Drivers

D for Drivers

Kingston/RANEPA MBA Moscow 2015

The Business Strategy Game ©

Drivers

Artem Polulyakh Mikhail Kryukov Alexander Kuzitchev Nikita Avdeev

Andrey Lisitsa Sofya Sheyman Alexey Novikov

Mission and strategy

Drivers Company is a global leader in footwear industry. We are driven to provide best in class sneakers to achieve better results in sports, life and business. Our mission is to give our clients what they really want - comfortable, pretty and art-of-state instrument of success. We believe that quality is always in the first place, there we are headed.

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Segmentation – Targeting - Positioning

Segmentation Targeting PositioningMass premium 25+ active High quality,

citizenCSR prize winner

Development Plan (Starting point)Objectives:

• Quality improvements (which items affect the quality most). Product mix, rejection level improvement, 6 sigma.

• Price evaluation (slightly upper that market). Based on investment in marketing and ad.

• Market share evaluation. Correct production plan based on its evaluation.• Production efficiency improvement investment• Sell the plant the 2nd - 3 rd year• In 5 years to allocate manufacturing based on OPEX efficiency.• Put attention to CSR – recyclable materials, packagings, greener materails. (2nd, 3rd

year).• First 3 years a strategy can be preserve the market share then MS increase at the

expense of price flexibility• Liquidity has to be controlled to keep proper credit rating – good ration between

longterm-short term liabilities Drivers

3A. Cost focus

1. Cost leadership 2. Differentiation

3B. Differentiationfocus

Lower cost Differentiation

Competitive advantage

Competitivescope

BroadTarget

Niche

Source: Porter (1985), “Competitive advantage”

Change in understanding of CA

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BSG Matrix

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Strategic Decisions (Work in Process)

• CSR – special attention• Production – 1000K shoes in US product line

sold; new plant in Asia Pacific built; sustained quality improvement

• Marketing and celebrity appeal – low expences; corrected price and improved market share as a result

• Sales – AP as a key region• Finance – using credit Drivers

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Asia Pacific (key market)

Financial Results

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Corporate social responsibility



• The target was keep balance between significant level of CSR and low expenses. For realization Ethics Training / Enforcement and Workforce Diversity Program were chosen as a cheapest and most effective parameters. On the next step Charitable Contributions. And every year company gradually increased its expenses on this activities.

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• Near the end of the game we start invest to Energy Efficiency Initiatives and Use of Recycled Boxing / Packaging (their have a middle cost) and as a result D Drivers twice won Corporate Social Responsibility Award for Year.

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Final Score (Results)

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Thank for attention!

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