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Finish Line Case Study

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Running head: FINISH LINE

FINSH LINE: Case Study

Octavia A. Rice

Webster University

BUSN 6110

Finish Line

How important is it to have a mix of products? When shoes slack off during the winter, the apparel business picks up. What are the implications of seasonal products? What problems does this create for The Finish Line? A product mix is an important consideration for any firm. It offers the ability to expand your customer base by offering more products in more niches. Seasonality has implications for everyday pricing, assortment, space management, and inventory management on a day-to-day basis, and should play a strong part in influencing business decisions. Because shoes make up about 70 percent of Finish Line’s business, the off seasons are difficult due to limited product mix.
Spread of risk. Given the way the buying takes place for the shoe products, who is taking the most risk? Is it the manufacturer or the buyer?
The buyer is the one taking the most risk. Even though it only takes two to three months for the company to actually produce the product, the normal lead-time quoted by a company like Nike or Reebok is six months. From the many choices presented, the buyer is faced with the difficult problem of anticipating what will be hot six to twelve months into the future. Imagine how difficult it is to anticipate the success of a Jordan or O’Neil during the next basketball season! The life of a new style is less than six months.
Differences between stores. A particular store might be an A store for ethnic basketball, a B store for outdoor wear, and a C store for running. The buyer has the ability to assign the A, B, and C ranking by department. They can even get down to a style-by-style ranking. How does this impact the

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