1. THE SWOT ANALISYS OF THE POLISH LEATHER AND FOOTWEAR INDUSTRIES
Lodz, 7th April 2005
Polish Chamber of Shoe and Leather Industry

2. STRENGTHS - 1 tradition relatively high workforce qualifications (F)
relatively high products quality
brand development (brands awareness among the consumers, POS promotional activities development) - (F)
rationalisation of the production management - subcontracting (F)

3. STRENGTHS - 2
Market oriented production coherent with fashion trends (F)
Law direct workforce cost and good workforce qualifications (L)
Free production capacities

4. WEAKNESSES - 1
Insufficient access to raw materials - lack of local raw material caused by high cattle import (L)
Unused production capacity - excessive production capacities, law workforce productivity caused by improper work organisation
Access to capital - missing working capital, missing funds for investments and modernisation
Law or decreasing local markets share because of weak offer adjustment to the market demand and needs (L)

5. WEAKNESSES - 2 Other factors: no brands (L)
undeveloped distribution channels
no (L) or very poor (F) marketing skills
management problems
law flexibility to customer demand (L)
no co-operation
no will to develop and raise employees’ professional qualifications

6. WEAKNESSES - 3
Little understanding or no understanding for the necessity and benefits coming from sector’s consolidation and common operation
Liabilities - very long payment terms

7. CHANCES - 1 Access to EU markets: Access to eastern markets
easier EU markets penetration
equal law and chances
possibility of the access to the Baltic countries markets
Access to eastern markets

8. CHANCES - 2 Capital and investments inflow
EU structural funds !!!!!!!!!!!!!!!!!!!!!!!
Direct foreign investments
credit guarantees and trade insurance market development

9. CHANCES - 3 Market tendencies
fashion and lifestyle tendencies - come back to the natural materials
leather articles market development
brand development (F)
increasing productivity and efficiency
new product lines
higher added products value

10. THREATS - 1
Increasing competitiveness power of the products and materials from Asian countries!!!!!!!!!!!!!!!!!!!
Retail and wholesalers’ favourable attitude towards Asian origin products
Import of finished products!!!!!!!!!!!!!!!!!!!!!!
Materials import - leather being imported by the footwear producers (L)!!!!!!!!!!!!!!!!!

11. THREATS - 2 Increasing direct and INDIRECT work costs
SMEs weak position
Missing national industrial policy
Limited society purchase value

12. THREATS - 3
Missing national programme of promotional activities for companies
Unstable and incoherent law, lack of unambiguous interpretations
unacceptable way of EU law transformation to the Polish conditions

13. THREATS - 4 Undeveloped distribution channels Subcontracting:
production relocation outside Europe
without any changes, raw materials may be exported outside the country (L)