Founded inthe company manages to retain its leading position in the international industry environment.
Major market participants profiled in this report include Nike Inc. Key players have also been profiled on the basis of company overview, financial overview, business strategies and key developments. Not only this, the increasing demand for trendy, yet comfortable footwear among all age groups a key factor driving the global footwear market.
The huge pool of young population, especially in the developing countries, is anticipated to spike the demand for athletic footwear in the near future. Are the driving forces making competition more or less intense? Versatility, comfort, and style are some of the major factors driving the appeal of sportswear, which in turn is likely to propel the growth of the footwear market globally.
Nonetheless, this element of the Five Forces Analysis shows that substitutes exert only a moderate force against Nike Inc. Europe is the second-leading regional market that has shown a significant growth in the demand for athletic footwear.
Factors such as great diversity in the footwear market and easy availability of products in many retail outlets are anticipated to encourage impulse buying of these products.
The research report has been compiled using primary and secondary research methodologies to present an accurate and exact case of the global athletic footwear market.
What are the main factors that drive change in an industry and what will the impact be? The following external factors contribute to the weak threat of new entrants against Nike Inc.: On the other hand, supplier power of the footwear industry is a major driving force as well.
The moderate availability of substitutes also enables customers to buy other products instead of always buying from Nike. On the other hand, the growth in demand for athletic footwear is expected to remain sluggish in Europe and North America, where the market has grown saturated and the percentage of the elderly is much higher than other regions, impeding in the purchase Driving forces footwear industry athletic footwear.
Also, there are only a moderate number of firms that significantly impact Nike. Based on materials, the market has been segmented into rubber, plastic and others.
Different brands as well as retailers are re-orienting their focus on this market, which has led to a significant increase in the number of retail outlets worldwide.
Based on this element of the Five Forces Analysis, the external factors that lead to strong competition requires Nike Inc. The expansion of the online selling community can serve as a threat to new entrants due to the lack of knowledge the customer has about the company or product, on the other hand this is a great opportunity for growth and expansion of larger more well known companies.
A recommendation is for Nike Inc. High cost of brand development weak force High economies of scale weak force Moderate cost of doing business moderate force The high cost of brand development makes it difficult for new entrants to succeed in competing against large firms like Nike Inc.
As production rates strive to match the growing demand, manufacturers are finding it difficult to maintain a lower product cost while gaining profits. In addition, there has been a surge in health and fitness activities among consumers worldwide, particularly in running and other sports.
The factor of comfort is an integral part of the global athletic footwear market and the growing demand for greater comfort is currently the leading driver for the market over the coming years.
Other than a few specialty products, brand recognition in the overall industry is relatively low, which enhances the strength of new entrants. Since the majority of the footwear industry is manufactured in low-cost locations, many other locations are unable to compete in the market.
The footwear industry is showing upwards trends of growth and expansion in the global perspective, and does not show signs of slowing down anytime soon.
The high preference among consumers to make purchases through these channels accounts for their high revenue share to the overall market. However, the forces and corresponding external factors enumerated in this Five Forces Analysis must remain among the strategic considerations of Nike Inc.
This is because rubber is the most material that is used in every type of shoe ranging from athletic to non-athletic. Major geographies analyzed under this research report are: The low switching costs further add to that likelihood.
This is the second article in the series of strategy analysis practices and tools for business leaders and strategy practitioners. The market has been classified on the basis of material into rubber, plastic, and others. An overall rise in the retail culture is triggering the growth of global footwear market.
On the other hand, the availabity of counterfeit products that are developed by local manufacturers is anticipated to hinder the growth of the global footwear market during the forecast period. Identify external driving forces likely to exert the greatest influence over the next one to three years in the industry.
High cost of brand development weak force High economies of scale weak force Moderate cost of doing business moderate force The high cost of brand development makes it difficult for new entrants to succeed in competing against large firms like Nike Inc.Aug 26, · Industry conditions change because important forces are driving industry participants (competitor, customer, or suppliers) to alter their actions; the driving forces in an industry are the major underlying causes of changing industry and competitive conditions- they have the biggest influence on how the industry landscape will be altered.
Global Footwear Market: Snapshot. The global footwear market is rising expeditiously as footwear is increasingly becoming a fashion accessory.
Not only this, the increasing demand for trendy, yet comfortable footwear among all age groups a key factor driving the global footwear alethamacdonald.comon: State Tower, 90 State Street, SuiteAlbany, The global athletic footwear market could grow at a CAGR of % from to It will reach market value worth USD billion by Location: State Tower, 90 State Street, SuiteAlbany, The driving forces in an industry are the major underlying causes of changing industry and competitive conditions These driving forces have a significant impact.
Analysis on Footwear industry 95, views. Share; Like djsam Follow Published on Mar 6, Published in: Real Estate. 7 Comments 61 Likes CONCLUSION The athletic footwear industry is a strong, market driven industry.
From the five forces, four are favorable in this industry. The threat of the potential entrants is low, the. Nike Inc. enjoys a top position in the global athletic shoes, equipment and apparel market.
A Five Forces Analysis, based on Michael Porter’s model, points out that competition, customers and substitutes are the most important external forces in .Download