Also, there is room for brand and line extension. This leverages core brands and competencies to move into similar business. In recent years, Nike has built its Hurley and Cole Haan lines in recent years using their manufacturing and distribution competencies, and Reebok has expanded its core brand into ice hockey.
There are many threats to the industry, however. First, the slowing in the U.S. market has resulted in an increase in competition as growth prospects slow for the key firms. The industry is also subject to economic slowdown, especially the top firms, who generally operate with a premium pricing strategy. As most firms in the industry operate with a model featuring global procurement, they are at risk to increases in transportation costs, which cut into their margins.
Another risk is intellectual property rights violations. Two of the key global growth markets for athletic footwear are China and Russia, and both have terrible records with regards to protecting intellectual property. The result is a substantial threat to growth and profit prospects for major athletic footwear firms.
The greater incidence of threats corresponds with the view that the industry is generally unattractive to enter. To put it simply, the easy money has been made and there is increasingly...
Market Attractiveness: The appeal of the Nike Free is precipitated by the growth of interest in the 'barefoot running' trend, the growing proclivity of individuals to wear sneakers for reasons of fashion, and the growing footwear market in Turkey. Goals and Measurements: The goal is to penetrate the Turkish market and will be measured according to the achievement of incrementally spaced sales goals. Projected sales expectations will be measured against real sales at
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Porter's 5 forces are threat of new entrants, bargaining power of buyers, bargaining power of suppliers, substitution threats and rivalry determinants. In my opinion, as a small food retailer, you can count disadvantages vs. major food retailers in all these categories. As such, first of all, entry barriers refer to such things as economies of scale, brand identity or access to necessary input information. As a small food retailer, you are
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