Complementarities and strategic fit

ution and retailtypes of functional uses, target customer base).
Geox distributes its products worldwide throughSimilarly, we will then expand the discussion to the
two different channels: a wide international circuitother activities of Geox's configuration.
of about 8000 independent multi-brand shops andThe "red" strategic position: where competitors
a network of single-brand Geox Stores. Thiscrowd
second type of distribution allows Geox toMost of Geox's direct competitors 8 tend to have
leverage its brand and to keep a more directa strategic position distinguished by two
relationship with customers, systematicallycharacteristics: a) they tend to be specialists
monitoring their tastes and preferences. ((produce within a narrow product range) and
Currently, Geox has some 250 stores, 80% ofcompete in one or few market segments (by
which are run under franchising agreements, whilecustomer group -e.g. men's, women's, kids', or
20% are directly run and owned flagship stores,product type - e.g. sport, casual, classic or dressy
strategically located in the heart of the mostfootwear, sandals, boots, sneakers, etc.); b) they
important cities in the world. Geox's commercialinnovate the product in terms of design, style
strategy has been incremental and somewhat(fashion) and materials, mainly focusing on the
prudent. Firstly, it penetrated and saturated theupper of the shoe. These two choices are
domestic market. Then, it attacked the adjacentcomplementary. They reinforce each other
European markets, consolidating significant sharesbecause they leverage knowledge of specific
in Germany, Spain, France and, lately, the UK andcustomers (the style of the upper varies greatly
Poland.depending on the segment; for example dressy
In each country, it has first gained a significantshoes for women versus men; sandals versus
market share through third party distribution andboots; brown shoes versus sneakers), and
then built its own retail network. Only when itsbecause they allow focusing R&D investment on
market share was large enough, Geox darednew design and materials. (
attack the relevant market leader (e.g. Mephisto inHere players race (and invest) to design and
France). After consolidating its presence in Europe,produce the most fashionable shoes of a certain
Geox has recently turned its attention to the USkind, or, at least, those that, during a given
and China. As regards the US market, Geox hasseason, will likely meet the tastes of the target
signed a major distribution agreement withcustomer groups. Investment in style (brand
Nordstrom and, at the same time, opened flagshipincluded) is also intended to strengthen the
stores in key locations, starting with Madisonspecificity and originality of the company product,
Avenue in New York. In China, Geox has openedincreasing its differentiation in the chosen segment.
10 stores in the Shanghai area, but also sells itsReport this article
shoes through the Aokang retail network, whichThis article is free for republishing
consists of 2,000 outlets.Source:
To keep the application of the theoreticalRepublish this article
framework simple, we start by contrastingAsk a Question About this Article
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