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This report delves into the competitive dynamics of the footwear industry, highlighting the bargaining power of suppliers and customers, the threat of substitutes, and the intensity of rivalry among competitors. It examines strategic group maps across different regions, emphasizing key success factors such as advertising, brand development, and customer loyalty. Recommendations include enhancing quality standards, increasing advertising budgets, and investing in brand recognition initiatives. The analysis also evaluates market share growth trends and financial performance to provide actionable insights for improving strategic positioning.
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Shareholders in Company D – Industry 43 MouniaBelkoura/Finance/December 2010 Hau Ping Cheng/Accounting/December 2010 LanKi Cheng/Business Administrations/December 2010
5 Forces Analysis • The bargaining power of supplier • Low Power Threat (High) • The bargaining power of customers (buyers) • Moderate Power Threat (High) • The threat of substitute products or services • High Power Threat (Low) • The intensity of competitive rivalry • High Power Threat • The threat of the entry of new competitors • Low Power Threat
BSG Strategic Group Map (Yr 14) North-America Europe-Africa Asia-Pacific Latin America
KSF • BSG • S/Q Rating • Advertising • Retailer Support • Real Footwear Industry • Customization • Ex. Custom shoes made possible with custom AdWords campaigns • International Expansion: Brand Development • Ex. Reebok on expansion outlook: opens another store at Mirdif City Centre in UAE • Customer Loyalty • Ex. Crossing The Line? Nike Fan Inks His Loyalty
Recommendation • Improve S/Q rating. • Spend more money on the quality of footwear. • Ex. Increase the use of superior materials. • Increase advertising budget. • Invest on brand recognition. • Ex. Celebrity, charity program. • Maintain retail support.
Citation • DePaula, N. (2010). Crossing the Line? Nike Fan Inks His Loyalty. Retrieved Oct. 14, 2010, from Sole Collector. Web site: http://solecollector.com/live/all/crossing-the-line-nike-fan-inks-his loyalty/. • Mashni, R. A. (2010). Reebok on Expansion Outlook: Opens Another Store at Mirdif City Centre in UAE. Retrieved Oct. 14, 2010, from AME Info FZ LLC, United Arab Emirates. Web site: http://www.ameinfo.com/230449.html. • Hussain, S. (2010). Custom Shoes Made Possible with Custom AdWords Campaigns. Retrieved Oct. 14, 2010, from SEO CHIEF. Web site: http://seo-chief.com/custom-shoes-made-possible-with-custom- adwords-campaigns/.