might be.
The extensive property ownership of the organisation is also perceived as a significant strength. In the short term there may
be an opportunity to buy time whilst the cost of producing overseas increases due to rising fuel costs and demands for better
pay in the producing countries. Thus, cheaper competition might be seen as a short-term threat, which will eventually
disappear. The property portfolio could be used to help finance Hammond Shoes through this period. It might do this by
disposing of property, or perhaps more innovatively, by selling all of its property and leasing it back. This would provide
liquidity which could be used to ease the company through the next few years.
WT – options that minimise weaknesses and avoid threats. The high cost of labour (weakness) and the continued provision
of cheap imports (threat) may mean that Hammond Shoes should consider diversifying into areas of the footwear market
where there is either less demand for raw materials or where a premium can be charged, either due to the quality of the
product or due to appropriate branding. For example, focusing on shoes for children, which requires greater precision and
16less raw material, might be a possibility. The attraction of this is that it is a product which needs regular renewal (as feet
grow) and because parents are conscious of getting exactly the right fit to avoid permanent damage to their children’s feet.
The acknowledged strengths of the retail experience, where employees have extensive product knowledge and excellent
customer care, might also be harnessed to support this approach. Branding can reinforce the message, focusing on Hammond
Shoes as primarily a supplier of children’s shoes. Adult shoes may be given a lower marketing profile, but are available for
cross-selling when parents are visiting for measuring and fitting shoes for their children.
Other niche areas might include high quality fashion shoes and boots, where customers are willing to pay a premium for the
product. This might demand a certain amount of exclusivity, reinforced through appropriate marketing. Again, one of the
attractions of the fashion market is the relatively short shelf-life of the product. Many consumers wish to renew their shoes
each season as a fashion statement, not due to any desire to keep their feet dry and clean.
