ARBUS300- Final Research
Maria Bocto
XXXXXXXXXX
A
us 300
Professor Lynn Gazzola
April 11th. 2021
YXXKICKZ- Interview with Megan Nunne
Table of contents
1. YXXKICKZ organization - Business Overview …..…………………... 2
● Description ……………..………………………………………… 2
● Vision and Mission ………………………………………………. 3
● Services Provided & Market Strategy …………………………. 4
● Position …………………………………………………………… 5
● Competitive advantage …………………………………………. 5
2. Industry Analysis ………………………………………………………… 6
3. Business Strategy …………..…………………………………………… 8
4. Resources Analysis ………….……………………………..…………... 8
5. Management Preferences ……………………………………………… 9
6. Organizational capabilities …………………………………………….. 10
7. Diamond- E Evaluation …………………………………………………. 10
8. Summary Outlook .…………………………………………………….... 11
9. Exhibits …………………………………………………………………… 13
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YXXKICKZ organization
Business Overview- Description (Nunner, 2021)
YXXKICKZ is a sneaker reseller business operating in A
otsford, British
Columbia in Canada. CEO Megan Nunner has alone launched her successful sneake
eselling business to provide high-quality products-- specifically high-end sneakers, to
shoe- enthusiasts all around the world. Named after the YXX airport in A
otsford,
YXXKICKZ operates locally in A
otsford, where there is minimal to no competition.
YXXKICKZ is committed to acting in its clients’ best interests and matching them with
pieces that match their taste and preferences. The company launched its home page on
Instagram-- their main retail and shopping business page, at the beginning of
November, 2020. YXXKICKZ operates solely via its Instagram page and has managed
to gain the attention of a lot of sneaker enthusiasts in A
otsford. In A
otsford, the
sneaker reselling industry has a few players and YXXKICKZ is considered one of the
iggest players cu
ently; especially since its recent partnership with 2 of the biggest
sneaker communities-- HeatVault and Pure Sneakers. Said partnerships allows
YXXKICKZ to expand its resources and reach wider markets. HeatVault is one of
A
otsford’s biggest sneaker resellers, and a recent partnership with them has enabled
YXXKICKZ access to a physical store--
oadening its resources, and has added a new
layer of clientele. Seizing the opportunity to supply to a highly demanding market has
allowed YXXKICKZ to jumpstart its career and experience success within the first few
months of its launch. Furthermore, Pure Sneakers is a Facebook group where sneake
enthusiasts sell, buy, and trade their shoes with one another. Being a part of this
Facebook sneaker community enables YXXKICKZ to strengthen its social media
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presence and gain access to more products and clients. CEO Nunner has managed to
collaborate with these 2 players within the first 6 months of its launch; this is solely due
to CEO Nunners’ initiative and dedication to expand its business, grow its client base,
and strengthen
and image. Thus, operating on a local level in A
otsford and
partnering up with big players in the market act as competitive advantages to
YXXKICKZ (Exhibit 1). Additionally, although its operation is on a local level, YXXKICKZ
offers worldwide shipping, which further builds on their competitiveness within the
industry (Exhibit 1). Cu
ently CEO Nunner is solely operating the business-- with mind
to the partnerships. She is an entrepreneurial figure who is cu
ently pursuing a second
degree in Business while growing her company.
Vision and Mission (Nunner, 2021)
Vision
YXXKICKZ is committed to providing high-quality products of high-end shoes and
apparel to sneaker enthusiasts with unique tastes and preferences in a timely manner.
Our duty is to act on behalf of the client to secure unique pieces and enhance the
client’s experience
Mission
YXXKICKZ is cu
ently expanding into new markets and connecting with new
suppliers to enrich the company’s resources and expand their product lines. Both short-
and long-term goals are set for the company by Director Executive Nunner and she has
een relentlessly innovating and growing her company.
The company’s cu
ent short-term goals are to grow a base of followers on thei
Instagram’s home page as well as gain a 100 client references (Exhibit 1). YXXKICKZ
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cu
ently has over 3.5K followers on Instagram; however, the recent partnerships with
fellow competitors will advance its reach and help gain followers. Additionally, since the
sneaker community is very quaint in A
otsford; thus, gaining client references where
they recommend YXXKICKZ to their social circle is also on CEO Nunner’s list.
In regard to long-term goals, YXXKICKZ is working to expand its services to
operate Canada wide. Though one of YXXKICKZ main focuses is to continue operating
at the A
otsford local level to maintain its competitive advantage; YXXKICKZ
worldwide shipping has led CEO Nunner to seek expanding her operations Canada
wide while the company’s headquarters remain in A
otsford.
Services Provided & Marketing strategy (Nunner, 2021)
Cu
ently YXXKICKZ provides worldwide shipping and is thus able to serve a
global clientele. The service provided is both reactive and proactive to fulfill as well as
anticipate clients’ needs. Since CEO Nunner is an active member in the sneake
community, she has a plethora of resources to access which allows her to find specific
pieces the client wants (reactive) or purchase pieces to add to her product line
(proactive). She is also very present on social media and is involved with othe
esellers. Since her Instagram business page is the main means of operation, she is
able to easily communicate with clients and other sneaker enthusiasts to trade, buy, o
sell pieces. This enables her to connect directly with clients via direct messaging,
provide efficient and high-quality service, and is very cost effective expenses-wise.
YXXKICKZ Instagram page also serves the company’s marketing strategy. It allows fo
Ms. Nunner to post her weekly purchase and start biddings and transactions ove
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Instagram. Her multifaceted use of her page serves the overall quality of operations and
service provided.
Position
Locally, YXXKICKZ stands in a very strong position with the A
otsford sneake
community (Exhibit 1). The sneaker reselling industry is very recent in A
otsford and
YXXKICKZ among very few other competitors has managed to dominate the market.
Additionally, YXXKICKZ has continued to strengthen its position in the market by
partnering up with like-minded individuals who share the same values and allow for the
expansion of the company’s resources and product line. CEO Nunner is fully aware that
operating digitally without a physical store can cost her a client segment. This acted as
an incentive for her to partner up with HeatVault. Heatvault is also a main player in the
sneaker reselling with a physical store and a well-established client base. CEO Nunne
took the initiative to reach out and HeatVault was very receptive to the collaboration
ased on Ms. Nunner’s achievements in such a short time. Furthermore, YXXKICKZ
has also scored a spot in an exclusive Facebook group-- Pure Sneakers, where it
gained further access to more clients and business opportunities. These initiatives have
acted in accordance with CEO Nunner’s commitment to the company’s vision and
mission.
Competitive Advantage
Upon the realization of the market opportunity, CEO Nunner decided to launch
her Instagram reseller page-- YXXKICKZ, in order to fulfill the market demand. Due to
the lack of competition, YXXKICKZ has a very strong position within the market, which
acts as a competitive edge (Exhibit 3). Furthermore, the operations are very efficient
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and the CEO has direct contact with the clients, eliminating middle men and cutting
down on costs. Additionally, the company has initiated partnership and collaboration
with other players in the market that allowed YXXKICKZ access to a physical store and
a wide client base.
Additionally, CEO Nunner has connections within the sneaker reselling business that
enable her to purchase items for a fair price and sell it for a big profit. Most of the
products offered by YXXKICKZ are purchased upon clients’ requests. If an item is sold
proactively (no client has initiated the transaction) and if no clients have displayed any
interest, CEO Nunner will allow bids on the item and sell it to the higher bidder. This
financial intellect has allowed her company to
eak even within the first few months of
its launch and continues to this day increasing her revenues. Thus, the company’s
financial performance also acts as a major advantage (Exhibit 5 & 9). On the othe
hand, since CEO Nunner works on behalf of clients herself, this means the elimination
of the middleman role. This allows for direct contact with clients and a more personal
elationship. This organizational environment is rare, and most competitors and big
companies lack that personal relationship with the client. Finally, the company ships
worldwide and operates digitally which helps it reach a wider market and keep up with
social and technological trends. All of these advantages act to boost YXXKICKZ’s
position within the market and differentiate it from its competition.
Industry Analysis
The sneakers reselling industry has successfully emerged in Canada and
managed to become a multi-billion industry with a global market (Exhibit 2). It is a
prevalent industry and is a division of both apparel and retail industries. The industry is
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very attractive and has recently become very active due to cele
ities’ and athletes’
sponsorships and promotions (which drive the value of the market). Within the industry,
emphasis is on collector’s pieces and unique high-quality sneakers that are designed
and made for a limited population (those who manage to purchase early releases and
collector pieces). This emphasizes the social aspect of the industry as well as the role of
technology within the industry. Additionally, there are very few regulations and policies
estricting the industry and the same laws and terms of retail and apparel industries are
applicable for the sneaker reselling industry as well. Finally, the sneaker reselling
industry’s contribution to sustainability and environmental awareness revolves around
sustainable and eco-friendly packaging, as well as eco-friendly modes of shipping and
transportation.
In A
otsford, the sneaker reselling business has recently started in A
otsford
and a few of the top players in the market are HeatVault and YXXKICKZ. Due to high
demand and limited supply, the industry is still emerging; however, is very profitable in
A
otsford. Within the industry, social trends and habits influence the operations of
suppliers. When new sneakers are designed, companies send samples of the product
to cele
ities and athletes only, who then proceed to share the products on social
media. This is one of the many ways sneakers retailers, as well as resellers, market
their products. After cele
ities promote the product, companies release a limited
number of pairs while inflating the prices. These limited items are then traded and
esold within the sneakers community and to shoe enthusiasts. This is the core of the
sneakers resellers industry in which YXXKICKZ operates.
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Business Strategy (Nunner, 2021)
The company focuses on supplying the high demand for sneaker resellers in
A
otsford. The goal is to connect clients with pieces that go along well with thei
preferences. This requires both a proactive and a reactive stance from YXXKICKZ,
which are reflected in the company’s core activities (Exhibit 5). The proactive stance
stems from the company collecting and offering a product line of sneaker stables in
efforts to anticipate clients’ taste. On the other hand, the reactive stance stems from the
company matching the