Industry Analysis Paper

2047 WordsMar 30, 20139 Pages
Athletic Footwear Industry Analysis When you think of athletic footwear what are your first thoughts? Nike? Under armor? Skechers? K-Swiss? All these companies have a common type of product/category called athletic footwear that they all sell and make a huge profit from. Throughout our analysis we will focus primarily on the United States Market industry compared to the International industry in athletic footwear/ running shoes. Within the United States there is a wide variety of different types of shoes but one of the most trend setting shoes that provide the most income are athletic footwear/ running shoes. The United States has over 10 billion dollars of revenue of profit that the athletic footwear industry provides and is one of the…show more content…
Their management know-how that they have developed over the years united with their learning curve allows them to dominate this industry (Athletic Footwear: Industry Analysis). The second threat is the threat of rivalry, which is the intensity of competition among a firm’s direct competitors, is high for this industry. The main factor of the competitiveness of the industry is due to the fact that industry rivals compete aggressively against one another for vital market share. The athletic shoe industry is very old and companies must focus on market share rather than concentrating on market growth. The athletic footwear market is expected to grow at a continual annual growth rate of 1.8% from 2011 to 2018 to reach 84.4 billion by 2018 (PRWeb). Non-athletic footwear is the largest market segment and is expected to grow faster than the athletic footwear sector. Various fashion trends in the market, such as demand for innovative designs and styles and celebrity endorsement, is driving the non-athletic footwear market (PRWeb). This new trend in the footwear industry makes the way companies compete vary vastly from company to company. Innovative companies such as Nike strive for product differentiation as well as massive marketing strategies, but other brands such as Sketchers attempt to capture the low budget appeal. 70% of the market share is made up of the top five players which include Nike, Adidas, Reebok, Puma and New Balance (PRWeb). Other key companies are
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