Enhancing E-commerce Sales through Optimal Product Portfolio Management: A Quantitative and Qualitative Analysis of Eton Shirts

Abstract

Eton Shirts is one of the largest producers of shirts in Sweden and has been one of the leaders in the industry for several years. In recent years, the company has started with sales through E-commerce, however, the model for how to develop new products has stayed the same since the wholesale model was used. There has also been a change in the market with casual shirts where the company strives to acquire a larger market share for these types of shirts, whereas Eton has largely been focused on dress shirts. Hence, the report’s objective is to formulate a strategy for Eton to enhance its product portfolio in the E-commerce sector. Additionally, it aims to devise a strategy for incorporating casual shirts while preserving its presence in the dress shirt segment. This report utilizes data obtained from a literature review, quantitative sales data, strategic group analysis, and interviews with key stakeholders from the case company. Firstly, for product portfolio management, the report used three goals for managing a product portfolio, namely maximization of value, balance, and strategic alignment, to provide a framework. Secondly, quantitative data in the form of raw sales was supplied by Eton which was analyzed to gather information about Eton’s shirt portfolio, sales, and relevant performance metrics. Thirdly, the report used a strategic group analysis in order tobetter understand the shirt market and to analyze Eton’s primary competitors. Lastly,qualitative interviews with key stakeholders from Eton were held to provide data of high relevance to the study and to understand Eton’s operations. With the gathered information obtained from these data collection methods, the report could produce relevant results. The first result of the research concluded that the company has a large portfolio of shirts that are not performing in terms of sales. Consequently, in order to enhance E-commerce efficiency, the company must streamline its product offerings. Not only was this result supported by the quantitative sales data, but also by comparison with competitors and research found in the literature review. The second result of the research concluded that Eton has to work more on establishing more strict frameworks for how product portfolio management is supposed to work. By utilizing the frameworks presented in this report, the company can create and manage a product portfolio that is more focused on the most profitable products, better balanced, and more in line with the company’s strategy