Athletic Footwear Industry Analysis
Athletic Footwear Industry Analysis
Group #1
TABLE OF CONTENTS
SECTION PAGE Table of Contents 2 Industry Analysis 3 Nike Firm Analysis – 9 Adidas Firm Analysis – 15 Asics Firm Analysis – 21 Puma Firm Analysis – 27 Mizuno Firm Analysis – 33 New Balance Firm Analysis – 39 Skechers Firm Analysis – 45
I. Industry Definition
The athletic footwear industry includes all producers of shoes designed in an athletic style or for an athletic use. We define the active footwear industry as an industry that manufactures shoes for active lifestyles. The primary focus of this analysis is on the United States market as it represents roughly 32% of the overall footwear market (PRWeb, 2012). While companies in this industry also produce athletic apparel and accessories, our primary focus will be on the company’s athletic footwear. The industry chain consists of an abundance of suppliers of raw materials that include rubber, cotton, foam and synthetic fibers followed by low-cost manufacturers located mainly in South East Asia, except for New Balance who manufactures its athletic shoes in the United States (IndexMundi). After completion of manufacturing, the shoes are distributed out to either brand specific stores, sports stores, department stores, or sold through online sales channels directly to the consumer. In order to create a more complete understanding of the athletic shoe industry, the below graph provides a visual of the market share breakdown by sales volume. However, the graph does not account for the recent merger between Adidas and Reebok, therefore, Adidas percentage should be 22% (Dolleschal, 2009).
Source: Commerzbank Equity Research
II. Porter’s Five-Force Analysis Porter’s Five-Force Analysis provides insight into the attractiveness of a particular industry. One of the five forces is Barriers to Entry or the Threat of New Entrants. This force was rated as low because brand recognition and
Group #1
TABLE OF CONTENTS
SECTION PAGE Table of Contents 2 Industry Analysis 3 Nike Firm Analysis – 9 Adidas Firm Analysis – 15 Asics Firm Analysis – 21 Puma Firm Analysis – 27 Mizuno Firm Analysis – 33 New Balance Firm Analysis – 39 Skechers Firm Analysis – 45
I. Industry Definition
The athletic footwear industry includes all producers of shoes designed in an athletic style or for an athletic use. We define the active footwear industry as an industry that manufactures shoes for active lifestyles. The primary focus of this analysis is on the United States market as it represents roughly 32% of the overall footwear market (PRWeb, 2012). While companies in this industry also produce athletic apparel and accessories, our primary focus will be on the company’s athletic footwear. The industry chain consists of an abundance of suppliers of raw materials that include rubber, cotton, foam and synthetic fibers followed by low-cost manufacturers located mainly in South East Asia, except for New Balance who manufactures its athletic shoes in the United States (IndexMundi). After completion of manufacturing, the shoes are distributed out to either brand specific stores, sports stores, department stores, or sold through online sales channels directly to the consumer. In order to create a more complete understanding of the athletic shoe industry, the below graph provides a visual of the market share breakdown by sales volume. However, the graph does not account for the recent merger between Adidas and Reebok, therefore, Adidas percentage should be 22% (Dolleschal, 2009).
Source: Commerzbank Equity Research
II. Porter’s Five-Force Analysis Porter’s Five-Force Analysis provides insight into the attractiveness of a particular industry. One of the five forces is Barriers to Entry or the Threat of New Entrants. This force was rated as low because brand recognition and
Bibliography: Driscoll, M. (2011). Apparel & footwear: Retailers & brands. Standard & Poor 's Net Advantage, GlobalData. (2012, July). Skechers USA, inc. financial and strategic analysis review . Retrieved from www.globalcompanyintelligence.com Hartman, M. (2012, November 23). Skechers warehouse showcases state-of-the-art technology Lyon, C. & Jenks, A. (2011, May). Skechers u.s.a: Q1 results show it 's still a waiting game; maintain neutral rating. Wedbush Securities, Inc. , PRWeb. (2012, October 26). Global Athletic Footwear Industry Analyzed by Transparency Market Research. PRWeb Schulte, R. (2012, November 16). Skechers toning shoe lawsuit filed PRWeb, Retrieved from http://www.prweb.com/releases/2012/11/prweb10045231.htm Sirois, Craig (2012, May). Skechers U.S.A. Value Line Publishing, Inc.