HABI Footwear: A Written Case Analysis
So Chan, Katrina
Table of Contents
I. INTRODUCTION 3
Vision and Mission 3
II. STRATEGIES 3
Market Development 3
Product Development 4
First-Mover and Outsourcing 4
III. EXTERNAL OPPORTUNITIES AND THREATS 4
Competitive Profile Matrix 4
External Factor Evaluation Matrix 5
IV. INTERNAL STRENGTHS AND WEAKNESSES 6
Internal Factor Evaluation Matrix 6
V. STRATEGY MATRIXES 8
Internal-External (IE) Matrix 8
Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix 8
Space Matrix 11
Quantitative Strategic Planning Matrix 13
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The mission of HABI Footwear is to create an enterprise promoting social involvement, Pinoy pride and responsible fashion.
As a social enterprise, HABI does not only aim for business growth but also aspires to contribute positively in providing livelihood opportunities to the mothers in the communities, further expanding their skills by various trainings, reducing solid waste in the environment by using upcycled scrap cloth in its products, and promoting a change in lifestyle through responsible fashion through social awareness and environmental concern.
Besides getting sales (100 pairs/month) here in the local industry, they have recently exported their products internationally. In providing quality-made shoes, they were able to tap in the United States and United Kingdom. Ironically, these countries only order in small bulks because HABI does not meet their standards of export quality just yet. This strategy sprung forth from the transition from Kawan ni Sto. Nino to the Payatas community. They observed that the latter was more skillful in the arts of weaving and therefore produced outputs with better quality.
Entering the apparel and footwear market or the fashion industry as a whole in general, requires product development as one of their main strategies. Market trend always varies from time to time. It is not normal for one that belongs to the mentioned industry to produce completely standardized products, e.g. no improvement or change in design. This is seen through how HABI has been pursuing its operations. Currently, they have seven collections namely blithe, chic, classic, featured, kids, kiss, and men; each is distinct from one another and has its own line of variances in style, design, and color.
It was mentioned in the case that the company incorporated itself under Sosyal Revolution, Inc. in 2012 “to legitimize the business and to fulfill the requirement for that year’s Business in Development (BiD) Network Challenge.” No further data was extracted from the available mediums, i.e. the Internet and online business industry analysis sites, regarding the history or other causes for this decision.
First-Mover and Outsourcing
Although Rags2Riches is the first-mover in the rag-weaving industry, i.e. production of bags, HABI is the prime mover in manufacturing shoes made out of rags. Also, they outsource their manufacturing of shoes to factories namely Red Anura and Roseville.
EXTERNAL OPPORTUNITIES AND THREATS
Competitive Profile Matrix
The table on the previous page shows the Competitive Profile Matrix (CPM) of HABI’s major competitors’ strengths and weaknesses in relation to HABIs strategic position. The CPM shows that product design is prioritized relative to other success factors. It has the highest rating of 0.18, which means that the overall design of the product is the main factor that could determine the success of...