Columbia unit of measure. A discount, is just

Published by admin on

Columbia
Sportswear Company is a leading pioneer in the global clothing, footwear, accessories
and equipment markets that specials in creating a wide assortment of top notch products
that are meant for outdoor use. Columbia Sportswear needs to expand product
exposure and increase direct customers access to their products. They also need
to maintain their current profitable, yet competitive, retailer relationships. So
Columbia needs to address several key problems faced by the company like
seasonal fluctuations resulting in unpredictable cash flows, protection of
their key intellectual property and technology, undeveloped distribution
channels, and limiting the impact of commodity fluctuations.

There are some alternative ways or strategies to overcome the
problems faced by Columbia Sportswear. Firstly, the best way to manage seasonal
fluctuations, and maintain positive cash flows is to build alternative income
streams. Columbia being a seasonal business so they have to create a strategic
plan into action and focus on product development, to help level out any
seasonal dips. Although it may appear
like a diversion from the core business, set up extra revenue sources to
counteract the off-season. Columbia shouldn’t let attention to the alternative
stream overtake a focus on the primary core business. To propel the business
forward it’s important to expand Columbia’s existing customer reach, and
selling online and looking to enter international markets is a popular option.
Targeting new customers both nationally and internationally could boost the
company’s turnover and grow the business as a whole.

 

 

Columbia also can give discount for seasonal time so it can
increase the sales and maintain the positive cash flow. There are two primary sort
of discounts a retailer might take, promotional discounts during the season,
and clearance markdowns as the season winds down. Planning these discounts runs
as an inseparable unit with arranging sales and inventories in the event that the
company utilizing retail an incentive as our unit of measure. A discount, is
just like a sale, reduce the retail value of Columbia’s inventory on hand. Planning
clearance markdowns are particularly critical to protecting gross margins, and
cash flow. If Columbia plan the date of the first seasonal markdown before the
season even begins, they can plan the stock that they need to have available by
then, and thus their markdown percentage.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Secondly, Columbia should implemented a plan to prevent
companies from stealing their intellectual property by obtaining patents. After
the company receive patent for the business, if any other companies copy or try
to steal the invention by making, using, selling the Columbia’s intellectual
property is considered patent infringement by Patent and Trade Office (PTO). If
the patent is infringed, Columbia can sue the offending party or company in
federal district court. These will stop infringer and prevent further losses
and Columbia can request the district court to replace the damages.

Columbia need to educate the employee about the awareness of
intellectual property. So, Columbia management need to add data protection to
all internal documents, including manuals and employment agreements. Furthermore,
train the employee on company policies regarding the use of confidential data.
It helps to perform general security awareness training and invite the
companies’ contractors, vendors and accomplices to participate, as they should
be subject to the data protection policies, as well.

 

Thirdly, Columbia facing problem in maintaining profitability
in a high competitive market. Columbia can prevent this problem and increase
the profitability and the growth of company by using four key areas that can
help drive profitability. These are reducing costs, increasing turnover, and
increasing productivity. Most businesses can discover some wastage to decrease,
it’s important to not cut costs at the expense of the quality of their products
and services. An effective way to
find the real cost of specific business activities is by using activity-based
costing. Activity-based costing demonstrate the company on  how much it costs to carry out a specific
business function by attributing proportions of all the costs such as salaries,
raw materials.

Then, Columbia Sportswear need to review the products pricing
regularly. Changes in the marketplace may mean that the company can raise the
prices without risking sales. However, it’s wise to test any price rises before
make them permanent. One of the most obvious routes to increasing Columbia
Sportswear’s profitability is to buy more effectively. It makes sense if the
supplier regularly supply and see if can buy the same raw materials more
cheaply and efficiently. However, try to ensure that they maintain quality at
the same time.

Columbia can expand their business market. Moving into new
market areas can transform a business and, handled correctly, can significantly
increase Columbia Sportswear’s profitability. Before you start, carefully research the potential
opportunity. This can provide new revenue at minimal cost and is ideal for
boosting profit.

In a nutshell, Columbia Sportswear should implement the
solution given to increase their competency in the market. So they can easily
can compete with bigger firm like Nike in the market and also can make huge
different in the market by obtain customer loyalty. This will directly increase
their revenue and the company will recognized in globally.

Categories: Management

x

Hi!
I'm Iren!

Would you like to get a custom essay? How about receiving a customized one?

Check it out