The issues surrounding Holey Soles include
• The inability to have a high market share due to dominance from Crocs.
• How to reach the goal of $40 million revenue while deciding upon expansion.
But the current impending issue is how to reach the goal of $40 million by 2009.
THE INJECTION MOLDED FOOTWEAR INDUSTRY ANALYSIS
• Fast growing company.
• Focused on innovative lifestyle products.
• Unique SoleTek and Smartcell foam technologies.
• Competitive pricing for a high quality product.
• Spend time in training and mentoring employees.
• Strong customer service
• Work with clients of all sizes
• Canadian company image.
• Joyce Groote’s management expertise.
• Low cost production in China…show more content…
Medium to High
• Products are moderately differentiated. Although the clogs look alike they are vastl different in terms of the injection molded material, shape and fit. Medium
• Buyers pose a credible threat of backward integration. pg. 218 (e.g. one of Holey Soles distributors had set up its own company and was selling poor versions of the shoes.). Hence it’s a possible threat in the industry. Medium to High.
3. Bargaining power of Suppliers: Low – Medium
• Supplier is moderately concentrated. There are many suppliers in China who were coping the product and styles and selling poor versions of the shoe. Low – Medium.
• The industry is an important customer of the supplier since it’s the only industry it sells to. (Assuming there is no other use of the injection modeled technology. Low.
• Supplier’s products are differentiated or have built up switching costs. Low – medium because it seemed easier for Holey Soles to shift between manufactures because of quality issues. Pg. 219
• Suppliers pose a credible threat of forward integration. Low -Medium. Its is possible of suppliers to integrate forward but there is no such mention in the case.
4. Threat of Substitute products and services: Medium to High
There are other footwear’s that provide the same level of comfort and satisfaction such as the shoes designed by Nike, Adidas, Bata etc. as well as sell at a competitive price.
5. Intensity of Rivalry