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Members:
Juan Carlos Arevalo Garcia
Adriana Katherine Loor Zambrano
Adriana Cecilia Astudillo Castillo
María Mercedes Riveros Mariño
Montes Calçados case. One
What are the characteristics of the
step ahead.
women's footwear sector?
EXTERNAL FACTORS OPPORTUNITIES THREATS

POLITICIANS

• Presence in fast-growing cities

ECONOMIC • 60% of sales of women's footwear • Very short fashion cycles
• Brazil had about 6% of the world market

• Clients over 35 years of age emphasis on comfort

and women over 60 give high scores to the model
SOCIALS • Influence of celebrities and friends on the
and "makes me feel attractive".
footwear fashion
• U.S. women buy 3 pairs of shoes

• Online distribution
• Advertising through social networks, gala events,
• Artisanal
TECHNOLOGISTS fashion magazines worldwide
• E-commerce on the rise in Asia and the Americas
• Physical stores

southern

ECOLOGICAL
LEGALS
 What are the key internal strengths of the
company?
company?
INTERNAL FACTORS WEAKNESSES FORTALEZA

• Retail stores
BARGAINING POWER • Brazilian Designs
• Women over 35 years of age represent
OF CUSTOMERS • Own stores with a complete line of
40% of the company's sales
MC
• Zappos online store

BARGAINING POWER
• Subcontracting network

OF SUPPLIERS • Sophisticated method of managing

supply chain

NEW COMPETITORS

SUBSTITUTE PRODUCTS • Flaquered by fashion items

urban, avant-garde and innovative

RIVALRY BETWEEN
COMPETITORS
• Nike, VF, Vans, Toms • Admiration to Havaianas
EXISTING
 What are the challenges and opportunities for MC? How
should MC prioritize them?
FORTALEZA OPPORTUNITIES
1 - Retail stores * Presence in fast-growing cities
i • Women over 35 years of age represent 40% of salesof the company * 60% of sales of women's footwear
1 • Zappos online store * Brazil had about 6% of the world market
1 • Subcontracting network * Clients over 35 years of age with emphasis on comfort and women over 60
years of age
1 • Sophisticated approach to supply chain management give high scores to the model and "makes me feel attractive".
N • Admiration to Havaianas
* U.S. women buy 3 pairs of shoes
* Online distribution
* Advertising through social networks, gala events, fashion magazines, etc.
world
* E-commerce on the rise in Asia and South America

WEAKNESSES THREATS
A / • Brazilian Designs * Very short fashion cycles
I * Own stores with complete MC line * Influence of celebrities and friends on footwear fashion
W%I * Flaquered by urban, avant-garde and novelty fashion items. * Handcrafted Manufacturing
w/ * Nike, VF, Vans, Toms
* Physical stores

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Should MC start distributing through online retailers? Analyze the
implications and consequences of this decision What could MC do to
alleviate retailers' lost sales? What would be the potential impact of the
cannibalization of the Internet channel on MC megastores?

o MC should distribute through online retailers but only its classic products so that retailers with
physical stores can have more space for the new designs, thus avoiding cannibalism and
having two independent sales channels without causing losses to both physical and virtual
stores.
Should MC start distributing to smaller cities?

Delete Increase
The "familiarization" taboo
Sales through growing cities

Reduce Create

o Eliminating
Exclusivity for large cities in retail stores Partnerships with retailers in growing cities
Victoria's
existing taboo on familiarization can increase sales, as well as reduce the exclusivity of large
cities, but in order to sell within small cities, alliances with retail stores should be created,
leaving MC's own stores only in large cities.

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What are the pros and cons of changing the pace of
new product introduction?
Based on the fact that 60% of the core market are young women who are only looking to be
fashionable, a line of products must be created to meet the customer's needs, but at the same time
Products
Current New
60% of purchases are
40 % of purchases are

Current
made by young women
from women over 40
who are only looking for
years of age.

Markets
fashion.
Create more shoe
options that
Create a line for

New
women over 35 years
old meet the needs of the
new generations

maintain its line of classic Brazilian shoes. Thus, it would not lose its essence.

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Should you expand your market to include older
women?

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o As can be seen in the ansoff matrix older women are 40% of shoe sales, this percentage of women are loyal to the
brand, but in order to keep them the sales focus should not be changed for women 18-35 as the brand makes them feel
that they are still young.
Should MC expand its position to be a
Key Key
Value propositions
Customer Customer
partners activities relations segments
global fashion brand, rather than a 100% Women
Brazilian artisan? Nordstrom Brazilian between 18-35
Productsleather years old
Current New
Yes, MC should expand its global position 40 % of purchases are 60% Advice
of at the
purchases are
At the
forefront of
since the new generations are more focused on from women over

Current
Saks time of
35 made by young women fashion
fashion than on the brand, it should consider purchase True to fashion
years of age who are only looking for
manufacturing more alternatives, or if it wants

Markets
Floroda Billing
fashion.
Create more shoe
to maintain its focus on being a Brazilian style Zappos Marketing
and handcrafted company, it should create a options that
Create a line for

New
Key resources Shoe manufacturing of Channels
new line or new brand to meet the needs of the women over 35 years
meet the needs of thevarious styles
changing market, thus expanding its sales and old
new generations Offline. Physical stores with
covering more global market. Qualified personnel
retailers

Experienced designers
from different parts of the Online. Virtual stores
world
Strategic outsourcing
alliances
Excellent every supply

Cost structure Source of income

Retail price is from 35$ to 300$. Cash, checks, credit cards, electronic

Wholesale price is 32$.

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