Innovation At Timberland: Thinking Outside The Shoe Box Case Analysis

Group – I, Section F

Astha Gupta (11DM-027) Gourab Gangopadhyay (11DM-040)

Jagadeesh Kommineni (11FN-044) Mavlankar Sanket (11FN-060) Pranav Iyer (11DM-104) Rachita Tiwari (11HR-022)

CASE ANALYSIS

I. Problem• What uniting mechanism can Timberland Company administer

to achieve the fullest potential of appropriate product design and process given the existing disparity between the In-line teams and Invention Factory?

II. Objectives

• a. To ensure that the manufactured product is to be positively responded by the consumers.

• b. To provide sufficient focus to ensure the best use of resources without restricting innovation.

• c. To guarantee that there is always the presence of balance with regards to fashion and functionality in all Timberland products.

• d. To resolve the lack of wholesale and interest of Invention Factory ideas as they are integrated to the mainstream of Timberland.

• e. To improve the relationship between Invention Factory and In-line teams.

SWOT Analysis

Strengths:• The company has a strong name and brand recognition, which

is critical.• In the retail industry most people recognize Timberland as

some type of shoe or outerwear clothes maker for outdoor work and activity.

SWOT Analysis

Strengths: (Contd..)• Timberland has the ability to argue for the quality of its

products. • Timberland has the ability to squeeze its operating costs for

more savings. This in turn frees up cash as less gross revenue is eaten up by expenses. Being able to produce cash during hard times allows Timberland to be strategically stronger with resources it can use to expand quickly when needed.

SWOT Analysis

Weaknesses:• Timberland relies on sales overseas in Europe and Asia. As the

strength of the U.S. dollars grows or weakens, this will affect international sales revenue. A strong dollar will decrease sales relative to the Euro or Asian currencies as consumers in those countries effectively buy less.

SWOT Analysis

Opportunities:• As other competitors suffer and fail because of a lack of sales

and finicky consumers, Timberland's sales due to strong reputation at worst have been flat. This opens up the ability to push for gaining market share as competitors fail.

SWOT Analysis

Threats:• Being in retail, Timberland will suffer as the economy suffers

since consumer will retrench and hold back on their discretionary spending.

• Costco, Wal-Mart and Target look far better for necessity clothing when one has to choose with less money. This economy-driven behavior, which Timberland cannot control, will be cyclical and eventually will go away.

Alternative Courses of Action

a. Allow Invention Factory to take charge of the creation of the idea of the product to the finished output as a separate business team from In-line teams.

• PROS: The problem then of Invention Factory products not fully integrating in mainstream Timberland will be resolved since they will have the passion and knowledge to sell the product well since they invented it in the first place.

Alternative Courses of Action

• CONS: Since Invention Factory products will not be integrated into the In-line teams, they will have to start from scratch and establish legal representations, organization structure, sales force, packaging that will be additional problems given that Timberland has an already existing establishment of this system within In-line.

Alternative Courses of Action

b. Taking people out of Invention Factory and putting them in In-line teams to manage integration.• PROS:

Complaints of In-line teams not being able to adapt or integrate the products because they have no knowledge behind its concept and structure will not be an issue anymore since selected Invention Factory individuals will be able to assist in its assimilation to mainstream Timberland better given that they have the acquired information behind the product’s design and saleability.

Alternative Courses of Action

• CONS: Invention Factory personnel are not adept at marketing and commercializing products since their forte is more on the innovation of new concepts and ideas not taking into consideration aesthetics of that particular concept which is the specialty of the In-line teams to begin with.

Alternative Courses of Action

c. Bring together the issues of consumers and wholesalers in line with the concept of the product to be put into the market. In case of disapproval by the other, make necessary product concept adjustments.• PROS:

Timberland’s latest products or ideas will be assessed by different people gathering a variety of opinions that will in turn assist the products integration to the market since the customers’ or wholesalers’ demands and preference are being taken into consideration.

Alternative Courses of Action

• CONS: This method will be more time consuming than that of the usual statistics gathering that is done by Timberland and variety of opinions necessarily demand a lot of adjustments losing the purpose of having Invention Factory create and conceptualized a new idea in the first place.

Alternative Courses of Action

d. Allow certain In-line representatives to participate in the decision making of the product design and process when Invention Factory will introduce its latest ideas or concepts.• PROS:

In-line resistance in handling something that is finished or closed to being finished will be resolved since they themselves will have a hand in the innovation process of the new products that Invention Factory will be presenting.

Alternative Courses of Action

• Proper adjustments in terms of marketability will be taken into consideration earlier and effectively considering that In-line members are specialized in that department.

• They will have a say in the product development and will know how to position the product in the market when integration period will begin.

• In-line will also have the right to decide which customer segment will handle this latest innovation coming from Inventory Factory.

Alternative Courses of Action

• CONS: The possibility of worsening the tension may ensue given that iF may resent the intervention of In-line teams in what they consider as their own field. In-line teams also are not equipped with the specialty to deal with the functionality aspect of the product unlike Invention Factory since their main concern is how it would necessarily penetrate to the market.

Group Recommendation

• The group recommends the fourth option of allowing selected In-line representatives to be involved in the decision making process with regards to the product design and process of the latest ideas that will be presented by Invention Factory.

Action Plan

• 1. Higher management in Timberland will assess members from In-line teams who are capable of balancing fashion and functionality so that they may have the necessary skills to be the bridging gap between Inventory Factory(IF) and In-line. They should also clearly state the roles and expectations coming from both IF and In-line so as to not blur the lines when it comes to the development of the new product.

• 2. After the assessment of In-line representatives, integration of these personnel will be imposed as a new innovation begins coming from Invention Factory so as to ensure that In-line teams will also take part in the design process of the latest product.

Action Plan• 3. Necessary feedbacks and evaluations from both entities

should be made during discussions of the new concept to assure that Timberland’s goal of having innovative products at the same time catering to the aesthetic pleasure of the customers will be met.

• 4. Opposing opinions should also pave way for much needed adjustments if In-line should think that product has a low chance of being entertained in the market or if iF thinks that the commercialization of the product is infringing in its innovativeness.

Action Plan• 5. After the conceptualization of the product from both iF and

In-line, iF should also be given the privilege to have a say in the marketing of the product after its integration to mainstream Timberland to settle a compromise between the two groups.

Conclusion• In conclusion, the problem of product design and process

given the current relationship between In-line team and Inventory Factory will be resolved by the imposed compromise and participation of both in the innovation process of the product.