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FOOT LOCKER RETAIL COMPANY

Company Overview

Foot Locker company is based in Midtown Manhattan in New York City although It has branches in about 29 countries in the world. It is a company that has specialized in the footwear and sportswear. The first idea of Foot Locker was founded back in 1974 but it came into realization as an independent company in the year 1988. The mother of the Foot Locker Company is believed to be Woolworth Company because it occupies stores that were formerly occupied by Woolworth. The eponymous Foot locker chain that has embraced outfits of athletics is the line of operation of the foot locker retail company (Tippett, 2018). This company also sells divisions of Footaction, champ sports and house of hoops. Research in the company’s fillings have shown that of the year 2017, foot locker had over 3400 mall based stores active in Asia, Europe and Canada as per the SEC’s statistics. Nike is the sole producer of the Foot locker products.

HISTORY

F.W. Woolworth Company bought Kinney Shoe Corporation in the year 1963 and put her operations to be subsidiary. In the mid 1960’s Kinney shoe specialized in the stores of shoes. This shoe stores included: Footlocker of the year 1974, Susie casuals of 1968, and stylco of the year 1967. Foot Locker retail company was first launched in the Puente Hills Mall in California and as we write this paper, the mall is still operational. Woolworth on the other side diversified in other stores in the early 1980’s. This specialty stores included: RX Place, Northern Reflections, and Champ sports. By the end of the 1980’s, the company had sought strategies aggressively to have multiple stores that were operational within shopping malls (Tippett, 2018). The reason for enclosing shopping malls was to diversify the ideas and if one idea fails at one mall, an alternative idea will be sought. It was the intention of Woolworth that it has 10 stores in the each of the 28 countries great shopping malls. Unfortunately, their intention failed because Woolworth failed to develop successful specialty formats of the stores.

Because of the failed intention, Woolworth incorporated Woolworth Corporation of the New York state in the year 1988. The reason why Woolworth Corporation was incorporated was because it was targeted to run the operations of the Foot Lock stores and its chains. This move was initiated by changing the name of the Champs Sports and calling it Woolworth Athletic Group. At around the 1997, the flagship store of the Woolworth Company declined. This led to the closure of the then stores that were operating in the United States of America (Tippett, 2018). The company never gave up and it sought the line of athletic business where Eastbay was the option back in 1997. Eastbay grew to be the largest catalog retailer not only in the United States of America, but also to the as a regional store front that offered both athletic fitters and sporting goods retail. Warl-Mart came very fast and in no time it outdid Woolworth in the Dow Jones Average. Because of stiff competition from Warl-mart, Woolworth remained strong as the only company of the foot locker and for this reason, it changed the name to Venator Group, IC. At the end of the 1990’s, Foot Locker was ranked the best in Kinney Shoe corp sales. The Kinney traditional shoe retailer was however declining. The shuttering of the footquaters stores and remnants of the Kinney shoe were announced in September the year 1998.

CURRENT MARKET

The democratic manager who pointed out the reason why Woolworth failed in her operations was awarded $340000. He noted that more opportunities and promotions were only reserved for the white people and the black people were discriminated. Because foot locker was the best line of specialization to Venator/ Woolworth, Venator realized the importance of renaming itself as Footlocker again in November 2001 (Tippett, 2018). When the name was changed to Foot locker, the company registered a significant profit of about 20 percent in just the first quarter of the 2001 financial year.

This motivated the company and by the year 2004, it had acquired a Footaction USA brand that saw it brand about 300 stores that came from Footstar that was rated $ 350 million. This led to Foot locker buy 350 Footaction from the Footstar that was ailing by that time with only $ 170 million so that Foot Locker could expand and operate in the urban centers.

Having established in the town centers and with the retirement of Tin Finn, Nick Grayson took over the mantle from Tin Finn and was the then president of the chief executive officer of the Foot Locker (Tippett, 2018). SchoolPax and Foot Locker joined hands back in the year 2007 and together, they launched the Foot Locker School Rewards Program. This was aimed at providing charitable donations to the schools that shopped and signed at the Foot locker having the school code and their custom-coded key tag.

DoSomething.org was joined by Foot Locker back in the 2011 for the program they called Foot Scholar Athletes program. This program was championed to honor the high school students who apart from performing well in class, they were able to shine in the field of Athletics. By the start of the year 2012, Foot locker celebrated the first century since it took the mantle from its predecessor the then Woolworth Company, Isc. This put the company on a world map and by the year 2013, Foot Locker acquired the best German’s retailers runners point Group.

COMPANY SUMMARY

Foot Locker company has undergone a lot of changes right from the time the idea of the company was born. The company has managed to stand the test of time because of its diversity. The company is flexible and majored in the line of sportswear (Andrews, 2013).The reason why the company is flourishing now is because it has moved beyond just making profit and it is now working in partnership to give back to the society what belongs to the society.

SWOT ANALYSIS

Strengths.

Qualities and asset abilities have been distinguished for Foot Locker, Inc. These qualities incorporate its accomplished and very much prepared senior administration group, its solid monetary record, its present framework, lastly, its solid image picture. An investigation of Foot Locker, Inc's. Qualities will start with its accomplished and very much prepared senior administration group. A standout amongst the most essential speculations for organizations today is in human capital. As of late, Matthew Serra characterized Foot Locker, Inc's. Administration group as a very much prepared and experienced resource, deliberately essential in accomplishing the future corporate vision

This vital asset can be used in out-strategizing Foot Locker, Inc's opposition while accomplishing corporate objectives and goals. A solid monetary record speaks to the second asset capacity for Foot Locker, Inc. As of January, 2009, the organization's monetary record recorded around $1,754 million in current resources and just $416 million in current liabilities. This speaks to a present proportion of 4.22, implying that Foot Locker, Inc. can bear to pay its present liabilities four times finished.

Moreover, the organization has possessed the capacity to lessen its stock by more than 13% amid the 2008 financial year (In Pederson, 2014). Matthew Serra trusts these variables, alongside the organization's solid obligation to-value proportion, will outfit Foot Locker, Inc, "with the budgetary adaptability to execute our long haul marketable strategies adequately and to move deliberately to extend our business reach". Foot Locker, Inc's. Third quality is its organization foundation, which incorporates its numerous physical stores, its dispersion focuses, and its Internet and index appropriation capacities. Matthew Serra recognized this as a genuine preferred standpoint, intensely, in further separating its specialty units from their rivals. Utilizing this framework, Foot Locker, Inc. can erect a hindrance to section in its industry, and all the more viably contend with current adversaries.

Weaknesses.

Auxiliary research has distinguished noteworthy shortcomings. A solid dependence on shopping center activity to drive deals, and low stock swings with respect to its memorable normal. Of these two shortcomings, Foot Locker, Inc's. Solid dependence on shopping center activity is depicted first. Foot Locker, Inc's. Solid dependence on shopping center activity displays an extensive hazard on future productivity. Matthew Serra distinguished this shortcoming when he expressed, "Our deals … Foot Locker, Inc. 28 are needy partially on a high volume of shopping center activity

OPPORTUNITIES.

A couple of current open doors exist for Foot Locker, Inc. These open doors incorporate the capacity to arrange bring down inhabitance rates with conventional shopping centers, worldwide development and extension, the development of way of life focuses, and Foot Locker, Inc. 29 at long last, the acknowledgment of cutting edge contributions by the purchaser advertise.

Threats

Three dangers have been perceived as jeopardizing Foot Locker, Inc's. Future benefit. These dangers incorporate the effect from the current monetary pattern, the low section obstructions related with this retail industry, lastly, the developing probability of forward mix by providers. The effect from the current monetary pattern will be depicted first.

PESTLE

Political factors : Footwear operated in different countries and for this reason it has to analyze the legal frameworks, property protection and wage legislation for each country it operates in.

Economic factors: the stability of the individual’s country economy, stability of the currency and quality of the infrastructure should be key in her operations.

Social factors: foot locker should consider individual country’s demographics, leisure interests and culture for it affects market of her products.

Technological factors: the rate of technology diffusion, cost of infrastructure and impacts of value chain structure should be considered first.

Environmental factors: this factors include: climate change, weather and laws governing environmental pollution of individual country.

Legal factors: last but not least, legal factors of copyrights and patents, data protection and Anti-trust laws should be considered in each country before Foot Locker works in that country.

Strategic Summary

It is important that in both the SWOT and PESTLE analysis, the foot locker company have to analyze the situation of the market before engaging in and a thorough analysis conducted to determine the factors. The only difference is that in PESTLE is external and SWOT is internal in terms of analysis.

References

1. In Pederson, J. P. (2014). International directory of company histories: Volume 152.

2. Shimp, T. A., & Andrews, J. C. (2013). Advertising, promotion, and other aspects of integrated marketing communications. Mason, Ohio: South-Western Cengage Learning.

3. Tippett, E. C. (September 06, 2018). How Employers Profit from Digital Wage Theft Under the FLSA. American Business Law Journal, 55, 2, 315-401