competitors, you can effectively keep prices low, while protecting your profits.
A competitor’s case study is an effective strategy, but it requires additional time and money. The HBR Case Solution makes it possible to quickly produce a great case study analysis for your competitor and allow it to be distributed to competitors without incurring extra costs.
Quality is an important factor when analyzing the competitor. The HBR Case Solution comes with hundreds of informative case studies that can help build trust and confidence.
If the sneaker is priced too high, you can create a plan to decrease the pricing further while still maintaining an affordable price. If you determine that the sneaker is priced too low, then a great strategy is to continue to market your sneakers at a lower price and allowing the sneaker company to use their money for investments and other aspects of running the business.
The HBR Case Solution also provides you with a proven path for those who cannot afford to purchase in large numbers. Many larger sneaker companies have strict retail requirements and are required to purchase through specific sources.
If you are able to reach an agreement with your distributor, then you can provide them with a lower price and still be able to sell their sneakers. With this in mind, a common strategy would be to contact a distribution house that offers your sneakers at a reduced price and have them work out a distribution deal with you.