Geox Case Study

Good Essays
Focus Questions:

What are the key types of innovation? What types of innovation did Geox create? Geox’s rubber sole technology was developed after Mario Moretti, who suffered from hot and sweaty feet, took a pocketknife and stabbed the underside of his shoe. By doing so, his shoes were able to breathe and relieved the sticky feeling of perspiration. It was from this experience that Geox’s CEO began to innovate and develop the technology to address this common problem with no available solution. The first innovation that Geox created is the breathable rubber sole. The breathable rubber sole is a rubber sole that is perforated and contains a special microporous membrane that is both waterproof and breathable. The second innovation that Geox
…show more content…
This is because in order for Geox to begin in the shoe industry, the barriers were high. The start up costs, the research and development costs, professional advisement costs, and the supply costs all contributed to these high barriers. Additionally, both buyers and suppliers in this industry had weak positions because shoe companies constituted such a large amount of their revenue and the fact that consumers who wanted a particular style of shoe had few options to choose from. Lastly, there was moderate rivalry among competitors to gain market share in the industry as the leaders of each respective genre of shoe were largely decided.
Geox’s innovative strategy of induced strategic behavior (top-down) helped the company achieve a competitive advantage in a largely decided market by choosing to emphasize the technological development that is behind its products in marketing, by largely isolating its product focus and consequently becoming a leader in its industry, by putting every resource (research and development, and professional connections) that it had into effectively solving consumer’s problems, by making the store a one-stop-shop for families, and by expanding its brand into new markets slowly but effectively with little
…show more content…
Geox’s distribution network is one of its key successes, which has been developed in accordance to each country’s respective distribution structure and calibrated to serve a widespread network of multibrand clients. Additionally, Geox’s marketing technique makes it special in that it does not use models of even celebrities to market. Instead Geox chooses to use images of the product, alone which emphasizes its product’s unique technology. Geox markets itself as an organization that is based upon innovative technology as well as research and development. Another factor that Geox owes its competitive advantage too is its group structure, which helped maintain and expand its impressive distribution network, recognizable brand name, and quality with the use of third part producers. Another factor that Geox owes to its competitive advantage was the fact that it is a one-stop-shop for families and the fact that its brand is so
Get Access