Marketing Analysis : Athletic Footwear Purchases

The concept of market structures and competitive strategies are important when attempting to compete in any market. Understanding what market structure your product falls under can help companies develop better competitive strategies and identify potential for loss and gains. The athletic footwear industry in the United States is highly profitable and continuously growing. In this paper I will identify market structure of the athletic footwear industry, the major retailers, and competitive strategies that can be used to maximize profits.

Obviously, there is a big number of driving forces in the athletic footwear industry. Each of these driving forces has different impacts—some of them can have a more considerable effect than others on figuring out how much cross-company differences influence market shares and a number of units sold. The first line of most influential factors includes comparative prices, S/Q ratings, and a number of models offered among the footwear competitors. These three most important competitive forces affect customer decisions of which athletic footwear brand to choose. Furthermore, the decisions of customers whether to purchase one brand or another are also influenced by such forces as advertising, celebrity endorsements, the number of independent retail

12. In Year 11, footwear companies can expect to sell a.no less than 3.8 and no more than 5.3 million branded pairs and no less than 750,000 and no more than 1.1 million private-label pairs. b.between 7 and 8 million branded pairs and 250,000 and 500,000 private-label pairs. c.an average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort. d.exactly 5.244 million branded pairs and 600,000 private-label pairs. e.exactly 4.844 million branded pairs and 800,000 private-label pairs

Today Nike Inc is the largest manufacturer of sports footwear, apparel and equipment with worldwide revenue in excess of $25 billion in 2012 under various labels including Nike, Nike Golf, Converse and Hurley. Seventy percent of the company’s value is derived from footwear and apparel sold under the main brand Nike with Nike footwear commanding a market share

The U.S. retail footwear market rose only 0.3% from 2007 to 2008. This increase was $46.6 billion in 2007 to $46.8 billion in 2008. That amount accounted for 24% of the global market that year. The U.S. retail footwear market saw even greater gains in earlier years. During the boom years of the U.S. economy from 2005 to 2006, there were 10% gains which added $4 billion in market value to the U.S. market. From 2004 to 2008 the U.S. retail footwear market grew at a CAGR of three percent.

The company I choose to write about is Reebok because I am a huge fan of their classic sneaker product and I am also a basketball and football fanatic. Reebok as a company is in a unified position as both a business and a business within the sports field. Building and successfully launching products related to sports is very difficult.

Nike has totally changed the sports footwear and sportswear market. Nike's huge selection of merchandise consists of specialized workout equipment, footwear, clothing, accessories and sports components. Nike is among the world's biggest brands and a leader in the sportswear industry because of their advertising, innovative products and sponsorship of top teams and

According to Marketline, the Footwear Industry is growing at a moderate rate, and the trend is expected to continue. In 2014 footwear, sportswear, and accessory retailers made up the largest proportion of US footwear sales (Marketline).

By the use of Porter’s Five Forces model to analysis the athletic footwear market around the world; our strategy is to cut the price of footwear in the Year 11 and 12, and to increase budget of advertisement and to bid celebrity endorsements in order to boost the sales volume in a competitive industry .

This manager’s report provides a financial performance review of the business operations for athletic footwear industry’s Elite Feet for production Years 11 through 18. Included in the report are trends in company’s annual total revenues, earnings per share (EPS), return on equity (ROE), credit rating, stock price and image rating. Additionally reported are the strategic vision for the company, performance targets for the aforementioned production years plus the next two years, the company’s competitive strategy as well as production strategy, finance strategy and dividend policy. Also discussed is a look at the company’s closest competitors and the actions that could be

The athletic shoe industry will be first analyzed by the Porter’s Five Forces framework. The well-known Porter’s Five Forces is a model that analyzes an industry and helps firms develop a business strategy. The five forces model focuses on six forces that will determine the attractiveness of this industry: (1) the risk of entry by potential competitors, (2) the intensity of rivalry among established companies within an industry, (3) the bargaining power of buyers, (4) the bargaining power of suppliers, (5) the closeness of substitutes to an industry 's products, and (6) the power of complement providers (Hill, Jones, & Schilling, 2015).

The athletic footwear industry includes all producers of shoes designed in an athletic style or for an athletic use. We define the active footwear industry as an industry that manufactures shoes for active lifestyles. The primary focus of this analysis is on the United States market as it represents roughly 32% of the overall footwear market (PRWeb,

Competition is very fierce due to the number of companies competing for sales. Lots of money goes to marketing and promotions using various channels to reach the young demographic group of consumers who spend the most money on Nike’s products. Growth is slowing down in the athletic footwear industry. But new markets are emerging with high growth rates. These markets include extreme sports market and the corporate merchandise market.

The athletic footwear industry consists of shoes for a variety of uses. Running, walking, aerobic, hiking, biking, gym, and shoes for various sports are considered athletic footwear. The athletic footwear forecasted to grow at a CAGR of 2.1% between 2016 and 2022. The demand for athletic footwear will continue to increase over the next seven years. This demand is fueled by the change in populations around the world. The increase in urbanization will continue to increase the demand for athletic footwear.

Seeking Behaviour Although Nike is the market leader in sports shoes, this doesn't guarantee consumers will switch to competitors alternatives. There are consumers who switch brands in an attempt to be different. This is often due to changes in fashion 4.6 Consumer Decision Making in the sports shoe market, for a running shoe: Total Set