Who Is Southern Shoe Company's Competitors?

Such shoes coupled with good marketing strategies can be a huge success as according to

The barriers a Business must deal with, such as competitors, substitutes, customers, supplier, etc are often referred to as:

Both potential and existing competitors influence average industry profitability. The threat of new entrants is usually based on the market entry barriers. They can take diverse forms and are used to prevent an influx of firms into an industry whenever profits, adjusted for the cost of capital, rise above zero. In contrast, entry barriers exist whenever it is difficult or not economically feasible for an outsider to replicate the incumbents’ position (Porter, 1980b; Sanderson, 1998) The most common forms of entry barriers, except intrinsic physical or legal obstacles, are as follows:

Nike is the leading and yet renowned supplier of athletic apparel and shoes. The company controls close to 33% of the global athletic shoe market (Dogiamis & Vijayashanker,2009).Nike was founded by Bill Power and Phil Knight in 1962 as a Blue Ribbon Support and then was later on renamed to Nike in the year 1968 (Patrow,2003).The company supplies very high quality product in close to 100 countries with major markets being located in the U.S,U,K, Asia Pacific as well as in the Americas. The company has managed to attain its lead and legendary position via the application of innovative and yet attractive product design which is backed by quality production as well as well crafted marketing strategies.

Factors that can limit the threat of new entrants are known as barriers to entry. In this case barriers to entry are low because: there is no government intervention to prevent businesses from entering the industry, resources are abundant, and customers’ switching costs are low as well as fixed costs to start this type of business.

This case analysis will focus on the issues surround the lifestyle product company Holey Soles. Psychologist Ann Rosenberg founded the company in September 2002. She initially operated in her garage and backyard, until she recruited Joyce Groote (now current CEO of Holey Soles) and expanded the company into other parts of North America. Holey Soles focuses on creating innovative footwear made from their trademarked technology SmartCel and SoleTek, which is an injection-molded foam technology. As of July 2007, sales had grown at 300% in each of the last two years and the company was ranked number four in the 2006 Profit magazine ranking of Canada’s Emerging Growth Companies. However as they continue to operate, they

Threat of New Entry: Overall there is not a great barrier to new entry but because of the stiff competition at the top new entrants have had struggles.

Threat to new entrants: There is no barrier to entry in this industry but it might be difficult for newcomers to compete against existing well establishing companies.

Barriers to Entry: The entry barriers in the market are relatively low, making it easy to access. However, as the market is saturated it could be unlikely for new companies to decide to start new enterprises in this field.

The shoe market is completely governed by competition. There are no monopolies or any other rules defining the pricing here.

The threat of new entrants in the athletic shoe industry is very weak. Currently the market is dominated by three major competitors, and

As one of the leading companies in the athletic shoe industry, Debel has experienced success in many areas. Debel has thus far successfully differentiated themselves from other competitors. Many players in the industry seemingly began with a strategy of differentiation but suffered from tunnel vision and focused mainly on the quality of shoes being produced. To combat other differentiation focused companies in the market place, Debel has invested in not only producing high quality shoes, but also a wide range of model for consumers to choose from (488), two celebrity endorsements (Oprah Letterman and LaBron Game), and traditional marketing and retailer support. The financial outcomes of Debel’s decisions will be discussed in the following text.

There are a variety of barriers that an organization may face when entering into a particular market space. In the case of FireEye, the barriers they faced in the cyber security domain were incumbents in the market, like customers exhibiting cost sensitivity in switching from their existing service.

Our approach to developing a market-entry strategy follows a structured process, based on in-depth understanding of all aspects that feed into a commercial launch.

Barriers to entry- there can either be high barriers to entry which makes the market unattractive and hard for new entrants or there can be low barriers to enter which make it easy for new entrants in the market.