Bgen 499 - Case 3

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Question Four: What Are The Key Factors For Future Competitive Success in This Industry?

Technology advantages for products and R&D:

Given the competitive intensity of continual product innovations, a successful company must demonstrate and continuously deliver value to their customer. This will be done by producing the best products. Companies are going to have to spend a lot of time and money in developing the newest and best products for their customers. This industry is highly competitive and a company will fall behind very quickly if they are not doing a lot of R&D and producing new and improved products.

Marketing:

Companies must commit large amounts of money to marketing, promotions, and advertisements. Customers want and need to be constantly reminded of the value they are getting from the products they purchase. A successful company will outfit the best sports teams, have the best TV adds, and will be convincing to customers why they are the best

Supply Chain Network:

A company in this industry, as competitive as it is, needs to be able to fill orders on a large number of platforms from online stores, whole sale stores, and outlets stores. The more efficient an industry competitor can be the faster and cheaper it can bring the products to the customers. The supply chain needs to run flawlessly and the inventory management needs to be perfect in order to be successful in this industry.

Question Five: Is This an Attractive or Unattractive Industry to be In?

I think this is a very attractive industry to be in if and only if you are one of the main competitors. The main competitors share about 80% of the market which is pretty good for them but not so good for the companies who have started to fall behind. Nike and Adidas take home about 35% of the over all revenue for this industry so for them it is very profitable. The one unattractive aspect of being in this industry is the very strong competition, players need to constantly be on their toes with R&D and producing the next new and improved product. If a company fails to do this they will be pushed out by one of the lesser companies. Over all I think this is not a place for new start-ups but more of a battle field for the top dogs to fight it out.

Resources:

Athletic Footwear Market Size And Trends | Industry Report, 2016-2024. (n.d.). Retrieved January 31, 2017, from http://www.grandviewresearch.com/industry-analysis/athletic- footwear-market

Rival- Strong

New entrants- Weak

Substitutes- Weak

Supplier- Moderate

Buyer- Moderate