Columbia unit of measure. A discount, is just

ColumbiaSportswear Company is a leading pioneer in the global clothing, footwear, accessoriesand equipment markets that specials in creating a wide assortment of top notch productsthat are meant for outdoor use. Columbia Sportswear needs to expand productexposure and increase direct customers access to their products. They also needto maintain their current profitable, yet competitive, retailer relationships.

SoColumbia needs to address several key problems faced by the company likeseasonal fluctuations resulting in unpredictable cash flows, protection oftheir key intellectual property and technology, undeveloped distributionchannels, and limiting the impact of commodity fluctuations.There are some alternative ways or strategies to overcome theproblems faced by Columbia Sportswear. Firstly, the best way to manage seasonalfluctuations, and maintain positive cash flows is to build alternative incomestreams. Columbia being a seasonal business so they have to create a strategicplan into action and focus on product development, to help level out anyseasonal dips. Although it may appearlike a diversion from the core business, set up extra revenue sources tocounteract the off-season.

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Columbia shouldn’t let attention to the alternativestream overtake a focus on the primary core business. To propel the businessforward it’s important to expand Columbia’s existing customer reach, andselling online and looking to enter international markets is a popular option.Targeting new customers both nationally and internationally could boost thecompany’s turnover and grow the business as a whole.   Columbia also can give discount for seasonal time so it canincrease the sales and maintain the positive cash flow.

There are two primary sortof discounts a retailer might take, promotional discounts during the season,and clearance markdowns as the season winds down. Planning these discounts runsas an inseparable unit with arranging sales and inventories in the event that thecompany utilizing retail an incentive as our unit of measure. A discount, isjust like a sale, reduce the retail value of Columbia’s inventory on hand.

Planningclearance markdowns are particularly critical to protecting gross margins, andcash flow. If Columbia plan the date of the first seasonal markdown before theseason even begins, they can plan the stock that they need to have available bythen, and thus their markdown percentage.Secondly, Columbia should implemented a plan to preventcompanies from stealing their intellectual property by obtaining patents.

Afterthe company receive patent for the business, if any other companies copy or tryto steal the invention by making, using, selling the Columbia’s intellectualproperty is considered patent infringement by Patent and Trade Office (PTO). Ifthe patent is infringed, Columbia can sue the offending party or company infederal district court. These will stop infringer and prevent further lossesand Columbia can request the district court to replace the damages. Columbia need to educate the employee about the awareness ofintellectual property. So, Columbia management need to add data protection toall internal documents, including manuals and employment agreements. Furthermore,train the employee on company policies regarding the use of confidential data.It helps to perform general security awareness training and invite thecompanies’ contractors, vendors and accomplices to participate, as they shouldbe subject to the data protection policies, as well. Thirdly, Columbia facing problem in maintaining profitabilityin a high competitive market.

Columbia can prevent this problem and increasethe profitability and the growth of company by using four key areas that canhelp drive profitability. These are reducing costs, increasing turnover, andincreasing productivity. Most businesses can discover some wastage to decrease,it’s important to not cut costs at the expense of the quality of their productsand services. An effective way tofind the real cost of specific business activities is by using activity-basedcosting.

Activity-based costing demonstrate the company on  how much it costs to carry out a specificbusiness function by attributing proportions of all the costs such as salaries,raw materials.Then, Columbia Sportswear need to review the products pricingregularly. Changes in the marketplace may mean that the company can raise theprices without risking sales. However, it’s wise to test any price rises beforemake them permanent. One of the most obvious routes to increasing ColumbiaSportswear’s profitability is to buy more effectively.

It makes sense if thesupplier regularly supply and see if can buy the same raw materials morecheaply and efficiently. However, try to ensure that they maintain quality atthe same time.Columbia can expand their business market. Moving into newmarket areas can transform a business and, handled correctly, can significantlyincrease Columbia Sportswear’s profitability. Before you start, carefully research the potentialopportunity. This can provide new revenue at minimal cost and is ideal forboosting profit. In a nutshell, Columbia Sportswear should implement thesolution given to increase their competency in the market.

So they can easilycan compete with bigger firm like Nike in the market and also can make hugedifferent in the market by obtain customer loyalty. This will directly increasetheir revenue and the company will recognized in globally.


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