FOOTW3AR INDUSTRY - EXTERNAL ANALYSIS.pdf

footwear industry

1. External Analysis FOOTWEAR INDUSTRY

3. SKECHERS NIKEADIDASworldwide footwear,
apparel , developer and
distributor of active and
dress style shoes
RIVAL ANALYSIS aims to change lives
through sports,
whatever your game of
choice might be. one of the largest and
best-recognized global
sports and athleticwear
brands.
NIKE

4. FINANCIAL
ANALYSIS

5. NET SALES
IT IS EVIDENT THAT NIKE IS
LEADING THE INDUSTRY WITH
ITS 36 BILLION NET SALES IN 2019
RISING TO 51 BILLION IN 2023.
SKECHERS, SHOWS A
CONSISTENT AND GROWING
TREND IN ITS NET SALES.

6. CURRENT RATIO
THE CAGR OF CURRENT ASSETS IS
GREATER THAN THE CAGR OF
CURRENT LIABILITIES IN BOTH
SKECHERS AND NIKE WHICH
EXPLAINS A HIGH CURRENT RATIO.
ADIDAS HAS A -1.19% CAGR IN
ITS CURRENT ASSETS WHILE
THE CAGR OF ITS CURRENT
LIABILITIES IS 4%.

7. QUICK RATIO

8. CASH RATIO

9. LIABILITIES RATIO
ALL FIRMS’ LIABILITIES RATIO
FALL BELOW 1. SKECHERS
HAS AN AVERAGE LIABILITIES
RATIO OF .44, THE MOST
SECURE AND LESS
LEVERAGED. NIKE AND
ADIDAS HAVE RATIOS OF .63
AND .67, RESPECTIVELY.

10. LIABILITIES RATIO
ALL FIRMS’ LIABILITIES RATIO
FALL BELOW 1. SKECHERS
HAS AN AVERAGE LIABILITIES
RATIO OF .44, THE MOST
SECURE AND LESS
LEVERAGED. NIKE AND
ADIDAS HAVE RATIOS OF .63
AND .67,RESPECTIVELY.

11. GROSS MARGIN
IN TERMS OF THEIR
AVERAGES, ADIDAS
PERFORMED BEST
WITH 0.50. NIKE AND
SKECHERS’ ARE ONLY
AT 0.44 AND 0.49,

12. RETURN ON SALES

13. RETURN ON ASSETS

14. RETURN ON EQUITY

15. INVENTORY TURNOVER
NIKE OUTPERFORMS
SKECHERS AND ADIDAS
WITH AN AVERAGE RATIO
OF 3.5. ON AVERAGE,
SKECHERS SLIGHTLY
OUTPERFORMS ADIDAS
WITH AN AVERAGE RATIO
OF 2.5 COMPARED TO
ADIDAS’ 2.4

16. ASSET TURNOVER
NIKE, WITH AN AVERAGE
ASSET TURNOVER OF 1.37,
OUTPERFORMS SKECHERS
AND ADIDAS WITH AVERAGE
RATIOS OF 1.07 AND 1.04,
RESPECTIVELY.

17. DUPONT ANALYSIS
IN THE DUPONT ANALYSIS, WE
CAN SEE THAT THE ROE OF NIKE IS
SIGNIFICANTLY HIGHER
COMPARED TO ADIDAS AND
SKECHERS AT 0.413, 0.155, AND
0.149, RESPECTIVELY.

18. VALUE CHAINVALUE CHAIN
ANALYSISANALYSIS

19. EXTENSIVE
SUPPLIER NETWORK
EXTENSIVE
SUPPLIER NETWORK
PRIMARY ACTIVITIES
Inbound Logistics
EXTENSIVE
SUPPLIER NETWORK

20. PRODUCTION
PLANNING &
SCHEDULING
QUALITY CONTROL
PRIMARY ACTIVITIES
Operations
PRODUCTION
OVERSIGHT
QUALITY CONTROL
PROCUREMENT AND
SUPPLY & DEMAND
MANAGEMENT
SUPPLIER
MANAGEMENT
SUPPLIER
RELATIONSHIP
MANAGEMENT

21. PRIMARY ACTIVITIES
Outbound Logistics
DISTRIBUTION
CENTERS
MULTI-CHANNEL
DISTRIBUTION
APPROACH
DISTRIBUTION
CENTERS
MULTI-CHANNEL
DISTRIBUTION
APPROACH
DISTRIBUTION
CENTERS
MULTI-CHANNEL
DISTRIBUTION
APPROACH
JOINT VENTURE
WITH HF
LOGISTICS

22. PRIMARY ACTIVITIES
Marketing & Sales
SPONSORSHIP OF
ATHLETES AND NUMEROUS
SPORTS EVENTS
DIGITAL
MARKETING
SOCIAL MEDIA
MARKETING
SPONSORSHIP OF
SPORTS EVENTS
ATHLETE AND
CELEBRITY
ENDORSEMENTS
SPONSORSHIP OF
SPORTS EVENTS
CELEBRITY AND
INFLUENCER
ENDORSEMENTS
FOCUS ON COMFORT
AND INNOVATION
CELEBRITY AND
INFLUENCER
ENDORSEMENTS FOCUS ON CUSTOMER
LOYALTY AND
ENGAGEMENT
EMOTIONAL
MARKETING AND
STORYTELLING
BRAND
ACTIVISM

23. PRIMARY ACTIVITIES
After-Sales Service
RETURN
POLICY
EXCHANGE
POLICY
CUSTOMER
SERVICE
RETURN
POLICY
EXCHANGE
POLICY
CUSTOMER
SERVICE
RETURN
POLICY
EXCHANGE
POLICY
CUSTOMER
SERVICE

24. INTELLECTUAL
PROPERTY
MANAGEMENT
SECONDARY ACTIVITIES
Firm Infrastructure
HEADQUARTERS
ORGANIZATIONAL
STRUCTURE
HEADQUARTERS
INTELLECTUAL
PROPERTY
MANAGEMENT
HEADQUARTERS
ORGANIZATIONAL
STRUCTURE
INTELLECTUAL
PROPERTY
MANAGEMENT

25. SECONDARY ACTIVITIES
HR Management
‘UNLIMITED’
PROGRAM
RECRUITING AND
ONBOARDING
RECRUITING AND
ONBOARDING
BUILDING AND
INVESTING TALENTS
EMPLOYEE BENEFITS
INVESTMENT IN
EMPLOYEE TRAINING
AND DEVELOPMENT
PROGRAMS
WOMEN IN
LEADERSHIP
EMPLOYEE
RESOURCE
GROUPS
RECRUITING AND
ONBOARDING
EMPLOYEE BENEFITS

26. SECONDARY ACTIVITIES
Technology Development
ADIDAS FUTURECRAFT
4D STRUNG
AI-UTILIZATION IN
OPERATIONS ADIDAS FUTURE LAB
NIKELAND
AIR MAX DN
COMFORT
TECHNOLOGY
COMPANY™

27. SECONDARY ACTIVITIES
Procurement
PROCUREMENT
TRACEABILITY
OUTSOURCED PRIMARY
SUPPLIERS AND
SUBCONTRACTORS
OUTSOURCED PRIMARY SUPPLIERS
AND SUBCONTRACTORS
PROCUREMENT
MANAGEMENT
OUTSOURCED PRIMARY SUPPLIERS
AND SUBCONTRACTORS

28. STRATEGIES

29. STRATEGIES OF
SKECHERSAcquisition of its Scandinavian
Distributor
Direct-to-Customer Growth and
Global Expansion
Diverse Brand Lineup
Diverse team of Celebrities for
Marketing
Online Presence.

30. STRATEGIES OF
NIKETarget Market
Research and Development
Pricing
Marketing

31. STRATEGIES OF
ADIDASSports and Lifestyle
Female-Consumer Attraction
Enhanced Experience
Sustainability
Digitalization

32. RESOURCES AND
CAPABILITIES
RESOURCES AND
CAPABILITIESRESOURCES AND CAPABILITIES RESOURCES AND CAPABILITIES

34. RESOURCES AND
CAPABILITIES
RESOURCES AND
CAPABILITIESRESOURCES AND CAPABILITIES RESOURCES AND CAPABILITIES

36. RESOURCES AND
CAPABILITIES
RESOURCES AND
CAPABILITIESRESOURCES AND CAPABILITIES RESOURCES AND CAPABILITIES

38. CRITIQUE CRITIQUE ON COMPANY CRITIQUE ON COMPANY

39. INDUSTRY
ANALYSIS

40. RATE: WEAK
Threat of
Potential Entrants

41. RATE: MODERATE TO STRONG
Threat of
Substitute Products

42. RATE: MODERATE
Bargaining
Power of Suppliers

43. RATE: LOW TO MODERATE
Bargaining
Power of Customers

44. RATE: STRONG
Threat of Rivalry

45. PESTLE
ANALYSIS

46. TRADE TENSIONS
Political Factors
GOVERNMENT
REGULATIONS
POLITICAL ISSUES
OR CONFLICTS
TAX POLICY

47. ECONOMIC
DOWNTURNS
Economic Factors
EXCHANGE RATES
EMERGING
MARKETS
LABOR COSTS
CONSUMER
SPENDING POWER

48. SOCIAL INFLUENCE
ON CONSUMER
BUYING BEHAVIOR
Socio-cultural Factors
SHIFTING CONSUMER
DEMAND FOR HEALTH
& WELLNESS
INCREASING DEMAND
FOR SUSTAINABILITY

49. ADVANCEMENTS IN
MANUFACTURING
Technological Factors
E-COMMERCE GROWTH
DIGITAL MARKETING AI-POWERED SHOES

50. INTELLECTUAL
PROPERTY PROTECTION
Legal Factors
LABOR LAWS

51. SUSTAINABILITY
CONCERNS
Environmental Factors
CARBON FOOTPRINT &
WASTE MANAGEMENT

52. STRATEGIC GROUP
MAP

54. FUTURE KEY
SUCCESS FACTORS
(KSFS)
PRODUCT DESIGN
AND QUALITY
BRAND IMAGE
AND REPUTATION
EFFECTIVE
MARKETING
STRATEGIES

55. FUTURE KEY
SUCCESS FACTORS
(KSFS)
MULTICHANNEL
DISTRIBUTION
SKILLED
WORKFORCE
EFFICIENT
SUPPLY CHAIN
MANAGEMENT

56. FUTURE KEY
SUCCESS FACTORS
(KSFS)
STRONG COMMITMENT TO
RESEARCH AND
DEVELOPMENT (R&D)

57. AN EXTERNAL ANALYSIS ON THE FOOTWEAR
INDUSTRY