Business

Introduction
I have chosen Oakley Inc., because sport is my leisure pursuit and the company offers many sport accessories of high quality. It has always performed in a distinct manner while providing quality products and services. Its management style, organizational structure, objectives, policies and philosophies provide an insight into the successful business approach which has resulted into profitability, growth and higher return to stakeholders.

Industry Overview
According to Plunkett Research (2009) there exists the notion of diversification and people have different perceptions concerning sports. It is being perceived as a matter of interest by both viewers as well as entertainers through out the globe. Some might think of sport as a platform for gambling, while others might consider it as a recreation arena. From the business perspective, it provides a healthy business model for investment by explicating a continuous positive slope. Athletes consider it as a symbol of success which can direct them towards recognition and fate. Governmental organizations and authorities regard it as a way of generating revenue.
       
According to certain statistical data, in the United States only, the sport industry has the revenue of 400-425 billion on yearly basis. It is also found that that a considerable part of the population of the United States, the United Kingdom, Japan and Australia earn their living through the sports sector. The Official Bureau of Labor states that about 1.5 million Americans are directly involved in the business. In comparison to this, about 50, 200 people perform in the wholesale channel, while 244, 600 people do business in the retail sector. It was also highlighted that different sports have become extremely famous due to key players like Lance Armstrong, who has marvelously promoted cycling by winning Tour de France. SGMA (sports goods manufacture association) which mainly focus on propping up individual sports exclaimed that Tennis which is one of the cost efficient sports and it can be encouraged during the prevailing period of economic recession and high fuel prices. It participation has increased to 43 from 2000-2008. The higher prices of gasoline has lamented enthusiastic sports like RVs (recreational vehicles), motor boats and others having massive engines. If the prices for gasoline increase by 3 or more then the sales of sports equipment with huge motors will crash down. During the time span of 2000-2008, the participation in golf has shown a declining trend, however, preference has increased tremendously in particular sports like joggingrunning, paint ball, lacrosse, table tennis and spinning. Furthermore channels like online gaming, internet and television broadcasting has deemed to flourish games like high-stakes poker and other sports events. Long-term has been found health and fitness sectors. In the United States alone health clubs are enjoying with 40 million members and other 25 million use exercising machines in their homes. About 78 million baby boomers that have no constraints as far as time and money are concerned and focus on improving their lifestyles depicts a favorable opportunity for sports industry. According to SGMA several exercises sorts like spinning, pilates, treadmills and the elliptical motion have revealed remarkable growth.
         
Along with this, fashion and technological influence are the two major factors, due to which sales of sports equipment have shown a positive upward trend during the current period. Businesses are continuously participating in new product development activities and are providing compelling reasons to consumers to buy their products. Golf ball, club makers, snow ski and board makers are incessantly utilizing technological advancements to bring innovation and creativity. The manufacturers of ski gear more often focus towards style, color and fashion rather technology is involved or not. Media is playing an important role in the sports industry. Sports coverage is specifically being watched online. People are using digital television recording devices like TiVo to watch sports coverage. Major emphasis is being given to sports news and events videos, which are conveyed to cell phones with state-of-art technology. In the overall scenario, recession has a major influence on the sports industry. Companies are facing difficulties in selling tickets and even manufacturers of sports equipment have found decrease in their sales. Although consumers like to follow their favorite teams, but they have reduced their expenses on luxury goods and services. Since ticket prices are constantly rising, several businesses have been closed, while others are trying to renovate themselves. The manufacturers of golf equipment, RVs, motor boats have faced a decrease in their profits. Companies are now trying to price their products appropriately in order to gain the major market share. Today, the major focus is towards high tech gear at suitable prices, identifying value opportunities, family recreation, offering ticket packages, health and fitness equipments and developing innovative designs and selling products at right prices.

Company Overview
Oakley Corporation was founded in 1975 by Mr. Jannard, who was the first to design an orbicular formed handgrip for motocross motorbikes. Since its beginning the company has remained market oriented and has followed contemporary market driven strategies. The company brought a new concept to eyewear through reinvention. The owner named the company after the name of his favorite dog.  The organization develops world class products for athletes, who consider the possibility as one of the major constraints. Today the business operates in more than 100 countries while having 575 patents and 1100 trademarks being used throughout the globe. The head office of the company is in Southern California.
         
The business has developed a state-of-art research program along with the production and operation facility, and each and every brand goes through the virtual CADCAM engineering software. Its products are tested through the spectrophotometer and simulation chambers. Its designs are formed based on the philosophy of sculptural physics which aims in solving different problems and issues on the basis of science and the key is enfolded into the art with the expertise of technical engineers and artisans who work on permanent basis while focusing on product development strategies by enhancing the product categories around its core competencies. The business performs through collaborative efforts and cross-functional approach. The business operates with an entrepreneurial mind and competes with the best-in-class. The business has distinguished itself from me too approach and its products are not available at the mass market retailers. It has evolved towards high-end retailers and specialty stores. There are Oakley stores where all of the companys brands are available. Moreover, Oakley Vaults sells products on discounts along with wide variety of seasonal merchandize. The OSAs (optical shop of Aspen) sells high-ends products and accessories comprising of brands like Chrome heart, Chanel, Cartier, Paul Smith and Christian Dior etc.

Overview of the Products
Most of the people associate Oakley Inc. with eyewear brands however, the corporation operates its vast array of diversified product lines. The product portfolio basically focuses on the athletic performance. It well-known products include

Sunglasses Oakley leads in the category with its advanced sports technology. The numerous inventions of HDO (high definition optics) with polarized lenses have been awarded. It uses EN1836 standards for the proper axis. Due to infusion molding it resolves the issue of miasma and deformation.  It provides a variety of spectrums to match the environment through different color lens. Due to polarization it gives 99 efficiency. Furthermore, its eyewear meets all the resistance standards as authorized by the American National Standard Institute. The use of the hydrophobic technology has resulted into the clear vision while protecting it from any sort of contaminant or oil repelling or water buildup.

Prescription Eyewear The Company provides best prescription optics through its line of ophthalmic-specific frames and corrective sun lenses. Oakley activated by transition lenses which are accompanied by Rx system endow with quality service.

Goggles It offers goggle for skiing, motocross, BMX, mountain biking and snow boarding. Oakley Stockholm has been specifically designed for women. It 3D cranial geometry and F3 anti-fog coating have facilitated among product features. In motocross it has established an advanced tear-off system as a benchmark.

Electronics The business came up with the concept that the audio system should be placed near the ear and invented Oakley Thump successfully. Razrwire and ORokr include a stereo system, as well as Bluetooth for wireless connectivity with cell phones. In individual oriented games these high definition optics give clarity.
Apparel The Company uses the membrane technology which is water proof and breathable with a reversible heat storage system. The use of CADCAM softwares and bio foam panels are some of the factors for its achievements.

Footwear The business offers footwear for hiking, racing, winter and motor sport and the military. The Net Shape technology which uses CADCAM software provides durability and comfort. The invention of the Red Code prevents the player from shocks and absorbs ground forces.

Accessories The basis objective is convenience and comfort and the company offers backpacks and bags which are designed through the application of ergonomics. The sculptural design has assisted the company in developing distinctive accessories ranging from belts, wallets to bags for surfing boards, cases for eyewear etc.

Watches The watches explicit the athletic concept which are used to measure split, intermediate or cumulative time. It offers a premium feature to set local time with the feature of the world city.

Apart from this its brand portfolio for optics consists of fox racing, Oliver people, Mosley tribe, Paul Smith spectacles and eye safety system.

Stock Symbol and Stock graph
According to Funding Universe (2002) Oakley Corporation is a public company and it is listed in New York stock exchange. It ticker symbol is OO.  
Figure 1. Five year stock graph for Oakley (NYSE), 2010
         
According to Globe Newswire (2007) the merger of Luxottica Group with Oakley Corporation was voted by 83 of the common stock holders of the business. It has performed outstandingly and has shown consistency for the past 3 years. According to Joseph (2009) that Oakley has remained a bright spot for Luxottica Group. The Chicago William Bliar investment company found that during the period of recession Oakley Corporation revenue increased by 1.1 billion in the year 2009.

Domestic and International Competitors
The business has both direct and indirect competitors. The key competitors of Oakley Inc. include Adidas, Marchon Eyewear Inc. and Nike (Hoovers, 2010). According to Edgar Online (2007) the company occupies a highly competitive position domestically as well internationally. The business believes that there are critical components for the successes, which are regarded primarily, including the integrated approach, which the company follows throughout the business process in attaining quality, sustainability and the technological advancement. The learning capabilities, marketing efforts and the protection of intellectual property rights have enabled the business to maintain its competitive position in the arena. The company competes with SMEs (small and medium enterprises) for the niche market. Its major domestic competitors include Luxottica Group, Safilo Group and Marchon Eyewear Inc. The key components for building the  competitive edge include brand image, understanding fashion trend, strategic marketing, and channels of distribution and product offerings and in order to sustain the company at the leading position it requires classical performance among all the highlighted factors. The business specialty stores compete with mall-based specialty retailers. Luxottica alone has a wholesale network in around 120 countries which entails the availability of resources. In athletic segment the business compete with Nike, Timberland, Adidas, Foot joy, Burton, Billabong, Patagonia and Columbia sportswear etc. In niche market several competitors include Tiva, Vans, Ashworth and Reef etc. In fashion and luxurious watches some of the major competitors include Omega, Swiss, Rolex, TAG and Swatch etc.
 
International Sales Management
According to Business Wire (2000), the business occupies a separate function of sales and marketing, which deals with the international management across different countries.  The key goals of the function include maximizing international sales, building the brand image and leveraging distribution channels to maximize profits. Its international sales represent 43 of the world wide sales. Moreover the optimistic attempt for launching an e-commerce website has facilitated in generating more revenue while minimizing cost and becoming customer oriented by focusing on the relationship marketing. The business went through the reorganization in order to fulfill the business requirement of selling the assortment of products and has increased the number of sales representatives. It also appointed internal brand managers to facilitate international offices in formulating branding strategies. Endorsement has remained an effective factor in boosting up the international sales. It was explained that e-business assisted that international management where the firm uses distribution and category diversification strategy to adopt a synchronize approach. Reuters (2007) highlighted that it sales reached 263.2 million for goggles, sunglass and protection eyewear and growth increase to 26 from 22 during the same period.

International Markets
Oakley (2010) highlighted that the business operates in international markets including the Middle East, America, Asia, the Western and Eastern Europe. The business has separate governing bodies in the major countries in order to meet needs and requirements of local consumers, specifically, in Japan, America and Australia. However, the corporation has shown consistency in delivering excellence, while meeting standards. In the United Kingdom the business has more importantly focused on merchandizing, whereas in the United States the business elaborates the importance of individual games.

SWOT Analysis of the Company
Soderberg (2009) conducted the SWOT analysis of the company as follows
Strengths
It has a strong brand portfolio which involves the history of successful efforts with key emphasis towards the product mix and brand extension strategies.
The company has adopted strong principles of vertical marketing strategy where major emphasis is given to Relationship VMS (vertical management systems).
The business has developed strong distribution network throughout the globe.
Weaknesses
Its existence in the contact market seems quiet stumpy.
The business has adopted the policy due to which it has concentrated suppliers.
Opportunities
Opting for licensing agreements seems one of the major opportunities.
Acquisitions rather than mergers entail long-term effectiveness.
The business can extend into optical category.
B2B business can act as a special segment.

Threats
Retail consolidation is the major threat.
Laser surgery and prevailing concept of counterfeit goods can deliberately affect the company.

Porters 5 Forces Model
Entry The Company has depicted a medium entry in the growth industry. It frequently offers patented products with high capital investment while requiring highly skilled labor.

Suppliers Suppliers are weak due to consolidation and it occupies the major expense portion of approximately 40.

Buyers Buyers are strong comprising of military and government customers with strong power while athletes are more prices sensitive.

Rivalry There exist 550 firms in the United States alone, with 70 of the firms having less than 20 employees, whereas only 3 firms have more than 250 employees.

Substitutes Substitutes have high availability, since there are products obtainable at cheaper prices and their exist alternatives against major patents.

Job Opportunities

According to Oakley (2010), the problem identification is considered as the DNA of the business and it exists everywhere in the corporation. Skills and qualifications are important for candidates during recruitment and selection. The business offers different sorts of perks to its employees, there exists a separate health and fitness club for them, moreover, they participate in different games. A candidate should have an inspiring vision, long-term objectives and an enthusiastic approach creativity and innovation.

Conclusion
The Company has wholeheartedly followed the market-driven strategy. It has continuously tried to match its capabilities with the core functions in order to meet the value requirements of the business. The corporation has always focused on capitalizing and leveraging opportunities. Its business and marketing strategies are marvelously integrated with the corporate strategies. The marketing plan implies long-term objectives and goals and each and every SBUs (strategic business unit) is being dealt with properly to achieve the strategic objectives.

Summary
The sports industry has shown positive growth since decades. The focus is being shifted to the individual oriented sports. However, the industry has been affected because of the prevailing recession. Oakley Corporation, which is one of the key players in the sports industry, was started by Mr. Jannard in 1975 with the objective of the continuous improvement in order to meet the requirements of athletes. The companys portfolio comprises a diversified set of product lines which are being manufactured through the state-of-art technology. Its stock price has remained flat for the past two years however, even in the recession the business generated healthy profits. The business is surrounded by both direct and indirect competitors among which it remains the leader because of its state-of-art technology, distribution network, strong control over its patents and capabilities. The international sales contribute the major portion in the over all sales and management is opting for different programs to enhance the efficiency in grasping international product market. The business overall brand portfolio is termed as the major strength while suppliers concentration is the major weakness. B2B is one of the major opportunities and retail consolidation is considered as one of the major threat.