Geox and the Footware Industry
The footwear Industry is a mature market with any International competitors. In Europe, the footwear Is dominated by many small game; medium enterprises, which gives firms more flexibility to cater to specific consumer needs. The basic drivers for consumers buying decisions include demography, disposable income, basic needs, style and new materials. Fashion trends have a major influence on the footwear industry as well as new technology. The industry Is very labor intensive and most companies follow a idealization manufacturing strategy to capture lower labor costs, The primary market segments include Sport,’Atheistic, Work and Brown.
Goes competes mostly In the Brown market UT acts as a competitor in the Athletic market because of their focus on technology. Competition is harsher in the Sport/Athletic market as it is the largest market in the footwear industry. Goes should continue to exploit new market opportunities embedded in technological innovation and should focus on allocating their resources to maximize returns. They should continue to search for ways for knowledge spill- over as It has lead to positive effects and complementary actively.
Goes needs to effectively communicate Its brand and Innovation by creating uncontested market space and a niche Goes, an Italian based company, was started as a small family handicraft firm that evolved Into a multinational footwear manufacturer. It has been operating In the footwear industry since the sass and became public in 2004.
Goes core concept for starting a footwear company was to offer high comfort footwear by applying a microprocessor membrane to the sole of the shoe to allow air moisture to exit without reentering. Goes developed its brand and position in the footwear market through its genealogical advances In footwear material. Goes dominated in the global footwear market with their cutting edge technological Innovation. However, despite their recent dominance, tenure nave Eden many changes In tenet competitive environment that could hinder their performance or slow their growth in the future.
Environmental Analysis (PEST) Observing the social aspect of the market, there has been an increasing trend towards footwear companies that targeted very narrow and differentiate market niches with a clearly definable brands and images. Additionally, there has been a detectable trend towards shoes acting as fashion and lifestyle symbols with many reputable fashion designers endorsing them. The economic landscape of the market has shifted and focused more on the rise of Southern Asian countries who have been growing very quickly over the past decade.
With the growth of the middle – and upper class, there has been an increase in demand for mid-high end shoes with reputable brands. Analyzing the technological aspect of the market, most of the technological advancements arise in the athletic and sportswear segment. The main reason for this is the consistent demand of material and fabric innovation for optimal reference. Because of the effects the fashion industry has on the footwear industry as well as the seasonality of the business, product innovation and obsolescence is very high.
After analyzing some of the major social, economic and technological aspects of the industry, Goes is in a good position to leverage new technology in order to gain a competitive advantage and outperform competition. 1. 2 Competition Analysis The current footwear industry is divided into three primary segments based on different consumer styles, which include Sports wear, Work and Brown (casual, formal ; traditional). All three segments consist of homeowners, menswear and childlessness.
The largest firms are in the sports segment, which is more concentrated due to higher impact on brand awareness and technical innovation in fabrics and materials. The U. S. Accounts for the majority of global competition including such brands as Mike, Rebook, Brown shoe, Timberland etc. Currently, the majority of footwear making companies, including the aforementioned competitors, have moved their core manufacturing activities overseas to increase productivity and take advantage lower labor costs. Goes direct competitors include Wolverine and
Geneses as both firms compete in between the Leisure and Formal/Classic market segments. However, both firms are positioned more in the mid-high to high end price points while Goes is closer to mid-high, which gives Goes a competitive advantage in terms of price. Indirect competition consists of Checkers, Brown Shoe, Timberland and other competition in the sports segment. Checkers and Brown Shoe are positioned fairly close to Goes. Checkers strategy is focused on the casual market with a mid to high price range while Brown shoe’s strategy is targeted more towards the formal wear.
Therefore, leaving a gap in the markets space for Goes to exploit new opportunities and capture new market share. 1. 3 Competitive Forces (Porters 5 Forces) Looking at the competitive rivalry in the footwear industry, there are many competitors within the industry with very low product differentiation. There is also a more mature growth rate with the market slowly becoming saturated. The potential entry Darkles wilt ten Industry are very null Decease AT ten massive Minimal investment in order to begin operating.