8. BARRIERS TO ENTRY
• Access to inputs - Access to inputs is easy
• Access to distribution opportunities is
limited because of the top brands which
have already recognized in market
• Switching costs are low
• Government policies –permitting
and licenses are not that strict.
9. • Intellectual property – Patents and other
types of proprietary intellectual property are
effective in limiting industry entry.
• Capital requirement- With regard to start up
capital, it may be little costly because start up
is labour and capital intensive.
• Brand Identity- dominated by branded
products and strong brand loyalty.
HIGH !
10. BUYER POWER
• Brand identity-High end brands and Large
companies in the industry set price points for
their products.
• Substitutes Available- Except
athletic,orthopedic,dancing shoes
all other types can be
substituted by normal sandals.
• Product Differentiation –Low
12. • Buyer concentration vs. industry- Buyers are
less concentrated, reduces buying power.
• Buyer Volume-Don’t buy in large quantities.
• Price sensitivity-Buyer’s are more sensitive to
price.
LOW!
13. SUPPLIER POWER
• Major firms can switch suppliers quickly
without worry of a significant decrease in
quality.
• Threat of forward integration –Low due to
high entry barriers
• Supplier concentration- Fragmented
• Any supplier that meets quality standards for
the company will be able to supply these
commodity goods.
LOW !
14. THREAT OF SUBSTITITES
• Can be
substituted
except for
athletic shoes by
normal sandals
• Switching costs
are low
MODERATE
15. RIVALRY WITHIN INDUSTRY
• More of an emphasis on non-price
competition.
• Firms instead try to increase their range of
products to capture more of the market.
• Brand image and customer loyalty is huge in
this industry, which leads to the brands
competing in advertising.