Question

1. You have been appointed as a Strategy Consultant to a Swiss shoe making brand namely “Bally” wanting to enter India. Which one of Porter’s Generic Strategies would you choose to be operational in India & explain the reasons in detail behind your choice of strategy? Once the strategy has been chosen, explain the categories of customers you would target?

Answer 1

Bally is a luxury shoe brand and hence when wanting to enter India the Porter’s generic strategy that it should choose is the “differentiation focus” strategy. Differentiation focus means that the shoe company will pursue a path of strategic differentiation within a focused market. As the shoe brand is a luxury brand it will cater to a niche market only and it will have to create uniquely desirable products to distinguish its shoes from other luxury offerings in India. Several other luxury players sells their brand of shoes in India and so the generic strategy of differentiation focus will help Bally to make steady inroads in India and establish itself in the market.

The categories of customers that will be targeted by Bally are:

• Strivers – This category of customers see use of luxury products as an evidence of success
• Trendsetters - This category of customers use luxury products to set themselves apart
• Aesthetes - This category of customers perceive luxury to be the highest point of design
• Comfort first - This category of customers see use of luxury products as a meaningful way of life