The Shoe Industry

Satisfactory Essays
The Shoe Industry

The shoe industry is one of the biggest moneymakers in the market, but it's facing many changes, rushes, and difficulties. The big power in the industry is
Nike inc. which all the other companies are trying to be like. Some changes are the industry as a whole is moving there factories to the far east such as China.
The reason for this is they are trying to save costs for producing there shoes by paying there workers less because they are in the far east. Nike and Reebok have already been in the east. The shoe industry not including Nike inc. is trying to make rushes to be number one, two, and three. Another rush the industry is making, is the rush for the deadline of sports shoes. In other words coming up with shoes for the sports that are in season. The difficulties the shoe industry has are making shoes that all people wear such as setting a style for both inner city people and suburb people. Another difficulty the shoe industry has is getting its stock value to rise again because all but Nike and Fila's stock has dropped. This is what the shoe industry is all about and the difficulties, problems, and advances it has.
There are four major companies in the shoe industry. The dominant industry is Nike inc.. Then going down the line is Reebok, Fila, and Adidas. Nike being the superpower has been in front of all the other industries for many years.
Right now Reebok is the closest company to Nike and is $2,459 behind in value in MIL. Nike's earnings in the last quarter leaped 24% which has pleased Wall
Street investors. With such earnings Nike announced a 2-to-1 stock split, its second in many years. Nike and Reebok are far ahead than the other companies because there factories are already in the far east, and other companies are just starting to build them. With Nike's earnings so high it'll be very hard for any of the companies to take over the number one spot. Also, it'll be hard to get the people's support in there products because most people have faith in
Nike. Reebok number two in the industry is facing many problems. First, there is friction between the management spots for Reebok. Second, Reebok is having difficulty finding sports stars to endorse there products. Finally, Reebok's stock has dropped and is still dropping. The reason for this is the people do not prefer the shoes in how they look and how comfortable they are.
Get Access