1. Strategic Analysis Term ProjectLindsay Bleifuss, Matthew Cox, Amy McKanna, Ken Moriyasu, Marc Rose, Steve SperleyPortland State University: Management 562

2. Strategic Mission and Intent
Sustainable, profitable growth
Innovative products
Elevate consumers perceived value
Drive brand awareness
Compelling retail environments
Emotional consumer linkage
Social responsibility
3. External Environment
General Environment
Industry Environment
Competitor Environment
4. General Environment
Demographics
Aging Population
Economics
The economy grew 7.1% in 4th Quarter 2010
Rising oil prices slow growth
Technology
Mobile retailing
Diffusion of information
Global Forces
Increasing dependence on global suppliers
5. Industry Environment
Threat of New Entrants
Few barriers to entry
Switching costs are low
Bargaining Power of Suppliers
Possibility of forward integration
Threat of Substitute Products
Icebreaker
Intensity of Rivalry Among Competitors
Slow growth, intense rivalry.
6. Competitor Environment
Current Strategy and Future Objectives
E-commerce, Youth Sales, International Growth
Strengths
Strong brand recognition (North Face, Nike)
Resources
Weaknesses
Low barriers to entry
Niche market
7. Columbias Internal Environment
Interviewed: Liz Dudley, Senior Merchandise Planner, Bill Fereira, Senior Product Line Manager for Hunting and Fishing,Head Business Analyst of Conception, Design and Production, Kyle Newton, and Senior Business Strategy Project Manager, Beverly Briggs
Core competencies
Resources
Capabilities
Business level strategy
Competitive rivalry
Acquisition
8. Strategy Formulation
Business Level Strategy
Competitive Rivalry and Dynamics
Acquisition and Restructuring Strategies
International Strategy
9. Business Level Strategy
Get away from price competition
Move up-market
Focus on R&D
Differentiate
10. Competitive Rivalry and Dynamics
North Face
Design
Gore Tex
Premium
Targeted audience orientation
Aspirational Marketing
11. Acquisition and Restructuring Strategies
Acquisitions
Move up-market
Mountain Hardwear
Montrail
Increase market power
Sorel
Acquire new technology
OutDry
Restructuring
Several downsizings
12. International Strategy
International Sales/Marketing Channels
Own brand stores, wholesale, and e-commerce
China
Latin America
Canada
Europe
Counterfeits abound
Contract manufacturers in Asia
Comparative advantage shifting
13. Columbia Sportswear Strategy Implementation
Corporate Governance
Boyle Family Control: 21.4 million shares valued at $1.2B
Gertrude Boyle (Chairman of BOD), Timothy Boyle (Son, President & CEO), Sarah Bany (Daughter, seat on BOD)
Executive Team Compensation: Base salary, equity, performance based bonus
Organizational Structure
Cooperative form Multidivisional Structure
Related Constrained Strategy
Differentiation and Innovation Key
Centralized, top-down, decision making but with added flexibility
14. Columbia Sportswear Strategy Implementation
Strategic Leadership
Strategic vision and mission unpublished
Innovation, innovation, innovation
Vertical organizational management structure
Heterogeneous management team
Succession planning ????
Strategic Entrepreneurship
Cross-functional development
Induced strategic behavior
Top-down, core competencies, internal innovation, cooperation.
15. Strategic Competitiveness
16. Strategy Formula Recommendations
Balance innovation with aspirational marketing
Choose trade channels carefully
Keep acquiring up-market
Orient products around specific audience
Look out for shifts in international labor/supply market
17. Columbia Sportswear Strategy ImplementationRecommendations
Create a defined vision and mission
Cooperation and individual entrepreneurialism are key to innovation induced strategic behavior
Succession planning is increasingly important
Seek opportunities to hire senior managers from competitors such as North Face and Nike.
Over time, diversify the Board of Directors
18. Expected Impacts
Recommendations
Continue growth in Chinese market with higher-end, trendy product line
19. Columbia Financials
Summary
20. Financial Performance Comparison - 2010
21. 2011 Projection:
Share price - $72 (currently $65.57)
Market Capitalization (Market Value Added) - $2.43 billion
% increase in MVA over 2010 19.4%
Marginal improvements in ROA and ROE
22. THANK YOU!