STR/581 WEEK 2 Strategic Plan, Part 1: Environmental Scan
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STR/581
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University Of Phoenix
STR/581 WEEK 2 Strategic Plan, Part 1: Environmental ScanThis week’s assignment is to review Skechers environmental analysis then talk about how it will affect the creative value that Skechers already has on the market. How Skechers continues to maintain competitive advantage over the rest of th...
part 1 environmental scan this week’s assignment is to review skechers environmental analysis then talk about how it will affect the creative value that skechers alread
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STR/581
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STR/581 WEEK 2 Strategic Plan, Part 1: Environmental
Scan
This week’s assignment is to review Skechers environmental analysis then talk about
how it will affect the creative value that Skechers already has on the market. How Skechers
continues to maintain competitive advantage over the rest of the competition will be covered in
this paper Skechers external, general, and industry operating environments will also be
covered.
In 1992 Robert Greenberg seen that a new type of street show would do well on the
market and founded Skechers. L.A. Gear were the popular shoes for women and Nike was
leading the market in the tennis shoes for men. Today Skechers is a leading in the international
footwear market. Skechers offers more than 3,000 styles of shoes for women, men, and
children and is a two-billion-dollar leader in the market (A Brief History of Skechers Shoes,
2017).
According to the Skechers 2020 SWOT analysis the strengths is that Skechers has
expanded not only in the types of shoes but globally as well. Skechers has been able to do this
due to the aggressive marketing and strong brand recognition. The weaknesses have been the
dependence that they place on the small customer segment and that most Skechers stores are
located inside of or near shopping mall, and American malls are dying off. The opportunities are
great due to the health-conscious customers who are in the middle of an increasing athletic
wear craze, people are walking and running more. With technology growing as rapidly as it has
and the ability to conduct direct-to-customer business, the opportunities are endless. Skechers
does have limited digital capabilities and that is a threat to the company. With the COVID-19
outbreak and the slow down in the economy global sales have gone down (Skechers USA
SWOT & PESTLE Analysis, 2020).
, 2
How Skechers Creates Value & Sustain Competitive Advantage
Initially, Skechers facilities was going to be a distributing outlet for Dr. Martens. Within a
year, Mr. Greenberg had designed and developed his own brand. His market target was the
younger “hip” consumers (A Brief History of Skechers Shoes, 2017). In the past eight years,
Skechers had made dramatic changes to all of it branded retail facilities, which includes brick-
and-mortar as well as ecommerce. This was done in an effort try to control the domestic and
wholesale markets. By shifting more towards the international sales, it gave the company
opportunity to control the marketing and the branding. The main target market that Skechers
went after was the athletic women. Athletic women’s shoes are often ignored, and Mr.
Greenberg recognized that opening in the market and went for it (Trainer, 2020).
It is with hard work and dedication, being able to recognize where the need in the market
it that this company has been able to succeed thus far. Finding that need and going for it is what
creates value for Skechers. Customer service and a fair product prices are what helps
Skechers to sustain a Competitive Advantage (NYSE: SKX Recommendation, 2016).
Skechers Environmental Scan
An environmental scan is when an organization tracks the trends and occurrences in the
company’s internal and external environment, in order ensure future success (Hitt et al., 2016).
To successfully complete an environmental scan a PESTLE Analysis will need to be reviewed.
A PESTLE Analysis is another business tool that is used in business. It is more indebt than the
SWOT. The PESTLE is an analysis on political, economic, social, and technological factors.
The PESTLE is also used to evaluate the general environment and is often jokingly referred to
as PEST analysis (PESTLE Analysis, 2011).
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