Lu's part-APA v1

INDUSTRY ANALYSIS – ATHLETIC SPORTSWEAR 1

Team Just Do It

Kimberly Vilayvanh, Lu Ning, Sharif Osman, Erich Gosch, Aditya

Vemula

University of Dallas

Author Note

This project is presented to Professor Patt Chowdhury. MARK6305. Value-Based Marketing. Intermester Spring

April 12, 2014


TABLE OF CONTENTS

Industry Analysis..............................................3-18 Abstract....................................................Customer Analysis...............................................4-6Market Analysis.................................................6-7 Industry Life Cycle.........................................Competitor Anyalysis..............................................Sustainable Competive Advantages...............................9-10 Local Business Insight.......................................Environmental Analysis .......................................10-12 Internal Assessment........................................ External Assessment.....................................11-12S.W.O.T. Analysis ............................................12-15 Strengths...............................................13-14 Weaknesses................................................. Opportunities.............................................. Threats....................................................Strategic Strategies..........................................15-17 Past Strategy.............................................. Current and Future Strategies...........................16-17Strategic Alternatives........................................17-18 Financial Responsible...................................... Being Ahead of the Game.................................... Leveraging Import and Export..............................


Abstract

Athletic sportswear, a sub-industry of the global textiles,

apparel and luxury goods industry – comprises manufacturers and

marketers of athletic footwear, apparel, and sports equipment,

who sell to end consumers all over the world through online

stores, company-owned outlets, wholesalers and franchises.

Falling raw material prices and upcoming world-wide events are

catalyzing growth in the athletic sportswear industry, which

attributes to human capital being a key resource for the athletic

sportswear. The athletic and outdoor industry depends on the

talent of its workforce to understand market trends, develop new

designs and technologies, and rapidly and successfully market new

products. Recruiting and retaining key talent is a critical issue

for competitiveness. Nike may dominate the market, but smaller

players are growing at faster rates. Consumer groups comprise of

Kids, Women, Men, and Professional athletic sectors. In

footwear, the leading major categories segmenting the global

athletic sportswear market are:

* Inserts

* Aerobics Shoes

* Athleisure Footwear

* Running Shoes

* Walking Shoes

By retail distribution, athletic sportswear can be found globally

in the geographic markets in North America, Europe, Asia-Pacific,


and Rest of the World (RoW). Store-based and Non-Store based

categories are as follows:

* Shoe Stores

* Discount Shoe Stores

* Sports and Athletic Goods Stores

* Department Stores and Chains

* Specialty Apparel Stores

* Off Pricers

* Catalog

* Teleshopping

* Internet

Team Just Do It confined to narrowing down to selecting Nike,

Inc. as a concentration for spearheading our Industry Analysis

focus. Nike not only produces footwear for general athletic use,

but they also have a strong global market share.

CUSTOMER ANALYSIS

The sportswear industry has a very specific customer base.

These customers are buying these items for specific purposes.

These purposes can range from specific athletic activities or for

a certain style statement. These sportswear companies offer a

wide variety of products in specialized footwear, sportswear, and

athletic wear. They distribute these products to a wide variety

of customers in diverse methods. Customers range from early

childhood thru active older adults. Nike for example, utilizes a

marketing concept and strategy generated from unique complex


knowledge and an understanding of how customers react to images

of lifestyle. Most other competitor companies in the sportswear

segment manufacture goods for an existing market, whereas Nike

tries to create the image first and then respond to the market

that develops.

Various athletic sportswear companies offer their products

to very diverse groups, which spread throughout the world. Nike

is a great example of this as they are currently the world leader

in athletic footwear and apparel. Nike has over 700 self-owned

retail outlets, and their brand is carried by close to 25,000 US

retailers. Nike has over 35,000 employees worldwide and they

operate in more than 160 countries. This large footprint is

consistent with their competitors. With having this large

footprint, these companies have the ability to target a very

large customer base.

To analyze the sportswear customer-base, you would have to

separate their products into multiple segments, which contains a

derivative of the industries bread and butter: athletic wear.

This would include shoes, clothing, accessories, and sports

miscellaneous items that would actually be used by a customer

while performing an activity or participating in a sport. Within

this customer segment, there are many smaller segments where

customers are utilizing these products for a specific purpose.

These purposes are specific to the activity the customer is


performing. The companies develop these products to be utilized

for these specific activities, such as running, basketball,

soccer, football, and other sports. These customers look and buy

products that are specific to these segments. The athletic

sportswear target audience cares mostly about functionality, but

also cares about style and quality. They are willing to pay a

higher price for a product that offers this functionality and

comfort. They are individuals that live active lifestyles and

care about how they are perceived by others. These customers

would be middle to upper class and have the means to pay for

these unique products. The targeted age groups are in the range

from tweens to millennial – age bracket [12-34] and are physical

active. This segment would not be dominated by a specific sex, as

both groups engage in the targeted physical activities.

The next customer segment analyzed is customers that

purchase these products for style and do not care as much about

functionality. While these products are still considered

athletic sportswear, they are not necessarily utilized for

physical activities. These products range from foot wear to

diverse clothing types for all seasons. They focus on appearance

and offer a customer a unique sense of style. One of the ways

these companies capitalize in this segment is associating triumph

with the apparel that they sell. They have exploited sport

celebrities’ names and accomplishments to market their products.

For example, some of the athletes contracted by Nike includes


soccer superstars Roberto Carlos, Ronaldo and Ronaldinho;

basketball legends and superstars such as Michael Jordan, Lebron

James, Jermaine O’ Neal; triathlete superstar Lance Armstrong;

and as well as Tiger Woods – the biggest name in the golf world.

Team Just Do It agrees that the foremost example of this strategy

is through their “Jordan’s” line of products. These products

associate Michael Jordan’s triumphs in his career to the apparel

with his name on it. The customer buys the item for product

recognition and wants to be seen wearing these items. Nike has

created an image through athlete’s accomplishments and celebrity,

by creating products that are associated with their

accomplishments. This strategy has psychological effect on the

customer that envisions success with the brand. This customer

segment cares about how these products look, not necessarily

perform. There is not a specific class that is targeted in this

segment. The lower-income class will save up to purchase these

products and the upper-income class will purchase as they see

fit. This segment will be more of a male dominated group with a

younger target audience. Their ages would range from 13- thru

late 20’s and they would be wearing these products as a fashion

statement.*

By providing and marketing products to such a diverse group,

the sportswear segment can create brands that all demographics

can relate to. They are unique in this segment, as most other

manufactures target a specific demographic or demographics.


Because of their differentiated products and diverse brand

recognition they are able to target to all types of demographics.

According to the American Customer Satisfaction Index

(ACSI), Nike’s customers have shown and maintained a reasonably

satisfied brand outlook through the past 10+ years. Compared to

Adidas, their main competition, they have performed relatively on

par. Nike will need to maintain a good customer satisfaction

score to increase or maintain their current customer base.

MARKET ANALYSIS

According to a new market report published by Transparency

Market Research, the article "Athletic Footwear Market - Global

Industry Size, Market Share, Trends, Analysis and Forecast, 2012

- 2018," alone, the global athletic footwear market was worth

$74.7 billion in 2011 and is expected to reach $84.4 billion in

2018, growing at a Compound Average Growth Rate (CAGR) of 1.8%

from 2011 to 2018.*

Asia Pacific is leading the athletic footwear market with

maximum share and is expected to conquer a 41.6% share of the

market in 2018, closely followed by Europe. The North America

market is growing at a relatively slower rate, due to high labor

cost, demand of superior raw material cost and strong

competition. The below depicts from Transparency Market Research:


Factors driving the global athletic footwear market include

growing awareness about healthy and active lifestyles, rising

demand for comfortable footwear, rising demand for innovative

footwear designs and technology, growing population and rising

disposable income levels. The market is projected to grow at a

Compound Average Growth Rate (CAGR) of 1.8% from 2011 to 2018,

and is expected to reach $84.4 billion in 2018. The shoe insert

market, the largest segment, holds 36% market share of the

athletic footwear market and is expected to grow at a CAGR of

1.7%.

INDUSTRY LIFE CYCLE

Globally, the athletic sportswear industry has remained in a

strong growth stage and has yet to mature overall. Due to

innovation and continuous new modernization, the industry has

continued to cycle distinctively in the growth-stage. Most

companies in this segment start out as small startup firms with a

few products and disintegrate before even reaching early growth-

stage. Some have been merged or acquired due to financial

barriers that withhold maintaining their market shares, and they


exit the industry all together (see graph ‘a’). For those that

reach maturity, the company continues to renew their marketing

strategy by extending new product innovations to capture

different usage and results and generate a new growth-stage line

(see graph ‘b’). For those leading brands that have become

relatively key players world-wide and have survived the industry

life cycle, include Nike, Adidas, Puma, and Asics.

COMPETITVE ANALYSIS

Competition in the athletic sportswear market is fierce and

continuous. Most athletic products are non-durable goods with a

short lifetime that needs to be replaced regularly. Markets

change continually, and the emergence of new types of gear or new

fashions can force changes in the marketplace. Consumers make new

purchases of footwear, apparel and gear, and fashion trends are


just as important as loss of function in triggering replacement

purchases. The global athletic footwear retail industry

experienced solid growth over the last five years and is expected

to continue its growth momentum.

The Top Four Global Athletic Sportswear Retail Companies

are:

* Foot Locker, Inc.

* Nike, Inc.

* Adidas AG

* Finish Line, Inc.

The top key players in the global athletic sportswear by

brands are as follows:

* Nike

* Adidas / Reebok

* Puma

* Asics

The above four major brands combined accounted for more than

30% market share. Nike is positioned as the leading player in the

market with an estimated share of around 20% in 2012, followed by

Adidas. Several other players such as New Balance, Sketchers,

Vans, Asics, and K-Swiss, as well as various generic brands also

have a presence in the global footwear market.*

Nike as a brand has been the undisputed leader in athletic

footwear for some time now and is several times larger than its


nearest competitor, Adidas. Despite all of its success, the

company is still managing to grow at a very impressive rate.

Nike is by far the world’s largest athletic shoe manufacture,

with an estimated market share of about 50%. The company also

sells a wide range of apparel under its own brand, and affiliated

brands such as Converse and Hurley. While Nike’s dominance of the

shoe business may be about as strong as it can get, the company

does have a lot of growth potential left in the apparel business.

SUSTAINABLE COMPETITIVE ANALYSIS

Athletic sportswear businesses are now keener than ever in

their quest for brand recognition and going global. To

consolidate its position as one of the world's largest sportswear

manufacturing centers, the industry is looking to foster market

shares by promoting both domestic and international brands in

acquisitions. Nike's classic rival, Adidas, became stronger

after the 2006 acquisition of Reebok. The sports equipment maker

is making steady progress in international expansion, and will

also benefit from a sales boost coming from the World Cup next

year, as it will be sponsoring well renowned teams such as

Germany, Argentina and Spain. However, by securing more than

half of the teams in the 2010 World Cup, including the French and

Brazilian national soccer teams, Nike reins as the favorable

brand globally among the athletic sportswear industry. This is

due to the fact that Nike’s main sustainably competitive

advantage, are their vision of innovation. The company is


committed to finding and investing in new ideas for the next

generation of consumers. For example, Nike's cash cow – the

running business unit alone is worth $3.7 billion, and this

category started as a simple inception idea.

Other sustainable competitive factors the athletic

sportswear industry share are offering state-of-the-art clothing

lines from sophisticated materials that absorb heat to

lightweight materials with water-proof factors that enhance an

athlete stride. In comparison, market sectors from Nike leads

the fragmented global athletic apparel and footwear market with

20% share, followed by Adidas at 15%. By region, the United

States remains the largest market, where Nike has 21%- 31% share

versus Adidas portion of 8%-10%. However, Adidas holds a greater

share of Emerging Markets at 32% as appose to 20% for Nike.

Despite Adidas struggle in recent quarters on sales; a

sustainable advantage for them is having strong brand recognition

because their home market is Western Europe.

LOCAL BUSINESS INSIGHT

To get local consumer insights on the overall athletic

footwear demand, particularly with the brand Nike, Sharif Osman

interviewed Mr. Chad Hanson, Nike’s Manager at NorthPark Center


in Dallas. Agreeing with Mr. Hanson’s reference to the store’s

website statement, he says, “Nike is one of the world's leading

designers, marketers and distributors of authentic athletic

footwear, apparel, equipment and accessories. With Nike Dallas,

the only Nike brand experience store in Texas, offers the best

collection of Nike product –as well as having a state-of-the art

NIKEiD studio.” NIKEiD is a sub brand that allows customers to

design and customize their Nike footwear. Customers can purchase

customized athletic footwear by visiting the Nike Dallas store or

at NIKEiD.com to personalize their shoes. NIKEiD has a

competitive sustainable advantage in offering one-of-a-kind

experience. NIKEiD offers a unique value to that of loyal

customers who are willing to spend much more for high quality and

distinctive design of their own. “Nike strategy is to keep its

customer interested in their product and keep improving

technologies to improve athletes’ performance,” said Dallas store

manager Chad Hanson.

SOCIAL RESPONSIBILITY

Corporate responsibility policies have been gaining

increasing attention from senior executives as questions of

sustainability and green agendas have come to permeate business

the world over. The financial crisis has only heightened this

trend by forcing companies to clearly identify themselves as

responsible and trustable. The athletic sportswear industry

varies in company values and vision because it is all about


marketing. In an effort to boost its social responsibility,

Adidas is planning to make "one Euro shoes" for the millions of

people around the world who cannot afford to buy shoes.

The undertaking was suggested by Nobel Prize winner Muhammad

Yunus, who is regarded as the father of microloans, which help

the poor start their own businesses and break the cycle of

poverty.

Nike’s strategy was largely propelled by a need to manage

risk. Today, their corporate social responsibility approach has

evolved from focusing on risk management, philanthropy and

compliance to one that utilizes their natural focus on innovation

to evolve Nike Inc. into a business that is more sustainable.

For Nike, it is recognizing that sustainability is a road to

future profitability. Over the past few years, Nike has been

working to understand the potential consequences to their

business and examine ways to emerge not just as a survivor, but

also with a competitive edge.

ENVIRONMENTL SCANNING

In rapidly changing environments, one rule of thumb applies

in any completive industry. If you don't adapt, you don't

endure. The below highlights some foundations of value-based

internal and external assessments of the athletic sportswear

arena (joshuaste, 2011).

INTERNAL ASSESSMENT


Marketing

* Target Market: Male and Female millennial ages 18 – 34

* Positioning: High performance shoes designed with hi-tech

features

* Have many brands and products model for each type of

consumers

* Have high allocation of advertising budget for endorser

contract, TVC, print ads, and sponsorship activities.

* Have top endorsers that are the champion in their sports

areas.

Distribution

* Being able to distribute products globally is the vehicle

of growth in the industry.

* Companies try to take the manufacturing process of their

products to the parts of world where wages and other production

costs are lower.

Research & Development

* The amount of money spent on R&D is closely connected to a

company's ability to remain innovative and bring new products

into the market.

* Innovative products are the way a company can

differentiate it and win clientele from its competitors.

Social Responsibility


* Companies do public relation activities and charity

efforts to connect with the community.

* Companies being responsible in producing Eco-friendly

products

Production capabilities

* Athletic sportswear industry producing various advanced

products such as shock absorbent shoes; heat-resistant fabrics;

or water-proof materials for consumers.

EXTERNAL ASSESSMENT

Economic forces

* Europe is changing into one currency.

* United States GDP economic growth is still recovering from

the 2008 recession.

Social forces

* Since 1970’s, customers are more brand-minded.

* Sportswear consumer preferences are changing into more

fashion-oriented.

* Young consumers and millennial demographics are the leader

in influential of buying power especially with today’s social

media and the internet.

* Since 1990’s, woman’s consumer dominated the athletic shoe

market because of the changing lifestyle.


Political forces

* World is entering global trade climate with North America

Free Trade Agreement (NAFTA) and General Agreement on Tariffs &

Trade (GATT).

* Anti-dumping regulation especially in Europe.

Technology forces

* Companies integrating advance technology system to develop

their product; for example with Nike’s continuous innovation.

* Competition strives to adopt the state-of-the art demands

of sophisticated raw materials.

Competitive forces

* Competition is tighter with the coming of Reebok and

Adidas

* Competition is happened around the world, globally, not

locally

* Athletic shoe trend is going to be fashion-oriented

S.W.O.T ANALYSIS

The athletic sportswear industry offers numerous advantages

and disadvantages based on factors of geographic area, consumer

preferences, retail distributions, and demographic buying power.


Here, Team Just Do It recognized the forefront is Nike, Inc.

They are a leading designer, marketer and distributor of athletic

footwear, apparel, equipment and accessories for a range of

sports and fitness activities world-wide. However, trailing just

behind in the industry is Adidas, Reebok, and Puma. Nike enjoys

a strong market position in most of its product segments. A

company needs to be a step-ahead of their competitor in

strategizing product, place, promotion, packing, and price based

on using the concept of SWOT. Competition is intense and the

athletic sportswear industry is any competitor’s gain (Online

Mergent, 2014).

STRENGTHS

1. Robust Market Position Bolstered by Strong Brand Equity

and Leveraging Strong Brand Portfolio

a. The company enjoys a strong market position in most of

its product segments. For example, widening product lines coupled

with strong marketing and innovation have contributed to Nike's

rising market share from almost 14% in 2006 to around 16% in

2009. According to a leading global branding consultancy firm, in


2011, Nike was ranked 25th overall with its brand value

increasing 6% year-on-year to $14,528 million (EBSCO HOST, 2013).

b. The company's leading market position is built on its

portfolio of strong brands like adidas, Reebok and TaylorMade.

Its major brands adidas and Reebok cover the footwear and apparel

categories, providing both performance and lifestyle products.

Adidas' strong brand portfolio and enhanced retail presence

enable easier customer recall as well as help it to drive topline

growth and to attain competitive advantage over its peers (EBSCO

HOST, 2013).

2. Competent Technical Innovation in Products Enhancing

Competitive Advantage and Brand Equity between Competitors

Continued emphasis on technical innovations in the design of

footwear, apparel, and athletic equipment. Such as The adidas

Innovation Team is responsible for the development of new

technologies and concepts in all key product categories for the

adidas brand. Nike also utilizes research committees and advisory

boards made up of athletes, coaches, trainers, equipment

managers, orthopedists, podiatrists, and other experts for

consultations on designs, materials, and concepts for product

improvement (joshuaste, 2011).

3. Broad Distribution Network


Nike offers its products through a wide distribution channel

across the globe. Meanwhile, Adidas sells its products in

virtually every country around the world.

The wide distribution channel helps in on-time delivery of

the products across the countries, which in turn, helps companies

in managing their inventories in a better way (EBSCO HOST, 2013).

WEAKNESSES

Dependence on Third-Party Manufacturers

a. To minimize production costs, lot of footwear retailers

rely on their third-party suppliers. Nike outsources almost all

of its footwear production to independent third-party suppliers,

primarily located in Asia. And the same situation happens on

Adidas. Adidas outsources nearly 100% of production to

independent third-party suppliers, primarily located in Asia, in

comparison, the production in Europe and the Americas together

accounted for the remaining 4%. Moreover, China represents the

adidas’ largest sourcing country with about 33% of total volume

(EBSCO HOST, 2013).

b. Any failure on the part of vendor and manufacturer to

achieve and maintain high manufacturing standards could result in

manufacturing errors resulting in product recalls or withdrawals,

delays or interruptions of production, cost overruns or other

problems that could affect Nike's brand image and business. Thus,

over-reliance on third-party vendors and manufacturers makes Nike

prone to dependency risks (EBSCO HOST, 2013).


OPPORTUNITIES

1. Growth in Global Footwear Market

The global footwear market has shown positive growth in

recent years. According to the Market Line estimates, the global

footwear market grew by 5% in 2011 to reach a value of $241.3

million. In 2016, the global footwear market is forecast to have

a value of $311.1 million, an increase of 28.9% since 2011 (EBSCO

HOST, 2013).

2. Low Threat of Substitutes

There are no real substitutes for athletic footwear. There

may be substitutes for a fashion item. But for a professional

athlete, substitutes for his shoes do not exist. He cannot switch

mainly due to his performance specifications but he has little

alternative to switch as well. A consumer is not likely to switch

and so, the threat of substitutes is very low (EBSCO HOST, 2013).

THREATS

1. Market Intense Competition

The rivalry among existing competitors is very high in this

industry. Nike, Adidas and others in this field such as Puma and

Reebok have grown tremendously in the last decade and each of

them have been offering more choice, more identity due to


endorsements by top sporting personalities and by aggressive

marketing and sales strategies. The industry is in hyper-

competition and the rivalry is extremely fierce (EBSCO HOST,

2013).

2. Growing Counterfeit Goods Market

a. The counterfeit products market has been growing in the

recent years driven by the Internet counterfeit market. The

abundance of counterfeit goods and accessories is adversely

affecting the sales of branded products. According to estimates

by the Counterfeiting Intelligence Bureau (CIB) of the

International Chamber of Commerce (ICC), counterfeit goods make

up 5% to 7% of world trade (joshuaste, 2011).

b. What differentiates the offerings of companies such as

Nike from its competitors is exclusivity; widespread counterfeits

reduce this exclusivity. Counterfeits not only deprive revenues

for these famous brands in whole industry but also dilute their

brand images (joshuaste, 2011).

STRATEGIC STRATEGIES

PAST STRATEGIES

In the past, the athletic sportswear industry was not

sophisticated and digitalized as it is in today’s marketplace.

Consumers have more options and more opportunities to test and

compare products and services before they make a decision.


Previous marketing strategies, that the athletic sportswear

partook in fifty years ago was done with traditional newspaper

prints to old-school catalog orderings. Global expansion was

very limited and launching of a sportswear product was executed

domestically. At a glance, Nike Inc., the largest seller of

athletic footwear and athletic apparel, was founded in 1964

through an investment of $500 each from Phil Knight and Bill

Bowerman. The company (then instituted as Blue Ribbon Sports –

BLS) has advanced from being an importer and distributor of

Japanese specialty running shoes to becoming a pioneer in the

design, distribution and marketing of athletic footwear.

CURRENT and FUTURE STRATEGIES

Nike, Adidas, Reebok, and Puma are the top brands in

athletic sportswear industry. Each has carved its own niche in

the industry. Nike has been a pioneer in the industry of athletic

footwear and apparel for the last two decades, holding a market

value of 43%. Adidas is the second largest maker of sporting

goods with a market share of 17%. Both Reebok and Puma are next

in line in the athletic industry. A brief summary of marketing

strategies of these brands is discussed below.

Marketing Strategies of Adidas: Their mission is to make the

Adidas group a global leader in the sporting goods industry. They

strive to create value whether it is an athlete or a fashionista.

The shareholder value ultimately takes shape in cash flow

generation and is made tangible through strong earnings and


efficient utilization of capital*. They made strategic choices

and prioritize their investments under six strategic pillars:

* Diverse brand portfolio

* Investments focused on highest potential markets and

channels

* Creating a flexible supply chain

* Leading through innovation

* Develop a team grounded in heritage

* Becoming a sustainable company

With these strategies in mind, the Adidas group created a

five-year business plan in 2010 called Route2015, which ensures

that the entire business organization works in a more disciplined

and focused manner.

Marketing Strategies of Reebok: The mission is to continue

to bring inspiration to present and future athletes, while

maintaining the company’s standard of quality for its products.

To bolster its position as a premiere sports and lifestyle brand,

Reebok intends to significantly improve and increase their

product offering at high and mid-price points to drive growth in

average selling price. Although this approach may slow down

Reebok’s development in short-term basis, they believe it enables

them to build a platform for future sales and profitability

growth.

Marketing Strategies of Puma: The mission is to become the

most desired and sustainable lifestyle brand in the market. Puma

revealed a six-phase strategy:


* Restructuration after the crisis of 2008

* Redefine the business model

* Strengthen the brand

* Product development phase

* Brand distribution

* Develop “non-Puma” brands

STRATEGIC ALTERNATIVES

Financial Responsible:

The ownership and management of business is challenging, and

keeping track of finances is one of the most obvious examples of

strategies that maneuver a business externally to consumers. To

enter any market there is a need of pertinent and proper

financial planning as well as strategic management. How a

company can avoid being bankrupt, merged, or exit the market

completely is important to stockholders and shareholders who are

interested in determining the value of a company they are part

owners of. The investment of being financially responsible can

result to increasing existing market.

Being Ahead of the Game:

Another important strategic alternative for a company is

being a step ahead of the competition. Competitors or potential

competitors furiously guard their shares in the markets. How a

company can harvest their relative market share is to continue


innovating their best product line and brand. This offensive

strategy can lead to successfully blocking competitors who enters

the markets with substitute products in the market (i.e.:

generic sportswear line). Being ahead of the game positions a

company to maintain competitive advantage in market share which

includes geographic regions, distribution channel partners, and

target market consumers. Overlooking competitor’s strategies can

be an adverse effect to a company as well. If late actions are

taken or delayed in response time to meeting the needs of “the

next big thing” consumers are demanding, then the risk results to

a loss of market share. Ask, what are the unique selling

propositions offered by the potential competitors and how these

related to you customer’s demand? If the athletic sportswear

product is similar to that of yours, then transform a better

quality, functional item to be ahead of the market.

Leveraging Import and Export:

The General Agreement on Tariffs and Trade (GATT),

negotiated from the United Nations, is meant to lower trade

barriers worldwide. Finding a company’s external market niche

and using government money, incentives and direction to assist

the private sector, benefits the company in regards to having a

solid growth strategy in terms of exports. Production

domestically includes indirect exporting (export merchant) and

direct exporting (foreign customer, agent, distributor,

representative office, foreign branch, and foreign subsidiary).


Domestically, key goals on trade for the U.S. includes reducing

the level of global playing field; total elimination of tariff

barriers; built out domestic consensus on trade policy; and

integrated in Latin America and Asia. By leveraging these goals,

domestic companies will continue to maintain a basic strategy for

their product and not discriminate against for any reason and to

use institutions such as GATT and the World Trade Organization

(WTO) to enforce them.

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