Athletic Footwear Industry Analysis

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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 316211 316211 316219 316219 316219 316219 316219 316219 316219 316219 3021 3021 3149 3149 3149 3149 3149 3149 3149 3149 Description Athletic shoes, plastics or plastics soled fabric upper (except cleated), manufacturing. Athletic shoes, rubber or rubber soled fabric upper (except cleated), manufacturing. Athletic shoes (except rubber or plastics soled with fabric upper) manufacturing. Cleated athletic shoes manufacturing. Footwear, athletic (except rubber or plastics soled with fabric upper), manufacturing. Golf shoes, men’s cleated, manufacturing. Golf shoes, women’s cleated, manufacturing. Leather upper athletic footwear manufacturing. Shoes, athletic (except rubber or plastics soled with fabric upper), manufacturing. 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 Buyers S W Potential New Entrants Friday, February 24, 2012 5 W 5 Forces Model: Rivalry STRONG • Strong because industry is shrinking in the U.S. •

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