Shoe Industry Essay Example

forces within the industry such as buyers encompassing sportsmen, amateurs, leisure walkers, and those seeking branded products.

Due to the existence of extensive product differentiation, individuals tend to prefer experimenting with different brands. Loyalty towards a particular brand may only be developed after trying all products at least once. Suppliers in this industry typically include retailers and manufacturers, with some supplier groups benefiting from having unique inputs. New entrants refer to influential industrialists seeking to penetrate this specific sector of the market. The expansion of foreign-branded segments in India has enticed major international players to enter this industry.

Major international players in India, such as Nike, Reebok, and Puma, represent a significant portion of the new entrants' category. In addition, substitutes in the Indian footwear industry, including lower-cost leather and non-leather options, contribute to the diverse demand. Furthermore, existing firms like Nike, Reebok, Puma, and Bata face intense competition and strive to distinguish their products to foster customer loyalty.

Summary: The figure above rates each of the five forces in the shoe industry on a scale of 1 to 5 to determine the level of threat they pose to players in the industry. On initial analysis, all five forces appear to pose a similar level of threat, around three. However, further examination reveals that the degree of rivalry among existing firms, supplier power, and the threat of new entrants present slightly greater threats compared to substitutes and buyer power, as shown in the figure.