Athletic Footwear Industry Analysis - 13423 Words

Athletic Footwear Industry Analysis Group #1 TABLE OF CONTENTS SECTION PAGE Table of Contents 2 Industry Analysis 3 Nike Firm Analysis – 9 Adidas Firm Analysis – 15 Asics Firm Analysis – 21 Puma Firm Analysis – 27 Mizuno Firm Analysis – 33 New Balance Firm Analysis – 39 Skechers Firm Analysis – 45 I. Industry Definition 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,†¦show more content†¦In this industry, the Power of Buyers is low to moderate. It is considered low because athletic shoe producers have two sets of customers, direct consumers and intermediate consumers creating very low buyer concentration. Their intermediate consumers include a variety of stores from discounts stores, sporting goods stores and department stores. Due to the large size of the athletic shoe producers, the majority of intermediate consumers have very little negotiating ability and thus low power, allowing the athletic footwear firms the ability to earn an increase in profits by selling to intermediate consumers at full price. Some intermediate consumers such as large department stores and large sporting goods stores would have the size to be able to leverage some power over the athletic shoe producers giving them moderate power. The industry’s members reach direct consumers through vertically integrated self-operated brick and mortar retail stores as well as through online firms. Direct buyers have moderate power over the athletic shoe producers since there are no switching costs to go between brands. However, athletic footwear is strategically important to people if they are either athletes or people wanting to participate in high performance fitness activities, therefore giving them low power since they depend on the product to fill aShow MoreRelatedMercury Athletic Case Essay1453 Words   |  6 PagesExecutive Summary The footwear industry is highly competitive industry with fairly stable profit margins. Active Gear is a profitable firm in the industry; however Active Gear is a smaller firm than many other competitors and its small size is becoming a competitive disadvantage. The rise of large retailers has also endangered Active Gear’s growth. Mercury Athletic Footwear designs and distributes athletic and casual footwear dominantly to the youth market. 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