STRATEGIC MANAGMENT MGT502

ASSIGNMENT ON

SUBMITTED TO MR. M. A. JAN

PARTICIPANTS
MIRZA ASIM BAIG (BME-1010) HAMZA RAFIQ (BEM-1052) MEHRAB ALI (BME-929) HAFIZ FAROOQ (BME-865) MUHAMMAD SHAYAN (BME-927)

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TABLE OF CONTENT

LETTER OF TRANSMITTAL _______________________________________ 3 ACKNOWLEDGEMENT ___________________________________________ 4 ABOUT US _______ _______________________________________________ 5 BRIEF HISTORY___________________________________________________ 7 PRODUCTS ASSORTMENT_________________________________________ 8 MISSION STATEMENT ____________________________________________ 9 OBJECTIVES ____________________________________________________ 10 STRATEGIES ___________________________________________________ DEVELOPING MISSION STATEMENT _____________________________ COMPETITORS _________________________________________________ COMPETATIVE LANDSCAPE ____________________________________ STRENGTH & WEAKNESSES ____________________________________ OPPORTUNATIES & THREATS __________________________________ IFE MATRIX __________________________________________________ EFE MATRIX _________________________________________________ TOWS _______________________________________________________ SPACE MATRIX ______________________________________________ IE MATRIX ___________________________________________________ GRAND STRATEGY ___________________________________________ QSPM ________________________________________________________ LONG TERM STRATEGY _____________________________________ CONCLUSION _________________________________________________ 11 12 13 14 16 17 18 19 20 22 23 24 25 27 28

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LETTER OF TRANSMITTAL
Tuesday, July 26, 2011

Mr. M. A. Jan Strategic Management BIZTEK, Karachi.

Respected Sir,

Here is the assignment you have assigned us in the course of Strategic Management. This assignment is based on to the information about Samsonite. This report also gives detailed information regarding the Samsonite working strategy as well as SWOT and PEST analysis.

We have tried our level best to it as your requirement.

Sincerely,

All Group Members

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ACKNOWLEDGEMENT

Tuesday, July 26, 2011

Dear Reader:

First of all we would like to thank Allah Almighty for guiding us in making this assignment in the accomplishment of the term assignment we are grateful to our parents, We would like to take this opportunity to thank our instructor Mr. M. A. Jan who made this assignment possible by providing his unconditional guidance and cooperation throughout the semester.

Once again we are thankful and look forward for such support in future.

Sincerely,

All Group Members

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ABOUT US
The Samsonite brand was born in 1910 when founder Jesse Shwayder began producing luggage for turn-of-the-century travelers a small and affluent group who appreciated the Company's unique, durable and finely crafted products. As travel evolved into a mainstream activity, Samsonite's product mix evolved with it, growing to encompass a diverse range of items for a host of travel needs. Along the way, Samsonite continued to anticipate and fulfill the changing requirements of travelers by introducing a string of "firsts", including the first matching luggage sets, the first lightweight luggage and the first wheeled suitcases, to name just a few. Samsonite's ability to perceive and adapt to the changing needs of travelers has made the brand a leading authority for people on the move, throughout the years. From the roaring twenties, the Depression era, WWII, the rise of the jet age, the exciting sixties and beyond, Samsonite has continued to transform the travel industry through its rich brand history. Today, the global travel industry continues to grow, and Samsonite continues to lead through the continuous introduction of innovative technologies, materials and design concepts, which we market through some of the most recognized brand names in the world. And while each of our brands is specifically focused on its own clearly defined customer group, every product we create continues to embody the same values on which Samsonite was founded high quality, fine craftsmanship, exceptional reliability and enduring style. Samsonite is one of the world's largest manufacturers and distributors of luggage and markets luggage, casual bags, business cases and travel-related products under brands such as SAMSONITE, AMERICAN TOURISTER, LARK, HEDGREN, LACOSTE and SAMSONITE black label.

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BREIF HISTORY
Samsonite is the leading manufacturer of luggage in the world and the top seller of luggage in the United States, Europe, and Japan. In addition to its world-renowned Samsonite label, the company also markets the popular American Tourister brand. Under those names, Samsonite offers a full line of luggage, including softside and hardside suitcases, garment bags, casual bags, business cases, and other travel bags and accessories. Samsonite changed ownership several times during the 1980s and early 1990s before regaining its independence in 1995. Samsonite owes its start to Colorado native Jesse Shwayder. After growing up in the American West during the late 1800s, Shwayder was working in New York as a salesman for the Seward Trunk and Bag Company by his mid-20s. He was making a lot of money, but he missed Colorado and longed to pursue his dream of starting his own business. Thus, Shwayder quit his job when he was 28 and moved back to Denver. Shortly thereafter, on March 10, 1910, he founded the Shwayder Trunk Manufacturing Company with his life's savings of $3,500. With a work force of ten men, Shwayder began manufacturing what were known as "suitcases" in a 50 125 foot room that he had rented in downtown Denver. The management philosophy he adopted to guide the firm from day one, according to company annals, was the Golden Rule (do unto others ... ), to which Shwayder adhered tenaciously.

1910
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PRODUCT ASSORTMENT

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MISSION STATEMENT

Providing Solutions to the Traveling World Samsonite is the world's luggage leader. A strong brand image, a wide range of products, and a unique global manufacturing and distribution network, all contribute to the remarkable industry stature of Samsonite. The leadership role held by Samsonite is embedded in nearly ninety years of providing superior products and service. Alongside lengthy experience, the quality and strength that characterize every aspect of the Samsonite business have created a heritage success. Remembering past triumphs but always looking ahead, Samsonite maintains a global vision - a vision that will propel the company into the new millennium. The future is a world of travel, of abundant mobility. The number of travelers of all kinds will increase dramatically, as will the frequency of their journeys. Future mobility will know few geographical limits, and it will affect every area reached by transportation. In effect, the whole world population will become mobile. Samsonite is ready for this world-on-the-move. The company envisions a spectrum of travel products capable of providing a solution for every traveling need, for any moment of the day, for any place on earth. This solution is the essence of Worldproof, a concept that will become synonymous with Samsonite through the next millennium.

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SAMSONITE OBJECTIVES
To describe the different dimensions of a global manufacturing strategy To examine the elements of global supply-chain management To show how quality affects in depending economies To illustrate how supplier networks function To explain how inventory management is a key dimension of the global supply chain To present different alternatives for transporting products along the supply chain from suppliers to customers

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SAMSONITE STRATEGIES

Samsonite is pursuing several strategic initiatives designed to capitalise on our underlying business strengths, grow and diversify our revenue stream, improve our profitability and our cash flow generation and enhance the resiliency of our business. Key elements of our business development strategies include:

Introducing a stream of innovative and contemporary products into the market; Strengthening support behind our brand and product marketing and advertising; Expanding our retail distribution platform; Pursuing expansion opportunities in high-growth geographic markets; Exploiting new business opportunities; Continuing to improve operating efficiencies and cash flow generation.

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DEVELOPING MISSION STATEMENT

Our mission is to become leading manufacturer of luggage, business cases and travel supplies. Our goal is to offer our online customers a superior product selection, industry-competitive prices, fast delivery, and the highest level of personalized service. Providing confidence to our global customers online with innovative use of today's latest technology.

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COMPETITORS

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COMPETITIVE LANDSCAPE
Personal income and fashion trends drive demand for clothing. The profitability of individual companies depends heavily on effective merchandising and marketing. Large companies can offer wide selections of clothing and have advantages in purchasing, distribution, and marketing. Small stores can compete by offering unique merchandise, targeting a specific demographic, providing superior customer service, or serving a local market. The industry is labor-intensive: annual revenue per worker is about $145,000. Competition for the clothing store industry includes department stores, discount stores, and Internet and catalog retailers.

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SAMSONITE VS COMPETITORS

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TRENGTHS

Brand Heritage Durable Products Product Range Global Partners Competitive Prices

EAKNESSES

Only known for luggage Lacking user lifestyle products Marketed towards older generation Supply Chain Management Market Penetration

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PPORTUNITIES

Expand Branding beyond luggage Diversify market strategy for larger audience Next generation of business travel Expended assortment into other industries

HREATS

New Competitors Change in fashion industry Global Economic situation Technology advancement Main target audience extraction from business realm

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IFE Matrix (Internal Factor Evaluation)

Weight Rating Weighted Score

TRENGTHS

Brand Heritage Durable Products Product Range Global Partners Competitive Prices TOTAL

0.13 0.09 0.07 0.05 0.07

2 3 4 3 2

0.26 0.27 0.28 0.15 0.14 1.1

Weight

Rating

Weighted Score

EAKNESSES

Only known for luggage Lacking user lifestyle products Marketed towards older generation Supply Chain Management Market Penetration
Total

0.09 0.15 0.08 0.18 0.09 1.00

1 2 2 2 3

0.09 0.3 0.16 0.36 0.27 1.18

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EFE Matrix (External Factor Evaluation)

Weight Rating

Weighted Score

PPORTUNITIES

Expand Branding beyond luggage Diversify market strategy for larger audience Next generation of business travel Expended assortment into other industries

0.11 0.08

3 2

0.33 0.16

0.09 0.07

2 2

0.18 0.14

TOTAL

0.81

Weight

Rating

Weighted Score

HREATS

New Competitors Change in fashion industry Global Economic situation Technology advancement Main target audience extraction from business realm
Total

0.15 0.09 0.13 0.15 0.13

2 3 3 2 4

0.3 0.27 0.39 0.3 0.52

1.00

1.78

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TOWS MATRIX STRENGTH S

1. Brand Heritage 2. Durable Products 3. Product Range 4. Global Partners 5. Competitive Prices

WEAKNESSES W
1. Only known for luggage 2. Lacking user lifestyle products 3. Marketed towards older generation 4. Supply Chain Management 5. Market Penetration

OPPORTUNITIES O
1. Expand Branding beyond luggage 2. Diversify market strategy for larger audience 3. Next generation of business travel 4. Expended assortment into other industries

SO
- Still there is a big gap in teen products (s1,o1) - Global partners should give incentives on sales (s4,o2) - Products range should be extended (s3,o4)

WO
- Should expand product range(w1,o1) -Expand products for teenagers (W2,O2) - Should enter into ladies handbags market(W1,O 1)

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THREATS T
1. New Competitors 2. Change in fashion industry 3. Global Economic situation 4. Technology advancement 5. Main target audience extraction from business realm

ST
- Should modify according to changing industry(S1,T1) - Prices should be reduce (s5, T3) -Use technology for product improvement (S3,T4

WT
- Compete new competitors with product range(W1,T1) - New market segments should discover.(S4,T5)

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SAMSONITE SPACE MATRIX

Competitive (CA) Product Quality Market share
X

-1 -1 -3 -2 -1.75 Total Axis X score 3.00

Brand & Image Product life style Average

Industry (IS) Barriers to entry Growth potential Access to financing Consolidation Average

6 4 4 5 4.75

Financial (FS) ROA Leverage Liquidity Cash Flow Average

5 4 6 5 5 Total Axis Y score 2.75

Environmental (ES) Inflation Technology Demand Elasticity Texation Average

-2 -1 -2 -4 -2.25

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SAMSONITE
Internal-External Matrix (IE)

The IFE Total Weighted Scores

Strong
Grow and Build

Average 2.0-2.99

Weak 1.0-1.99
Hold and

The EFE Total Weighted

3-4

High 3-4 Medium

I
2.0-2.99 Low 1.0-1.99

II

III

IV

VI

VII

VIII

IX
Harvest or

Our Total socre of EFE is 2.59 and IFE is 2.28, average is 2.44 means that Samsonite is on average medium position.

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Grand Strategy Matrix

Right now Samsonite is in medium position. After constructing EFE, IFE and SPACE matrix we found that Samsonite is not standing in very good nor in very bad position. So the blow strategies can be implement for further development.

QUARDANT II Market development Market penetration Product development Horizontal integration Divestiture

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QSPM

Key Factor Opportunities

1. Expand Branding beyond luggage 2. Diversify market strategy for larger audience 3. Next generation of business travel 4. Expended assortment into other industries

Weight

Strategy 1

Strategy 2

Threats
1. New Competitors 2. Change in fashion industry 3. Global Economic situation 4. Technology advancement 5. Main target audience extraction from business realm

1.00 Strength 1. Brand Heritage 2. Durable Products 3. Product Range 4. Global Partners 5. Competitive Prices Weaknesses
1. Only known for luggage 2. Lacking user lifestyle products WWW.SAMSONITE.COM Page 25

3. Marketed towards older generation 4. Supply Chain Management 5. Market Penetration

1.00

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Long Terms Strategy

This year 73m passengers will snap up Ryanairs guaranteed lowest fares. Over 50m of these passengers will save even more money by travelling without checked-in bags while availing of Ryanairs generous 10kg FREE hand baggage allowance. To encourage more passengers to switch to carry-on bags Ryanair and Samsonite have designed a quality, durable, lightweight carry-on bag which (when properly packed*) complies with Ryanairs approved carry-on bag dimensions. Ryanairs approved Samsonite carry-on bag is available for just 79/69 which includes free delivery anywhere in Europe exclusively at www.ryanair.com. Ryanairs Stephen McNamara said, This year 73m passengers will travel on Ryanairs guaranteed lowest fares with over 50m of them travelling without checked in bags. Ryanair encourages all passengers to travel with just one piece of carry-on baggage and to ensure they can get the maximum benefit of our generous, FREE 10KG carry-on baggage allowance we have developed a lightweight, durable, top quality carry-on bag with Samsonite. At just 79/69 including free delivery, this is a quality product at a great price.

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CONCLUSION

The primary goal of this report is to identify action initiatives that make up the Action Agenda for a Samsonite . This formal report on SAMSONITE provided a great field of knowledge to us. It tells everyone who reads this report. We possess full consideration about the report. Being a human there may be some mistakes which should be considered as human errors. So far errors and omissions are accepted.

Regards, All Group Members

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