7. Dress shoes andsneakers for men and women Creating a shoe that no one else has Creating shoes the customers are looking for Smartpricing STRATEGIC POSITIONING
9. PORTER’S FIVE FORCES SUPPLIERS Bargaining power of suppliers (LOW) INDUSTRY COMPETITORS (creators) Threat of Substitutes (MEDIUM) Threat of new entrants(MEDIUM) POTENTIAL ENTRANTS SUBSTITUTES (free/noshoes) Rivalry among existing firms (HIGH) Bargaining power of buyers (HIGH) BUYERS (consumers/resellers)
10. ‘ The actual cost for my material is the cost of time I spend making them’ Backward integration of creators-in SL shoe creators can create their own virtual shoes without cost or other limitations Purchase of raw material for shoe-manufacturing is possible but scarce for virtual creators POWER OF SUPPLIERS- LOW
11. ‘Buyers are the same as in RL, if you like shoes in RL, you also like your avatar to have shoes’ Many potential buyers but relatively few buy. The older avatars willing to spend quite a lot on nice looking shoes Lots of stores that offer anything one can imagine Buyersdemandforfreeproducts POWER OF BUYERS- HIGH
12. Absence of economies of scale Incumbencyadvantagesindependentofsizeare quitesignificant Lowcost of entry THREAT OF ENTRY- MEDIUM
13. Avatars can build their own shoes-shoes, though, are relatively hard to make-there are ongoing learning programs but they are time consuming Avatars can go without shoes Avatars can get free shoesthe quality of which is not satisfactory for older avatars THREAT OF SUBSTITUTES- MEDIUM
