Group 18 Macro-Market Assessment Bristol, Cuozzo, Holz, Lyman, Patibandla, Sexton

Five Forces Analysis SUPPLIERS Low RIVALS Moderate BUYERS Large Chains: High Small Retailers: Moderate Online: Low SUBSTITUTES Low NEW ENTRANTS Moderate BARRIERS TO ENTRY Moderate ?

New Entrants/Barriers to Entry Threat Level: Moderate Need to have manufacturing connections Startup costs moderate Need successful experience in shoe design and product development Startup in distribution connections is critical Building brand name takes successful marketing campaigns

Suppliers Threat Level : Low Many manufacturers in China and other Asian countries If they suppliers don’t have high quality at a low price, there are other competitive suppliers to meet this demand.

Buyers Large Retailers Threat Level : High Large chain stores have immense buying power ? Small Retailers Threat Level : Moderate Small retailers can exert some power Online Threat Level : Low Most fragmented purchasers; little power

Substitutes Substitutes for Shoes Threat Level : Low Going barefoot is not a safe, comfortable, hygienic – or legal – option in most industrialized nations Footwear is difficult to make on your own Substitutes for Customizable Shoes Threat Level : Low Many footwear styles – none currently instantly customizable Instant gratification missing in current substitutes Can translate model into complementary products

Rivals Threat Level : Moderate Footwear industry is fragmented Ways to compete include intellectual property or patents for shoe design and function Influx of Crocs knockoffs demonstrate potential for rampant patent infringement A unique, protected design will moderate rivalry

Industry Attractiveness Summary Summary Assessment: Moderately Attractive Not a sure bet Can support niche products Must be very thoughtful about strategy

Appendix

Shoe Skins is a unique system that makes footwear fun by allowing children to easily change the look of the their shoes any time they want. The Shoe Skin SystemWeb site mock-up

The Shoe Skins system comprises a base model casual shoe (or line of shoes) plus a removable “skin,” such as those available for laptops and cell phones. The skin will affix to a special surface on the shoe. Shoe Skins will be sold separately in many different colors and patterns and contain robust potential for licensing opportunities.