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Copy of Sher-wood Case

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Daniel Chang

on 22 November 2013

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Transcript of Copy of Sher-wood Case

Sher-wood Case
Competitors & Strategies
Asian-Pacific Economic Cooperation forum
Lax enforcement of piracy
No agreed upon solution yet
Danger - IP theft
Hockey sticks are a luxury purchase

Hockey to Canada = Baseball to America
Danger - Reputation
'Tunnel Vision'
Executive mindset
Was a leading manufacturer of ice hockey equipment
Unable to keep up with updated composite sticks
Sher-Wood Inc.
Acquired and consolidated factories
Created new products and up to date modeling
Issue at Hand
Sher-Wood Inc. wants to boost hockey stick sales
Produce better quality, retail price and margin for retailers
Decides on outsourcing manufacturing to China
Layoffs create worried employees and decrease work quality
Decrease in loyalty
Less control over manufacturing plant in China
time lag
real time control
detect poor quality control
"One of these things is not like the other..."
Core Strategy
Apples and Oranges
One size does not fit all
Sherwood Drolet, Ltd.
Implications of Outsourcing
Demand in the Arena
Global hockey equipment sales has shown signs of maturity growing at 1% - 2% per year
Sher-wood's external pursuits do not reflect its internal decisions
Previous success in outsourcing
Registered hockey players in Canada are expected to shrink by 5% over the next five years
Unlike other sports that just require a ball or bat, outfitting a recreational hockey player cost $600.00
Buyers purchases product in low volume
Consumers aren't price sensitive
Three major companies controlling 80 percent of the market (Bauer, Reebok, Easton)
Unique Products
Endorsements with professional players
Overall name brand
Specialized in other sports as well
Quality over cost
The Customer
Customization: time and costs
Shifts in industries
~0%-15% savings per unit
Different target market
Confusing and Contradictory
Product's life cycle - Junior-Senior players
Target market (low) - Executive's goals
Long-standing partnership
Strong R&D department
Sher-wood's comparing its past decisions like
Cost Leadership
Huge volumes...lack personalization
Negative Implication of Outsourcing
Risk of intellectual property theft
Poor Strategy Alignment
No viable substitutes
Daniel Chang
Austin Alvermann
Stephanie Gosnell
Scott Vega
Danny Jung
Full transcript