This document discusses the key factors in the footwear industry including types of shoes, barriers to entry, and forces affecting competition. The five main types of shoes are athletic, boot, dress/casual, dancing, and orthopedic. Barriers to entry are high due to intellectual property protections and brand identity/loyalty. Buyer power is low while supplier power is also low. Threat of substitutes is moderate except for specialized shoes. Rivalry within the highly competitive industry is high due to emphasis on branding and non-price competition between major manufacturers.

1. BY,
ANNA VARGHESE, BATCH -B

2. KEY PLAYERS

3. TYPES:
1. ATHLETIC SHOES
2.BOOT SHOES
3.DRESS AND CASUAL SHOES
4. DANCING SHOES
5.ORTHOPEDIC SHOES

4. Source: Packaged Facts

5. Top ten footwear consumption all over the world

8. 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.

9. • 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 !

10. 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

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

12. • 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!

13. 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 !

14. THREAT OF SUBSTITITES
• Can be
substituted
except for
athletic shoes by
normal sandals
• Switching costs
are low
MODERATE

15. 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.

17. • Some
companies
acquire other brands;
mergers.
Ex; Adida’s acquisition
of Reebok may help
it challenge
Nike.
HIGH