Shoes for Moos Inc

Case Analysis: Shoes for Moos, INC.

1. Executive Summary

Jim Wells is an owner of Wells' Work and Casual Wear in Elmira, Ontario. His brother-in-law, Tom Byers, is a classifier working in the Holstein Association of Canada. Now Shoes for Moos is only a potential company built by Jim and Tom. The special shoes, combined with foot treatment, easy cleaning, durable and reusable, are inspired by local farmer's sick cow suffering from foot disease. Jim and his brother-in-law have around $25000 they could invest without affecting their current life. Now Jim wonders whether they would start this new venture.

2. Situation Analysis

The current environment in which Shoes for Moos find itself can be learned from a brief SWOT( strengths, weaknesses, opportunities, threats) analysis. Figure 1 shows the internal and external factors influencing the market opportunities for Shoes for Moos.

Figure 1 SWOT Analysis for Shoes for Moos

Internal Factors Strengths Weaknesses

Management Experienced family owned entrepreneurial management Jim and his brother-in-law can't focus on this venture because of their own jobs

Offerings Unique, high-quality, reasonable price products Two competitors: one provides lower-quality, cheaper products. The other were intended for clinical use, high price products

Marketing Potential identifiable distributor and promotion plan No distribution network; lack of experienced salesman

Manufacturing Sole manufacturer ensures excellent quality, good research and development capabilities and available manufacturing capacity Minimum amount for ordering-goods of 100 shoes

R&D Professional efforts to ensure improved quality and better product design Test process spent too much time and samples are not big enough

Finance No debt Limited capital investment of $25,000

Figure 1 SWOT Analysis for Shoes for Moos (continued)

External factors Opportunities Threats

Economic The market size is large The number of farms is declining; consumers evaluate this new brand

Competition Distinctive name and satisfied functions If success, easy entrance may attract more competitors

Consumer/Social The number of cows in the US and Canada is relatively large The farmers had their treatment solution and their reaction to this novelty product is uncontrollable

Technology Mature technology and tested by varying conditions No patent; competitors can duplicate

3. Market Analysis

Although the potential users of MOO shoes include owners of dairy, beef, show research and breeding cattle, Shoes for Moos' target market is predominantly dairy farm population. The number of cows in the US and Canada is relatively large. Statistics show that the total milk cows, cattle (including dairy cows) in Canada is 16,611,000. And there are 1.1 million milk cows in Canada and over 9.2 million in the United State. Studies have shown that when spring (March, April) and fall (October) come, the hoof disease typically intensifies and from 22,000 to 220,000 dairy cattle are infected in Canada.

Foot disease not only affects a cow's appetite but also results in a sharp decline of milk production by from 20 to 80 percent. More importantly, once cows are injected antibiotics, its milk production would not be allowed to sell at least three or four days. Alone with the cost of antibiotics, which range from $15 to 30 based on the type and amount used and the veterinarian service $50 per visit, the farmer will lose at least $72.5 even $110. Some foot problems are contagious which will cause enormous loss for farmers once spread. The worst situation is the sick cow has to be killed because of serious illness. If so, farmers will lose $3100 at least. Most commonly when farmers found their herd suffering from hoof problems, they tried their own home remedies firstly such as applying ointment. For serious cases, the foot will receive extensive care.

4. Competitors Analysis

There are now two products offered for sick cows with foot problems. One was a half shoe, which mainly target structural problems for cows rather than medical problems and was advertised through direct mail catalogues from the United States. Although its price of $ 21.80 is comparatively cheap, its disadvantage is obvious that the low height of this shoe would result in worse infection because of failure of stop moisture and dirt. The other competitor produces hydrotherapy boots which were primarily designed for horses and were intended strictly for clinical use. Moreover the cost of these hydrotherapy boots was so high that $400 per pair makes it impossible to spread in farmer's cows.

5. Plan of Action

If the decision is to sale the Shoes for Moo's then the price and promotion must be determined. There are two distribution methods:

1. Only Direct mail alternative

Advantages:

* The method is easy to operate because the Foundation for the Mentally Handicapped will be responsible for all of the shipping process. Shoes for MOOs will not have to carry any inventory or do any shipping