Kodak Key Success Factors

448 Words2 Pages
Rivalry Intense competition in athletic footwear industry. Six major firms with global business all engaged in internet sale some even offering free shipping. There is tough competition in product quality,pricing,marketing,celebrity endorsement. Threat of Substitutes Threat of substitution is low and includes other footwear such as flip-flops,sandals,boots etc. These however cannot replace sport shoes. Threat of New Entrants Difficult to compete with large economies of scale Hard to handle all levels, more experienced firms are able to disperse New entrants suffer a severe cost disadvantage Significant amount of assets needed Economies of scale also contribute to the lack of newcomers into this market. In order to have an edge over the leaders, companies must be able to compete at all levels such as reasonable pricing, efficient production, and high product quality. These things are difficult to achieve without the resources of an established manufacturer. Bargaining Power of Suppliers Raw materials required are leather, rubber and cotton. There is an abundance of suppliers currently available. Bargaining power of Buyers Large number of buyers with high bargaining power.Continous innovation and development of new products with high quality is essential for success. Needs and demands of customers are constantly changing. The company needs to invest in R & D to come up with innovative models to stay at consumer’s top choice. Generic Strategy is differentiation Swot Threats DaBest is exposed to the international nature of trade so it sells its product in different currencies which destabilizes the costs and margins for profits over long periods of time. This type of exposure may cause DaBest to be manufacturing and/or selling at a loss, although that is not the case for a giant as itself. Price Sensitivity Consumers are constantly shopping
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