Key Inputs and Business Strategy of Deckers Outdoor Corporation
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Identify and analyze the key and most critical inputs (at least two of each category) of Deckers Outdoor Corporation based on these four input categories:
* Environment (factors external to the organization)
* Resources (factors internal to the organization)
* Organizational history (Persistent Traditional)
* Strategy (goals, objectives and strategic initiatives)
Explain why these are critical for Deckers Outdoor Corporation (consider the strategy and how important each one is in providing support) and how they have an effect on each other.
Discuss the organization's strategy and classify it according to Porter's three generic competitive strategies: cost leadership, differentiation, or focus. How well does this strategy fit with the environmental, resource and historical inputs identified?
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Solution Summary
The key input and business strategy of Deckers Outdoor Corporation is determined.
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Decker Outdoor Corporation incorporated in 1975, is a designer, producer, marketer, and brand manager of footwear and accessories for outdoor activities and casual lifestyle use to men, women, and children (Reuters, 2010). The company sells its products worldwide through its wide distribution network. The various key inputs that affect the Decker Corporation include environment, resources, organizational history and strategy. These inputs affect the final outputs of the company by affecting the manner of operations and company processes. These inputs affect different companies differently.
Environment Inputs:
The environment comprises of external factors that affect company operations in various ways. The environmental inputs includes several variables such as individuals, groups or other organizations (Tushman & Nadler, 1978).
Two key environment inputs that affect Decker outdoor Corporation operations are market and suppliers. These two inputs affect the whole operations of Decker Corporations. These environmental inputs are critical to company as it helps company achieving market dominance, customer satisfaction and competitive advantage in the market.
The market factor of environment input include customers, market needs, target segment, market challenges, competitors etc. A company needs satisfy its market factors in order to achieve success in the market. The supplier refers to the company or individuals who directly interact and provide raw materials to the company for making products. By making these products company meets the market demand and customer satisfaction.
Environmental inputs, markets and suppliers are vital inputs to the company. These inputs transform company processes in various ways; they affect various strategies of the company that company formulates in order to get competitive advantage in rapidly changing markets. Suppliers help the company in getting the cost advantage in the market. It also affect the companies output in terms of product quality as when company gets quality material at lower price it pass on these price advantages to their customers and that leads to volume selling, enhanced customer satisfaction and increased revenue and profitability.
Similarly market consists of its customers and their demands. Customers and their demands shape up products and strategies of the company. It plays a very important role in company's success. Increase in customer demands leads increased profits and on the contrary decreased customer demands forces Company to ...
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