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.
• Brand identity-High end brands and Large
companies in the industry set price points for
• Substitutes Available- Except
all other types can be
substituted by normal sandals.
• Product Differentiation –Low
• 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
• Major firms can switch suppliers quickly
without worry of a significant decrease in
• 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
THREAT OF SUBSTITITES
• Can be
athletic shoes by
• Switching costs
RIVALRY WITHIN INDUSTRY
• More of an emphasis on non-price
• 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.
acquire other brands;
Ex; Adida’s acquisition
of Reebok may help