Wolverine World Wide SWOT and PESTLE Analysis

Strength

1. Strong portfolio of performance and lifestyle brands: Wolverine World wide maintains an industry leading portfolio of performance and lifestyle brands. These brands enjoy over 1000 years of combined brand heritage. The brand portfolio is divided into 2 groups. The Michigan group contains brands like Merell, CAT, Wolverine, Chaco, Sperry etc. The Michigan Group includes 5 brands which sell into Work Category which is approximately 20% of the global revenues. The Boston Group consists famous brands like Sperry, Saucony, Keds etc. All the brands consist of multiple products in each and enjoy a great recognition from the customers and have been consistently performing well. Merrell, Sperry and Wolverine are the market leaders in terms of market share in Hike, Boat and Work category respectively. The leading brands also are category leaders in other fields like winter/rain boots, military, trail running, etc.

2. Broad distribution base for domestic sales:Wolverine World Wide uses various means for sales in domestic distribution channels. It has a dedicated sales force team, third party sales representatives and point-of-purchase materials to support domestic sales. It also offers its products through service department stores, national chains, specialty retailers, catalog retailers and uniform outlets. Using volume direct programs to ship products to retail consumers, helps the company to provide products at competitive prices to major retail, catalog, mass merchant and government customers. The company owns distribution to over 4000 customers in 13 countries mainly in Western Europe and over 300 independent distributors across EMEA, Asia Pacific and Latin America. It also uses its own direct to consumer business through brick and mortar retail stores and eCommerce sites which accounted for 15% of revenue in 2019. Having such a broad distribution sales mix insulates the company from heavy dependence on any one client. The company also ensured that no single customer accounted for more than 10% of the company’s consolidated revenue in fiscal year 2019, 2018 or 2017.

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Weakness

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Opportunity

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Threats

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Political

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Economic

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Social

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Technological

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Legal

1. Federal lawsuit with townships over contaminated water: Wolverine world wide was accused of dumping chemicals known as PFAS near townships which resulted in environmental damage and contaminated drinking water. The federal judge then approved an agreement between Wolverine, state of Michigan and the two townships. Wolverine Worldwide had to pay $113 million over the PFAS-polluted drinking water out of which $55million would be paid by 3M to support the efforts to address pFAS remediation. 3M manufactured those products which were used in Scotchguard and sold to Wolverine. To ensure long term water quality for the community, Wolverine also announced $69.5 million towards the extension of municipal water to more than 1000 properties in these townships. When Scotchguard PFAS chemicals were discovered in the area ground water in 2017, Wolverine voluntarily ensured that all affected residents had access to safe and reliable drinking water by sapling wells, providing bottled water and installing more than 700 effective filters in residents’ homes.

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Environmental

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