The Failure of Payless Company

One of the common menaces which are also the most perplexing phenomena that most successful companies face is the drastic changes in the market environment. The global economy is increasingly becoming competitive with most organizations failing to respond effectively to the changing demand for the public (Ross 2013, p.19; Drohomeretski et al. 2014, p.818). When firms fail to defend themselves against the dynamism and the stiff competition from other organizations that come up with intrinsic ideas and products using the modern technology, the chances of their survival diminishes with time (Corstjens and Lal 2012, p.43). One of such organizations that are on the brink of bankruptcy is the Payless Company that retails shoes.

There are a number of reasons that could have led to the failure of Payless Retail Company, one of the major reason why such a big corporation failed is the fact that the management took actions but the actions were not appropriate due to poor operation strategies. Payless Retail Company could have struggled in the face for drastic changes that are taking place in the current globalized and technological economy. For instance, Payless could have failed to keep pace with the changing demand of the society particularly the drastic changes in the fashion industry that require creativity each and every time. Payless could have failed to expand its influence on a global stage, which in return adversely affected them with its competitors such as Adidas and Nike taking a centre stage on a global market. Such international companies balance the needs of their customers by introducing new and improved shoes each year. However, with organizations such as Payless largely relying on the local market, it increasingly became difficult for them to compete with firms such as Nike and other upcoming retail companies like Sketchers. By enhancing the interaction and start operating on an international stage, the demand rises with more people get to know and understand the product (Samli 2015, p.20; Ross 2013, p.45). However, Payless could have failed to realize the power of interaction on a global scale, which eventually led to its bankruptcy.

Payless Retail Company could not have directed its operations function toward the achievement of the firm's corporate and environmental objectives. Although the system of Payless could have been good, maybe it was not designed in such a way it would meet the needs of its customers and the overall market environment. In this regard, the firm could have solely focused on efficiency while disregarding corporate and environmental consciousness. From a strategic perspective, Payless could also have failed to design products that could be recycled, which in return could have been involved in a conflict between the government regarding environmental policies. Moreover, the service delivery of Payless could have been inferior characterized by poor delivery and inconvenient selection of retail shops locations. The company could have been ignoring inspection checks that would have identified specific characteristics, which in return would have met the predetermined standards of their products. Finally, the corporation could have failed to meet all or part of the eight dimensions which provides an organization with a competitive edge. The eight dimensions include perceived quality, aesthetics, durability, performance, features, reliability, conformance, and serviceability (Drohomeretski et al. 2014, p.820).

From an operation strategy perspective, Payless Retail Company could have sought to gain a competitive edge by maintaining operations that are reactive. In other words, Payless could have focused on operations that are capable of influencing competitive success in the current globalized economy. In this regard, Payless Retail Company should have solely concentrated on approaches that reduce the negative impacts associated with the selected operations. Thus, the organization could have called for an outside expert when the strategic issues involving the operation threaten its progress and existence. The operation of Payless Retail Company should have insisted on making an important contribution to enhance the competitive success of the firm such as making significant marketing decisions to meet global levels. The decisions in return would provide sufficient credibility and influence the operations of the organization so that its potentials are realized. Moreover, the firm could have taken a worldwide viewpoint and extend its market from domestic level to involve other countries and become an international brand. For this reason, Payless would have been presented with an opportunity to improve its supply chain, learn how to enhance its operations, understand other markets, and engage with contributors around the globe (Slack 2015, p.23; Ross 2013, p.34).

References

Corstjens, M. and Lal, R., 2012. Retail Doesn't Cross Borders: Here's Why and What to do about it.

Drohomeretski, E., Gouvea da Costa, S.E., Pinheiro de Lima, E. and Garbuio, P.A.D.R., 2014. Lean, Six Sigma and Lean Six Sigma: an analysis based on operations strategy. International Journal of Production Research, 52(3), pp.804-824.

Ross, D.F., 2013. Competing through supply chain management: creating market-winning strategies through supply chain partnerships. Springer Science & Business Media.

Samli, A.C., 2015. Retail Marketing Strategy Development. In Coping with Retail Giants (pp. 17-25). Palgrave Macmillan, New York.

Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.