Athletic Shoes Market
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Institution
Athletic Shoes Market
Executive Summary
The major manufacturing companies for athletic shoes are Nike, Adidas and Under Armour. The companies produce shoes that can be worn at and athletic occasion and put in specifications that accommodate every customer, old and young. The shoes made favour the tastes that all the customers might have were mostly; young people prefer more stylish and colourful shoes whereas the primary concern of the old when looking for athletic shoes sort for comfort in the shoes. Increase in demand for athletic shoes has been due to factors like an increase in disposable income, Americans’ view towards weight and an increase in athletic activities both I America and all over the world.
The companies Nike, Adidas and Under Armour are faced with certain opportunities and threats. Being huge companies with a big market, companies enjoy a lot of discounts and offer sales. The companies also have higher chances of their shoes being put up on the retail shops easily due to the assured market. The companies also outsource all most of the products used for manufacturing which enables them to maintain healthy supply chains. The primary threat faced by the companies is the competition faced in retail stores and having to manage its costs.
New companies, on the other hand, face more challenges than opportunities as the athletic shoe market is an oligopoly. The major companies such as Nike, Adidas and Under Armour dominate the market, and a company might have a hard time penetrating in the market (Schmid, 2018). Since the big brands receive discounts and sales offers, the small brands suffer. A lot of capital is required to manufacture shoes that closely compare to those of the big brands which may result in huge losses. The new companies, however, enjoy the opportunity of different tastes from customers and hence get bought when in retail shops. It is therefore not advisable to create a new brand as chances of profits are low.
References
Schmid, S. (2018). Internationalization of Business: Cases on Strategy Formulation and Implementation. Springer.