Summary
The Cape Shoe Company case focuses on an entrepreneurial start-up in the highly competitive shoe industry. Upon the closing of a Florsheim shoe factory in a region of the Midwest that was once home to a large number of shoe and apparel manufacturers, with the majority of these having closed over the previous 30 years due to lower cost of overseas production, and concerned about the continuing loss of shoe manufacturing in the U.S., an entrepreneur from Chicago with minimal experience in the shoe industry, visited a Florsheim factory prior to its closing by Florsheim. After deciding that the facility represented too valuable a resource to be abandoned, the entrepreneur subsequently purchased the shoe plant and named his new venture the Cape Shoe Company. Based on his concern about losing American manufacturing jobs, and the belief that he could produce a competitively priced product, his plan was to produce 100 percent Made in America shoes. The interestingfocus of this particular case and ensuing discussions is that the entrepreneur has made the decision to go forward with Cape Shoe Company and his 100 percent Made in America theme, although having yet to determine target market(s), competition, product differentiation, marketing channels, marketing strategies, etc. Regarding the rather unique nature of the Cape Shoe Company start-up, and current industry scenario, students virtually have a clean slate in which to begin discussions concerning recommendations on strategic management and marketing questions.
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Cape Shoe Company
INTRODUCTION
Manufacturing has been a primary source of America's wealth for almost 200 years. In the early 1800's America obtained virtually all of its manufactured goods from Europe. During the War of 1 8 12 the British blockaded many European harbors preventing America from obtaining needed goods. As a consequence, America began to develop its own manufacturing capabilities in the Northeast. After the War, in order to help pay for the war effort and to protect nascent manufacturing concerns, the Federal government placed a large tariff on imported goods. Southern states, which were primarily agricultural at the time, opposed...See the full content of this document
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