Competitive strategy

Make sure each question is answered with at least 500 word count and apa format please.Please make sure to cite sources with 4 scholarly sources.

Sportsman Shoes has been a leader in the shoe industry for more than 30 years. Sportsman manufactures and sells athletic shoes for all types of sports. The company has pursued a low cost strategy in order to sustain its success. It sells a limited number of shoe designs and has held costs low through manufacturing efficiency and standardized operations. However, the past years have been a struggle at Sportsman. The shoe market has seen a rise in the availability of low-cost imported shoes that has threatened Sportsman’s competitive market position. As a result, company executives have decided it is time for a strategy shift.

Sportsman’s executives have done extensive market research and determined that many niche shoe markets exist where athletes are willing to pay more for shoes designed to meet the unique needs of their sport. There are very few market competitors in this niche shoe market and most do not have Sportsman’s past experience in controlling manufacturing costs. Sportsman has determined with talented shoe designers in place, they can manufacture athletic shoes to meet the needs of the niche markets using their current manufacturing facilities and employees. By designing shoes that have features that differs from competitors and meet the needs of a new specific group of customers Sportsman believes it will achieve a competitive advantage. Further, while their shoes will not be low cost like they were in the past, they will likely be able to sell these niche market shoes at a lower cost than market competitors and still make a healthy profit.

Therefore, Sportsman has decided to shift from its low cost strategy to a differentiation strategy and will begin to make production of these new specialty shoes. Sportsman must now make many tactical decisions in various functional areas of the company to support the decision to shift its overall strategy. Its first priority is to restructure the product development function. As it will need to understand the needs of niche markets and design shoes to meet those needs, it will need to hire and retain talented shoe designers. The company will also need to hire operations specialists to transition its manufacturing operations to manufacture these new shoe designs. Beyond hiring staff, Sportsman must also consider the implications for present employees to help them transition to their new work requirements. Therefore, there are several considerations the company must address in the area of human resource management.

1.Following Sportsman’s shift in competitive strategy, what are some considerations for the human resource practices?

2.What specific challenges will Sportsman face specifically in the area of compensation?