Giant Leap (Team B) is the corporate team consisting of Sharon Gilmore-Barton and Kirk Miller. Our team finished second out of five teams in the Business Strategy Game conducted during the Spring I 2009 Strategic Management course. Our company strategic vision statement states: “Be the world’s premier provider of high performance footwear at an affordable price and become the footwear choice of world-class athletes and performance-minded customers.
To concentrate our efforts not only on our customers, but also on our shareholders with solid market share, consistent growth, and genuine value. This strategic vision was incorporated along with a change in business strategy during year 15 of the game. Prior to this time Giant Leap did not have a sound corporate strategy. Our company was attempting to compete directly with Team E, the effective corporate leader after year 12 of the game. This was not a very effective strategy due to the fact that our company was not pursuing specific market share or position; we were mainly attempting to match what Team E was doing without actually analyzing how they were doing it.
Our current business strategy started during year 15 of the game, when, in year 14, our ratings had reached their lowest point in virtually every category and we realized that a radical shift in strategy had to be undertaken. After analysis of the four major markets, we came to the conclusion that there was ample business opportunity for a high-end (8-9 Star) quality athletic shoe since none of the other companies were pursuing that portion of the market.
We also wanted to restrain our model availability to 200-250 to position our products firmly in the high quality differentiation niche market, and in order to play on our strength of low reject rates that can be realized with smaller model availability. By year 16 positive gains were shown in every category. Net Revenues increased by $92 million, Earnings Per Share increased by $2. 39, Return on Equity increased by 11. 4% and stock price increased from it’s low of $7. 17 per share to $37. 25 per share.
All of these ratings have shown a steady increase in each successive year except for year 19, when Giant Leap reopened a North American production facility to offset the increase in production costs and trade tariffs imposed by the Asian and Latin markets. Our company plans to continue its strategy of offering high-end athletic shoes for very a very competitive price for the foreseeable future, however if market conditions warrant a change in strategy, we would take corrective action as soon as possible.
This game experience has taught us the need to constantly review position and practices in order to continuously improve them. It has also done an excellent job of demonstrating how all of the myriad of decisions that must be made in the course of running a modern global business are interconnected. Even the smallest of decisions in one portion of the company can affect all parts of business operations. Because of this, communication between corporate partners was vital to ensure the correct decisions were input.