Porter's Five(5) Forces- In The Footwear Industry

Porter developed these (5) forces to be a framework in where a business

strategic manager can gain that competitive edge over its rival firms. Even though it may be viewed as simplistic, it is a powerfool tool in understanding where power lies in any given buisness situation..With such understanding ,you can see where your strengths and weakness are and how you can avoid taking the wrong steps.

1) Threat of New Entrants.

2) Bargaining power of suppliers

3) Bargaining Power of Customers

4) Competitive Rivalry between existing players

5) Threat of Substitutes

Competitive Rivalry among Existing Players.

Competiton among existing rival firms is said to be very HIGH. They want to dominate the market, so therefore there prices are considered to be Price elastic.If they dont follow the law of supply and demand, they can loose out on market share.

Threat of New Entrants

To enter into such a market should be relatively easy. There aren't much Barriers, such as law and regulations. Hence to enter in such a market is LOW. However, we must take into account that there are brand preferences that customers would prefer. Every firm wants to be in fashion and if a firm takes and innovative approach, they can dominate the marketin coming periods. With regards to start up capital,it may be little costly because start up is labor and capital intensive.

Threat of Substitutes.

A customer can easily deviate and switch to a new footwear just as quick, depending on if the price is right, its uniqeness and its quality.With so much resources available it is very easy to replicate a firms own product.Hence threat of substitutes are HIGH.

Bargaining Power of Suppliers.

In this indusrty, Suppliers may have very little power. Suppliers have MEDIUM control.Lets just take UnitedStates as an example, with our seasons winter, summer , fall and spring, firms can choose to outsource or manufacture their own products.

Bargaining Power of Consumers.

Consumers have very HIGH control in this market. Because of so much substitues and competitors, consumers have a lot of options in where to puchase their products

Mission Statements

Mission Statement of Nike.

The Mission Statement of Nike says,"To bring inspiration and innovation to every athlete in the world If you have a body, you are an athlete."
Every company needs a mission statement. Both new and exisitng companies struggle to create one. I believe a mission statement should be a strong motivational statement for staff and employees and should be a strong marketing and branding tools for its customers. A mission statement should also be a sentence that is easy to remember. The statement should be a guide for its company and 'must' identify the company to its customers. Hence, I believe that Nike has accomplished this. It is one of the leading footwear company in its industry. Nike not only targets athletes but all individuals. As its statements says, ' If you have a body, you are and athlete."