Athletic Footwear Industry Analysis

Athletic Footwear and

Apparel Industry

GROUP 7:

Kirsten Ross

April Rust

Wenjun Zhao

Elizabeth Poe

Xaio Li

Juexin Feng

Friday, February 24, 2012

*link for photo: Deviantart nike

1

NAICS/SIC Codes

NAICS code SIC Code

Description

316211

3021

Athletic shoes, plastics or plastics soled fabric upper (except cleated), manufacturing.

316211

3021

Athletic shoes, rubber or rubber soled fabric upper (except cleated), manufacturing.

316219

3149

Athletic shoes (except rubber or plastics soled with fabric upper) manufacturing.

316219

3149

Cleated athletic shoes manufacturing.

316219

3149

Footwear, athletic (except rubber or plastics soled with fabric upper), manufacturing.

316219

3149

Golf shoes, men’s cleated, manufacturing.

316219

3149

Golf shoes, women’s cleated, manufacturing.

316219

3149

Leather upper athletic footwear manufacturing.

316219

3149

Shoes, athletic (except rubber or plastics soled with fabric upper), manufacturing.

316219

3149

Vinyl upper athletic footwear manufacturing.

Friday, February 24, 2012

2

Major Economic Characteristics

of the Industry

• Billion dollar industry

• This market is beginning to decline somewhat,

however experts expect there could still be

some small bursts of growth occasionally.

• Characterized by having a small number of

large players.

Friday, February 24, 2012

3

Industry Driving Forces

• Fashion trends (+)

• Change in society (healthy lifestyle) (+)

• Changes in consumer sports preferences

(sport popularity) (++)

• Changes (rise) in manufacturing costs (--)

Friday, February 24, 2012

4

5 Forces Model

Substitute Products

(of firms in other industries)

M

Suppliers of

Key Inputs

M

Rivalry

Among

Competing

Sellers

S

Buyers

W

W

Potential

New

Entrants

Friday, February 24, 2012

5

STRONG

5 Forces Model: Rivalry

• Strong because industry is shrinking...