PAEZ Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

PAEZ Case Solution

Background

“PAEZ” is a casual summer footwear company that was founded in Argentina. The company sold variety of shoes through wholesale distribution globally. The company is facing immense competition from different competitors specially its first mover established competitor i.e. TOMS(Jill Avery, 2015).

Situational Analysis

PAEZ 5C Network

Company

PAEZ Company related factors are as given below;

Significant investment in research and development
Strong innovation and culture processes
Large scale of production
PAEZSWOT analysis (see Appendix 1)

Customers

High and low end market segment
Market segment includes families with children’s
works in the low-association item classification
high purchase frequency

Competitors

The porter’s five forces model is used to analyze the PAEZ competitors analysis (see Appendix 2)

Collaborators

The collaboration of Paez with different collaborators helps to improve its products offering and advancement.

Context

One significant tool to comprehend PAEZ context is the PESTLE investigation. (see Appendix 3)

Question-1(a)

Out of five different branding positions presented by PAEZ, the best strategy recommended for the company is “combination of authentic Argentina alpargata and Argentina lifestyle”. This strategy is called “authentic Argentina”. This strategy proposed the overall culture of Argentine.

Criteria for the Strategy Selection

The standards we use to assess and access the different elective choices are "3C model”. This model gives the complete data of the three significant powers that influences the positioning of brand. Subsequently, the strategy that is suggested evaluating the model is known as genuine Argentine. (Appendix 4 shows the 3C model of PAEZ)

Strategy Details

The PAEZ is currently offering the best fashionable and good quality shoes in minimum affordable price for its customer. But when it comes to their main competitor that is “TOMS” he also provides the similar products offering with high market share.

This is why the PAEZ is recommended to use “combination of authentic Argentina alpargata and Argentina lifestyle” strategy. This methodology of giving alpargata shoes from a genuine Argentina organization has the major cutthroat advantages for the PAEZ such that TOMS can't continue. Since PAEZ is a purely “Argentine brand”, so there is no better company that represent Argentine’ customs, tradition, culture and craftsmanship other than PAEZ. This help the Argentina to gain the coolness of brand image to its customers.

Due to all these reasons mentioned above, the recommended “positioning strategy” will create the maximum market “white space” for the PAEZ. It is described by the Potter that “taste, status and coolness” are the central status hierarchy in contemporary metropolitan culture. Therefore, it is recommended to PAEZ to implement this strategy through proper market selection and expansion in order to gain high market share.

Question-1 (b)

The recommended strategy creates the great differentiation for the PAEZ since the Argentina way of life and culture makes the significant incentive for the PAEZ. It shows the enthusiastic and brilliant spirit of the country that PAEZ can claim and differentiate themselves from its competitors.

The company can position itself differentially in this market space because “Farrar, Straus and Giroux” customers are caught in mental rationale of replicating the utilization designs appropriations for status. The company can fulfil its customers demand and expectations by promoting the standard and cool pieces that shows the social culture of its country. This will help the PAEZ to differentiate itself from its competitors. Moreover, PAEZ needs to position "cool" and "true" decisively as they are driven more by buyers request and it subverts its believability.

Question-1 (c)

Market Segmentation

By analyzing the different market segments and their core properties, we can safely say that the PAEZ enter in the US market with high level of investment. There are two main advantages of entering the US market. Firstly the market of US are of fragmented nature. People there are likely more about the good quality style products rather than just brand names. This would create the great benefit for PAEZ if they enter the US market with their comfortable and stylish nature of products. Another main advantage is the “brand positioning”. The “authentic Argentina positioning strategy” attracts the US customers and creates the great value proposition.

Moreover, PAEZ should also enter the Asia and other market with preferably low market investment. This creates the great value proposition because the people in Asia have the most diverse needs and cultural backgrounds. Therefore, the high cultural roots of the PAEZ makes the great space in Asia. (See Appendix 5)

Product Strategy

To help the Authentic Argentine situating technique, social worth ought to be added to PAEZ's present items, concerning PAEZ's restricted assets. It is recommended that if the PAEZ enters the cultural handmade clothing as their secondary product line, so it would definitely help the company to manage high costs and increase the company’s R&D procedures. It is also recommend that PAEZ should continue to chip away the current need “alpargata shoes” as the fundamental income creating by offering of product. Moreover, firm should go into other product line, once the company achieve a specific toehold in US or other South America and Europe market.................

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PAEZ Harvard Case Solution & Analysis