Do a PESTEL analysis and a Five Forces Analysis of the Footwear Industry. (Pestel checklist and Five Force checklist).

There are six (6) categories in the Pestel framework and 4 items for EACH category and apply them to the Global Footwear Industry. When you are done with this analysis, you will have written about 24 items.

Next do a Five Forces analysis of the Global Footwear industry using the checklist provided. Go through each item in each of the Five Forces and write about them. When you are done with the items in a force, summarize by stating whether you believe the overall for is strong or weak. 

Example:  Under the five forces first two questions are:

Is there a shortage in the supplies used in production?
Do the suppliers have a unique or specialized product?

Answer these questions as well as ALL the others under each of the Five Forces.

 

Pestel checklist  (6)

1. Political factors: 

Government changes, 

Shareholder and their demands, 

Funding

Governmental leadership

2.  Economic factors:

 Disposable income 

Unemployment level Foreign exchange rates

 Interest rates

3. Social factors: 

Advertising scenarios

Ethical issues 

Consumer buying patterns 

Major world events

4. Technological factors: 

Technological development 

Research and development 

Trends in global technological advancements 

Associated technologies

5. Legal factors: 

Employment law

Consumer protection

Industry-specific regulations

Competitive regulations

6. Environmental factors: 

Ecological 

Environmental issues 

Environmental regulations 

Customer values

 

Five Force checklist (5)

1. Power of Suppliers

• Is there a shortage in the supplies used in production?
• Do the suppliers have a unique or specialized product?
• Is the product used supplied by one or many suppliers
• Is it expensive or difficult to switch from one available supplier to another?
• Are there any substitutes available for the products required?
• Does this one industry comprise a large portion of the suppliers business?
• Do a few large companies dominate the supplier industry?
• Is it economically viable for the company to vertically integrate to include the supplier business?

 

2. Threat of Substitutions

• Are there substitutes available for the company's products?
• Are the substitutes similar in quality?
• Are the substitutes similar in cost?
• Are there substantial switching costs from your company to a substitute company?
• Do customers view a significant difference in the performance of the substitute product?
• Do customers view a significant difference in the value of the substitute product?

 

3. Threat of New Entrants

• Is there a cost advantage associated with economies of scale in production in this industry?
• Is there a cost savings due to the experience of mature companies in this industry?
• Are there strong allegiances to brands in this industry?
• Are more customers drawn to one particular company over another?
• Is there an expansive network of suppliers, distributors or wholesalers require din this industry?
• Are there licensing requirements by regulatory agencies to do business in this industry?

4. Power of Buyer

• Are there high costs for a buyer to switch from one provider to another?
• Is differentiation common in this industry or are products standardized?
• Are there more buyers or sellers in this industry?
• What is the buyer demand and seller supply economics in this industry?
• How well are buyers informed of competitive aspects of products from competing companies in this industry?
• Are the products necessities or commodities?
• Do the buyers have control over how often they purchase the products?
• Are the potential buyers low, middle or high-­‐income earners?
• Do buyers purchase large quantities of this product regularly?

 

5. Rivalry of Competitors

• What is the trend of buyer demand in this industry?
• Is it less or more costly to switch from one company to another today in relation to the costs of last year?
• Are companies becoming more alike or becoming more differentiated over time?
• Are companies over or underutilized in their production capabilities?
• Are there more or fewer companies entering this market over time?
• Are companies originating from multiple countries?
• What are typical exit strategies and exit barrier sin this industry?
• What are the objectives of companies in this industry?

Answer rating: 100% (QA)

PESTEL Analysis of the Global Footwear Industry Political Factors Government changes Changes in governments and political stability can impact trade policies tariffs and regulations affecting the foot... View the full answer