Athletic shoes, or more commonly known as sport shoes, are types of footwear primarily designed for physical activity or sport-related movement. Even though sport shoes were manufactured first in 1916 by Adi Dassler, the creator of one of the most prominent shoes company, the emergence of the first eminent demand happened in 1984, when Michael Jordan signed up with Nike, Inc. Since then, the demand of the athletic shoes has been skyrocketing and become one of the most used footwear in the modern world. After some consideration, we finally came up to use sport shoes as our favorite products. Sport shoes attracted us because they have stable and high demand market, high responsiveness, and can be used primarily for everyday activities. Individuals …show more content…
To build a successful business in sport shoes, the most important key success that we need to conduct is that need to determine a theme which can attract many customers. We can either use our own concept or work with other people to design the appropriate theme. Secondly, we have to set appropriate distribution center where there are many population with many demand. Allocating distribution centers in appropriate places along with opening retail stores will increase our chance to enhance our high responsiveness to our customers. However, we need to have a large amount of modal to invest to build the retail stores. As a result, online channel can become a good source to reduce the capital cost of building the retail stores. Thirdly, information also plays an important role to ensure costumers ' satisfaction as it usually provides data about products that we are selling, This kind of information will make costumers find it easy to select shoes they want. Fourthly, we also have to determine prices according to design quality and materials that are used to manufacture. Hence, combining appropriate theme, plants, information, and price will bring bigger opportunities to be successful in shoes …show more content…
In the light of gaining attraction as a new innovative-start-up company, our company introduces not only trendy sport shoes, but also a unique model of production that accentuates a special characteristic of our brand. In addition, to ease the distribution, all of our products will be available through retail stores and online shopping. Considering other famous shoe companies such Nike and Adidas 's success in online sales (about 30%), we are motivated to provide online website with proper range of customization. Also, as a complement of the effort to increase the number of distribution and responsiveness to customers, we greatly provide a flexible direct-shipping facility. Hence, along with all of these efforts, we entirely aim to become an outstanding company that is able to compete with other prominent shoe
The Shoe Industry consists of a multitude of footwear categories, varying in utility, style and occasion. When overseeing the market for the shoe industry, we must look at the influence of all shoe trades universally to comprehensively understand how the disparities in sales relate to the needs of specific regions. Worldwide the footwear industry holds great aptitude for expansion, with a strong hold on over $256 billion in market value . When geographically segmenting the market, the United Sates represents 27.9% of the market at $71.7 billion, leading the market is Europe grasping 38.4% of the market at $98.4 billion and the Asia-Pacific region holding 19.1% of the market at $49 billion; the rest of the world makes up the remaining 14.6% of the market at $37.5 billion. Between 2008 and 2012, the average growth rate domestically has been 4.1%; in Europe and Asia-Pacific markets the growth rate was 1.7% and 4.8% respectively (see Exhibit 1).
However, this results in trade off effects which is giving up of one benefit, in order to gain another regarded as more desirable such as the price versus the quality of the sport shoes, you cannot get both at the same time. A great way to manage and regulate their manufacturing process is to hire a trusted local agent in the factories to monitor the whole process to prevent using cheap and low quality material. You or your agent can then make in-person inspections for quality and conformity to make sure the Sport shoes are not in the bad
It is found that there was not a common approach utilized in managing company’s lineup of sporting goods prior to restructuring started in 2005. Although Adidas has diversified in the sporting industry, the company still failed to realize resources fit within the business segments. Furthermore, there are integration problems between Adidas athletic footwear business unit with Salomon’s business units. As the business segments are too diverse, different raw materials and labors as well as processes are required to develop products that did not allow company to capitalize on any value chain. In serving different needs throughout the diversification, the three business segments made with different product mix has faced problems to cross promote the merchandise. In addition, through the varied demands of each business segment, there are no economie...
The global sports clothing industry is heavily fragmented with many different companies competing in it. Such brands range from basic discount brands to largely distinct high-end fashion names. Even the bigger already well-established brands have to change and adapt in order to keep up with the fluctuating needs of both wholesale and retail customers. This is extremely difficult, as consumers’ demands are becoming more and more versatile in terms of comfortable and functional apparel. This means that companies have to produce new styles of sport equipment to match those specific requirements. And pursuing such a strategy will ultimately preserve companies` market share in the industry.
Athletic shoes were originally designed for sports and other types of physical exercises. Today, they have become a pair of shoes that is used for casual everyday activities because they are so flexible, comfortable and fashionable. Athletic shoes have greater expectations than an ordinary pair of shoes. They were made to increase ones health, for running, and leisure. Athletic shoes can be traced back to the ancient Greek. Runners used to compete barefooted until the Romans mandated them to wear thin-soled sandals. The first “All-purposed athletic shoe” was designed in 1900 and it was made from canvas and featured a rubber rim (Kolecki, 2009).
An extensive research study will be initiated determining what the male customers want in an athletic shoe. These studies will take place online, by ground mail, and by telephone. Once the information is gathered the various types of men's shoes will then be developed focusing on the most popular needs determined by the survey results, which will include a question regarding price. L.A. Gear will then compare the needs of the customers to the industry leaders and determine how the leaders achieved the needs of the male customers and what opportunities L.A. Gear could use to "one up" the competition. L.A. Gear's shoes already focus on comfort, style, and fashion and will now include high performance.
At the meeting, management revealed plans to address both top-line growth and operating performance. To boost revenue, the company would develop more athletic-shoe products in the midpriced segment3a segment that Nike had overlooked...
Although we have been expanding our facilities by building extra capacity, we have not been able to contribute shoes to the private-label and therefore, we have not employed a global strategy for that market. When we are able to sell shoes to the private-label footwear industry, we will also use a global strategy for that region as well.
Most retailers know that the appearance of their stores plays a big part in determining consumer behavior. As such, they seek to use it to their advantage. Sport Chek sells various types of sports merchandise mainly to middle and upper class citizens of Canada. The company has many stores and online portals. The design of the stores communicates to customers that goods in the store are of high quality. Therefore, customers come with the expectation to pay a premium. The main elements that the store uses to influence consumer behavior include the choice of construction materials, careful choice of colors and shapes, and creative use of lighting. These elements have an impact on the affective, cognitive, and behavioral responses of potential customers. The channel strategy used by the company is effective because of Sport Chek’s strong brand name. The company can benefit more from a better channel strategy for its online shopping portal that can help it to take advantage of the global high-end sports market.
The corporation should invest more money in research and innovation since this is what has helped them to make a product that rivals their competitors. At the same time, it is imperative for them to improve their machinery for cheap labor costs which will help the company increase its production allowing it to meet the demand in the market. By improving production leading to lower costs of making shoes, apparel, and equipment, Nike will achieve higher demand assuming a quality product is maintained in that process. They will stand a better chance of competing in the industry (Hill, 2009). The organization is already in a better position for meeting the demand, customer taste, and needs. The company should improve quality by focusing on developing lightweight products that are more durable compared to those offered by the competitors. Also, Nike can keep up their success by continuing to reinvent and improve their items and continue to meet the current demand by using new technology. It can also use the Internet to communicate with consumers (Hill, 2009). By developing new technology, Nike will allow the customers to suggest and design their shoes online. To achieve this goal, it is fundamental to enhance areas such as their website to make it more user-friendly. Finally, the company should pay attention to small startup organizations that enter the
In reviewing the case of New Balance Athletic Shoe, Inc. it is clear that there are a few major problems that the company is facing. First of all, New Balance falls behind its other major competitors, Nike, Adidas and Reebok, in the area of marketing. Unlike its competitors, New Balance does not undertake celebrity endorsements. This puts them at a disadvantage when it comes to brand building. This also causes the company to lose out somewhat on gaining awareness on a global scale as it lacks endorsements in major sporting events. Most global brand names generate strong brand recognition through celebrity endorsements in sporting events that would give them the needed momentum to carry their brand name further into the global market.
One thing I like about Nike is how accessible it is. You can find Nike products just about anywhere such as Nike outlets, Dicks Sporting Goods, Khols, Macy and other big department stores, as well as online. Some companies don’t make it as easy to find and buy their products which can be a struggle. I hate when I’m in need of a certain product but companies limit their access, and I can’t get what I need when I need it. Nike makes it easy to find and buy their products at any
Main drivers for US profitability has been within women shoes, broken down in sub categories of casual (17%), dress (13%), and athletic (10%) shoes, composing roughly a 40% demand of the market. However, domestically men’s athletic shoes represent 20% of the market and show signs of increase, globally men’s athletic shoes make up 30% of the market. This increase in sales within the athletic sub-category can be lead by the increase in demand for shoes that allow easy, fast movement. Studies show that ages within 18 and 45 in the U.S. have increased physical fitness by 17% since 2006. According to the Outdoor Industry Association, outdoor footwear grew...
The ability of the management in positioning and establishing the product is a success in any company that operates for marketing and profit acquisition. Furthermore, the ability of the company and its management to complete and maintain a competitive edge among its competitor throughout the product differentiation is another basis to say that is successful. Also, innovation and the constant development on the product lines and the growing number of customers also define the corporate standing of a company. Effective branding strategy and strong brand name are an important part of the profitable business. But, all the strategies and all marketing theories can be worth nothing without the compliance of the desires of consumers.
There are many elements affecting to the success of a launching. The basic factor is to develop product that satisfies consumers’ demands and maintain the brand promise. However, consumers are not only looking for the quality of product but also concerning about the price, the promotion and so on.