BY,ANNA VARGHESE, BATCH -B

INDUSTRY ANALYSIS

ONSHOES INDUSTRY

KEY PLAYERS

JIMMY CHOO

Alexander McQueen

TYPES: 1. ATHLETIC SHOES

2.BOOT SHOES

3.DRESS AND CASUAL SHOES

4. DANCING SHOES

5.ORTHOPEDIC SHOES

Source: Packaged Facts

Top ten footwear consumption all over the world

BARRIERS TO ENTRY• Access to inputs - Access to inputs is easy

• Access to distribution opportunities is limited because of the top brands which have already recognized in market

• Switching costs are low

• Government policies –permitting and licenses are not that strict.

• Intellectual property – Patents and other types of proprietary intellectual property are effective in limiting industry entry.

• Capital requirement- With regard to start up capital, it may be little costly because start up is labour and capital intensive.

• Brand Identity- dominated by branded products and strong brand loyalty.

HIGH !

BUYER POWER• Brand identity-High end brands and Large

companies in the industry set price points for their products.

• Substitutes Available- Except athletic,orthopedic,dancing shoes

all other types can be substituted by normal sandals.• Product Differentiation –Low

Buyer’s Incentives –Seasonal sales offered by reputed brands and stores

• Buyer concentration vs. industry- Buyers are less concentrated, reduces buying power.

• Buyer Volume-Don’t buy in large quantities.• Price sensitivity-Buyer’s are more sensitive to

price.

LOW!

SUPPLIER POWER• Major firms can switch suppliers quickly

without worry of a significant decrease in quality.

• Threat of forward integration –Low due to high entry barriers

• Supplier concentration- Fragmented• Any supplier that meets quality standards for

the company will be able to supply these commodity goods.

LOW !

THREAT OF SUBSTITITES• Can be

substituted except for athletic shoes by normal sandals

• Switching costs are low

MODERATE

RIVALRY WITHIN INDUSTRY

• More of an emphasis on non-price competition.

• Firms instead try to increase their range of products to capture more of the market.

• Brand image and customer loyalty is huge in this industry, which leads to the brands competing in advertising.

• Some companies acquire other brands; mergers.Ex; Adida’s acquisition of Reebok may help it challengeNike.

HIGH

THANK YOU !