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STRATEGIC MANAGMENT

MGT502

ASSIGNMENT ON

SUBMITTED TO

MR. M. A. JAN

PARTICIPANTS

MIRZA ASIM BAIG (BME-1010)

HAMZA RAFIQ (BEM-1052)

MEHRAB ALI (BME-929)

HAFIZ FAROOQ (BME-865)

MUHAMMAD SHAYAN (BME-927)

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TABLE OF CONTENT

LETTER OF TRANSMITTAL _______________________________________ 3

ACKNOWLEDGEMENT ___________________________________________ 4

ABOUT US _______ _______________________________________________ 5

BRIEF HISTORY___________________________________________________ 7

PRODUCTS ASSORTMENT_________________________________________ 8

MISSION STATEMENT ____________________________________________ 9

OBJECTIVES ____________________________________________________ 10

STRATEGIES ___________________________________________________ 11

DEVELOPING MISSION STATEMENT _____________________________ 12

COMPETITORS _________________________________________________ 13

COMPETATIVE LANDSCAPE ____________________________________ 14

STRENGTH & WEAKNESSES ____________________________________ 16

OPPORTUNATIES & THREATS __________________________________ 17

IFE MATRIX __________________________________________________ 18

EFE MATRIX _________________________________________________ 19

TOWS _______________________________________________________ 20

SPACE MATRIX ______________________________________________ 22

IE MATRIX ___________________________________________________ 23

GRAND STRATEGY ___________________________________________ 24

QSPM ________________________________________________________ 25

LONG TERM STRATEGY _____________________________________ 27

CONCLUSION _________________________________________________ 28

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LETTER OF TRANSMITTAL

Tuesday, July 26, 2011

Mr. M. A. Jan

Strategic Management

BIZTEK,

Karachi.

Respected Sir,

Here is the assignment you have assigned us in the course of ‘Strategic Management’. This assignment is based on to the information about Samsonite.

This report also gives detailed information regarding the Samsonite working strategy as well as SWOT and PEST analysis.

We have tried our level best to it as your requirement.

Sincerely,

All Group Members

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ACKNOWLEDGEMENT

Tuesday, July 26, 2011

Dear Reader:

First of all we would like to thank Allah Almighty for guiding us in making this assignment in the accomplishment of the term assignment we are grateful to our parents, We would like to take this opportunity to thank our instructor Mr. M. A. Jan who made this assignment possible by providing his unconditional guidance and cooperation throughout the semester.

Once again we are thankful and look forward for such support in future.

Sincerely,

All Group Members

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ABOUT US

The Samsonite brand was born in 1910 when founder Jesse Shwayder began producing luggage for turn-of-the-century travelers – a small and affluent group who appreciated the Company's unique, durable and finely crafted products. As travel evolved into a mainstream activity, Samsonite's product mix evolved with it, growing to encompass a diverse range of items for a host of travel needs. Along the way, Samsonite continued to anticipate and fulfill the changing requirements of travelers by introducing a string of "firsts", including the first matching luggage sets, the first lightweight luggage and the first wheeled suitcases, to name just a few. Samsonite's ability to perceive and adapt to the changing needs of travelers has made the brand a leading authority for people on the move, throughout the years. From the roaring twenties, the Depression era, WWII, the rise of the jet age, the exciting sixties and beyond, Samsonite has continued to transform the travel industry through its rich brand history. Today, the global travel industry continues to grow, and Samsonite continues to lead through the continuous introduction of innovative technologies, materials and design concepts, which we market through some of the most recognized brand names in the world. And while each of our brands is specifically focused on its own clearly defined customer group, every product we create continues to embody the same values on which Samsonite was founded – high quality, fine craftsmanship, exceptional reliability and enduring style.

Samsonite is one of the world's largest manufacturers and distributors of luggage and markets luggage, casual bags, business cases and travel-related products under brands such as SAMSONITE®, AMERICAN TOURISTER®, LARK®, HEDGREN®, LACOSTE® and SAMSONITE® black label.

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BREIF HISTORY Samsonite is the leading manufacturer of luggage in the world and the top seller of luggage in the United States, Europe, and Japan. In addition to its world-renowned Samsonite label, the company also markets the popular American Tourister brand. Under those names, Samsonite offers a full line of luggage, including softside and hardside suitcases, garment bags, casual bags, business cases, and other travel bags and accessories. Samsonite changed ownership several times during the 1980s and early 1990s before regaining its independence in 1995. Samsonite owes its start to Colorado native Jesse Shwayder. After growing up in the American West during the late 1800s, Shwayder was working in New York as a salesman for the Seward Trunk and Bag Company by his mid-20s. He was making a lot of money, but he missed Colorado and longed to pursue his dream of starting his own business. Thus, Shwayder quit his job when he was 28 and moved back to Denver. Shortly thereafter, on March 10, 1910, he founded the Shwayder Trunk Manufacturing Company with his life's savings of $3,500. With a work force of ten men, Shwayder began manufacturing what were known as "suitcases" in a 50 × 125 foot room that he had rented in downtown Denver. The management philosophy he adopted to guide the firm from day one, according to company annals, was the Golden Rule (do unto others ... ), to which Shwayder adhered tenaciously.

1910

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PRODUCT ASSORTMENT

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MISSION STATEMENT

Providing Solutions to the Traveling World

Samsonite is the world's luggage leader. A strong brand image, a wide range of products, and a unique global manufacturing and distribution network, all contribute to the remarkable industry stature of Samsonite.

The leadership role held by Samsonite is embedded in nearly ninety years of providing superior products and service. Alongside lengthy experience, the quality and strength that characterize every aspect of the Samsonite business have created a heritage success. Remembering past triumphs but always looking ahead, Samsonite maintains a global vision - a vision that will propel the company into the new millennium.

The future is a world of travel, of abundant mobility. The number of travelers of all kinds will increase dramatically, as will the frequency of their journeys. Future mobility will know few geographical limits, and it will affect every area reached by transportation. In effect, the whole world population will become mobile.

Samsonite is ready for this world-on-the-move. The company envisions a spectrum of travel products capable of providing a solution for every traveling need, for any moment of the day, for any place on earth. This solution is the essence of Worldproof, a concept that will become synonymous with Samsonite through the next millennium.

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SAMSONITE OBJECTIVES • To describe the different dimensions of a global manufacturing strategy • To examine the elements of global supply-chain management • To show how quality affects in depending economies • To illustrate how supplier networks function • To explain how inventory management is a key dimension of the global supply chain • To present different alternatives for transporting products along the supply chain from suppliers to customers

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SAMSONITE STRATEGIES

Samsonite is pursuing several strategic initiatives designed to capitalise on our underlying business strengths, grow and diversify our revenue stream, improve our profitability and our cash flow generation and enhance the resiliency of our business. Key elements of our business development strategies include:

Introducing a stream of innovative and contemporary products into the market;

Strengthening support behind our brand and product marketing and advertising;

Expanding our retail distribution platform;

Pursuing expansion opportunities in high-growth geographic markets;

Exploiting new business opportunities;

Continuing to improve operating efficiencies and cash flow generation.

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DEVELOPING MISSION STATEMENT Our mission is to become leading manufacturer of luggage, business cases and travel supplies. Our goal is to offer our online customers a superior product selection, industry-competitive prices, fast delivery, and the highest level of personalized service. Providing confidence to our global customers online with innovative use of today's latest technology.

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COMPETITORS

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COMPETITIVE LANDSCAPE

Personal income and fashion trends drive demand for clothing. The profitability of individual

companies depends heavily on effective merchandising and marketing. Large companies can offer

wide selections of clothing and have advantages in purchasing, distribution, and marketing. Small

stores can compete by offering unique merchandise, targeting a specific demographic, providing

superior customer service, or serving a local market. The industry is labor-intensive: annual

revenue per worker is about $145,000. Competition for the clothing store industry includes

department stores, discount stores, and Internet and catalog retailers.

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SAMSONITE VS COMPETITORS

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STRENGTHS

Brand Heritage

Durable Products

Product Range

Global Partners

Competitive Prices

WEAKNESSES

Only known for luggage

Lacking user lifestyle products

Marketed towards older generation

Supply Chain Management

Market Penetration

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OPPORTUNITIES

Expand Branding beyond luggage

Diversify market strategy for larger audience

Next generation of business travel

Expended assortment into other industries

THREATS

New Competitors

Change in fashion industry

Global Economic situation

Technology advancement

Main target audience extraction from business realm

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IFE Matrix (Internal Factor Evaluation)

STRENGTHS

Weight Rating Weighted

Score

Brand Heritage 0.13 2 0.26

Durable Products 0.09 3 0.27

Product Range 0.07 4 0.28

Global Partners 0.05 3 0.15

Competitive Prices 0.07 2 0.14

TOTAL 1.1

WEAKNESSES

Weight Rating Weighted Score

Only known for luggage 0.09 1 0.09

Lacking user lifestyle products 0.15 2 0.3

Marketed towards older generation 0.08 2 0.16

Supply Chain Management 0.18 2 0.36

Market Penetration 0.09 3 0.27

Total 1.00 1.18

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EFE Matrix (External Factor Evaluation)

OPPORTUNITIES

Weight Rating Weighted Score

Expand Branding beyond luggage 0.11 3 0.33

Diversify market strategy for larger audience

0.08 2 0.16

Next generation of business travel 0.09 2 0.18

Expended assortment into other industries 0.07 2 0.14

TOTAL 0.81

THREATS

Weight Rating Weighted Score

New Competitors 0.15 2 0.3

Change in fashion industry 0.09 3 0.27

Global Economic situation 0.13 3 0.39

Technology advancement 0.15 2 0.3

Main target audience extraction from business realm

0.13 4 0.52

Total 1.00 1.78

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TOWS MATRIX

STRENGTH

S 1. Brand Heritage

2. Durable Products

3. Product Range

4. Global Partners

5. Competitive Prices

WEAKNESSES

W 1. Only known for luggage

2. Lacking user lifestyle products

3. Marketed towards older generation

4. Supply Chain Management

5. Market Penetration

OPPORTUNITIES

O 1. Expand Branding beyond luggage

2. Diversify market strategy for larger audience

3. Next generation of business travel

4. Expended assortment into other industries

SO - Still there is a big gap in teen products (s1,o1)

- Global partners should give

incentives on sales (s4,o2)

- Products range should be extended (s3,o4)

WO - Should expand product range(w1,o1)

-Expand products for teenagers

(W2,O2)

- Should enter into ladies handbags market(W1,O1)

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THREATS

T 1. New Competitors

2. Change in fashion industry

3. Global Economic situation

4. Technology advancement

5. Main target audience extraction from business realm

ST - Should modify according to changing industry(S1,T1)

- Prices should be reduce (s5, T3)

-Use technology for product improvement (S3,T4

WT - Compete new competitors with product range(W1,T1)

- New market segments should discover.(S4,T5)

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SAMSONITE

SPACE MATRIX

X

Competitive (CA) Industry (IS) Product Quality -1 Barriers to entry 6 Market share -1

Growth potential 4

Brand & Image -3

Access to financing 4

Product life style -2 Consolidation 5 Average -1.75 Average 4.75

Total Axis X score 3.00

Y

Financial (FS) Environmental

(ES) ROA 5 Inflation -2 Leverage 4

Technology -1

Liquidity 6

Demand Elasticity -2 Cash Flow 5 Texation -4

Average 5 Average -2.25 Total Axis Y score 2.75

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SAMSONITE

Internal-External Matrix (IE)

Strong Average Weak

3-4 2.0-2.99 1.0-1.99

I

II

III

IV

V

VI

VII

VIII

IX

Our Total socre of EFE is 2.59 and IFE is 2.28, average is 2.44 means that Samsonite is on average medium position.

High

3-4

Medium

2.0-2.99

Low

1.0-1.99

The

EFE

Tota

l Wei

ghte

d

The IFE Total Weighted Scores

Grow and Build

Hold and

Harvest or

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Grand Strategy Matrix

Right now Samsonite is in medium position. After constructing EFE, IFE and SPACE matrix we found that Samsonite is not standing in very good nor in very bad position. So the blow strategies can be implement for further development.

QUARDANT II

Market development Market penetration Product development Horizontal integration Divestiture

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QSPM

Key Factor Weight Strategy 1 Strategy 2

Opportunities

1. Expand Branding beyond luggage

2. Diversify market strategy for larger audience

3. Next generation of business travel

4. Expended assortment into other industries

Threats

1. New Competitors

2. Change in fashion industry

3. Global Economic situation

4. Technology advancement

5. Main target audience extraction from business realm

1.00

Strength

1. Brand Heritage

2. Durable Products

3. Product Range

4. Global Partners

5. Competitive Prices

Weaknesses

1. Only known for luggage

2. Lacking user lifestyle products

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3. Marketed towards older generation

4. Supply Chain Management

5. Market Penetration

1.00

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Long Terms Strategy

This year 73m passengers will snap up Ryanair’s guaranteed lowest fares. Over 50m of these passengers will save even more money by travelling without checked-in bags while availing of Ryanair’s generous 10kg FREE hand baggage allowance. To encourage more passengers to switch to carry-on bags Ryanair and Samsonite have designed a quality, durable, lightweight carry-on bag which (when properly packed*) complies with Ryanair’s approved carry-on bag dimensions. Ryanair’s approved Samsonite carry-on bag is available for just €79/£69 which includes free delivery anywhere in Europe exclusively at www.ryanair.com. Ryanair’s Stephen McNamara said, “This year 73m passengers will travel on Ryanair’s guaranteed lowest fares with over 50m of them travelling without checked in bags. Ryanair encourages all passengers to travel with just one piece of carry-on baggage and to ensure they can get the maximum benefit of our generous, FREE 10KG carry-on baggage allowance we have developed a lightweight, durable, top quality carry-on bag with Samsonite. At just €79/£69 including free delivery, this is a quality product at a great price.”

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CONCLUSION

The primary goal of this report is to identify action initiatives that make up the Action Agenda for a Samsonite . This formal report on “SAMSONITE” provided a great field of knowledge to us. It tells everyone who reads this report. We possess full consideration about the report. Being a human there may be some mistakes which should be considered as human errors. So far errors and omissions are accepted.

Regards,

All Group Members