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

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

3. New Entrants/Barriers to Entry Threat Level: Moderate Manufacturing and Distribution connections are critical Moderate Startup costs Experience in shoe design and development Building brand name takes successful marketing campaigns – Crocs, Heelys,

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

5. 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 End consumers: Boys and girls ages 4-11 & Adult making the buying decision

6. Substitutes Shoe Substitutes: Threat Level : Moderate Variety of styles in sandals, flipflops, sneakers, boots, shoes, etc. Superman & Batman sneakers vs. Superman and Batman Skins Customizable Shoe Substitutes: Threat Level : Low Many footwear styles – none currently instantly customizable Instant gratification missing in current substitutes Can translate model into complementary products

7. 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

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

9. Appendix

10. 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

11. 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.