Team 6 Montes Calçados MKT 350
1) What factors have driven MC’s success? Is it a global corporation?
Montes Calcados has achieved success by sticking to their Brazilian identity and by
putting an emphasis on producing affordable, distinctive, and on trend shoes. A major part of the
company’s success is the fact that they are have positive relationships with subcontractors has
helped the company expand and allows them to introduce and ship new designs quickly. MC has
been able to separate themselves from other similar brands though by truly understanding their
key demographic of women between the ages of 18 and 35. MC has consistently produced styles
that have appealed to the demographic and this is a key driver in their success. This case study
and company are reminiscent of the Harmonie case where the French water company trying to
enter global markets. After discussing in class, the conclusion was that they were not yet a global
brand and that is the same for MC. If MC is able to continue their market penetration and
operations in multiple countries, they might one day be a global corporation but as of now they
do not have the same level of recognition in all of their markets to be considered a global
corporation.
2) What are MC’s challenges and opportunities? How should MC prioritize them?
One challenge Montes Calcados has as a brand is wanting to expand while maintaining
their Brazilian roots. Montes has discussed with her team about the worries of losing the
fashionable reputation the brand has, if they were to grow larger. Another challenge MC faces is
the competition already in the shoe market. All of the shoe brands compete for shelf space. The
overall market entry barriers are low, so many companies come and go. The competition is so
high because companies want their footwear lines to be iconic and continuously fashionable, this
way they can have staying power. To prioritize their reputation, they should distribute to more
luxury-based retailers. The age demographic is also a topic of concern, if they expand to a wider
Team 6 Montes Calçados MKT 350
range of ages how will they remain stylish in reputation. To combat the struggles of determining
a target market, they could have a separate small line for an older customer-base.
An opportunity MC has is to have a strong online presence, their success in Nordstrom
should be an example for further online entry. Online shopping is quickly taking over for many
countries, this opportunity could further increase success. MC can create their own specialized
website and distribute to retailers like Saks, Von Maur, and Macy’s to grow globally especially
in the United State. Another opportunity the brand has is to reach smaller markets by distributing
to upscale boutiques. By reaching upscale boutiques they can remain distinctive in the shoe
market.
3) Should MC start distributing through online retailers? If it does, what are the
implications of its doing so? How should MC manage this change?
