PLEASE RESPOND TO THIS, I MUST COMPLETE A PEER REVIEW ON THE BELOW. Thanks
Please demonstrate critical thinking abilities. No fewer than 200 words for post. Do not summarize the post and/or course concept(s), but perhaps comment on concepts directly applicable to your workplace.
For this response, should outside sources be used to support the content within the postings, proper in-text citations and correctly formatted references should be prepared consistent with the APA (6th edition). The list of references should be physically positioned at the end of the postings.
- Porter’s Five Forces Model and ASICS’ General Environment
Porter’s Five Forces model is a useful tool in determining the competitiveness and attractiveness of the athletic footwear industry. Assessment of the first element of the model, competitive rivalry, shows that there is stiff competition among the industry players. This is because the most widely sold shoe designs available in the market are not patented. With only a few designs with patents, companies copy each other freely and quickly. The second element, threats of new entrants, is very low in the industry due to the cost barriers. Entry of new companies is hampered by the high costs involved in the development of a brand that sells. Existing companies dealing with other sports items are more likely to enter the athletic footwear industry than new ones. The third element, threats of substitutes, is also generally low. The demand will therefore continue to grow. The fourth element, bargaining power of suppliers, is largely limited because of the availability of diverse athletic shoes manufacturers in different countries. The last element is bargaining power of buyers. Unlike individual customers who are loyal to particular brands, wholesale customer can substitute the product of one company for another. They have a significantly higher bargaining leverage.
ASICS is a major player in the athletic footwear industry. It faces two main general environment trends: global competitive forces and social/cultural forces. According to Verry (2015), ASICS is facing fierce global competition especially in the United States where it has had to close 13 stores. The company is also struggling to win customers in societies where established brands such as Adidas and Nike are preferred.
Dyer, J., Godfrey, P., Jensen, R., & Bryce, D. (2016). Strategic management: Concepts and tools for creating real world strategy. Hoboken, NJ: John Wiley & Sons, Inc.
Verry, P. (2015). How ASICS’ new CEO is overcoming the company’s challenges. Footwear News. Retrieved from http://footwearnews.com/2015/focus/athletic-outdoo…