Marketing Strategy Of The Shoe Market

1618 Words7 Pages
Introduction In this mature shoe industry, companies compete to satisfy customers in many different ways creating intense competition for market share. It is critical to understand the nuances of strategies between companies in their attempt to compete. In this concentrated industry, a company has to find a way to be different to be successful. In the case of Industry 9, Company I should not worry about competing for price and quality with their competition, instead, they should focus on increasing their marketing efforts. They should take advantage of their celebrity endorsements and showcase these in their advertising. Market Analysis The shoe market is overproducing and all but one company is 5+ stars. The prices of the shoes in wholesale range from $37 to $57. Most groups have similar pricing and ratings, making discerning the difference between companies difficult. Due to market concentration a strategy of differentiation is the best bet for this group. They cannot be a cost leader because there are companies whose shoes are lower quality and lower price. They cannot create a niche market since five other companies also have “high quality” (7+ star) shoes. In this market each company is competing on price and quality forcing this group to find other activities to differentiate themselves from their competition. The market trends are decreasing internet prices, stable wholesale prices and stable S/Q ratings. Every company is competing to decrease their costs and
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