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Introduction

Footwear industry has emerged greatly with recognition due to branding of athletic or sportswear. In this report, the different analytical approaches for assessing the current industrial situation of the footwear market of UK will be presented. The five force analysis, VRIO framework and SWOT analysis will be applied for evaluating the performance of Nike. All these frameworks help in creating a perception about the current working structure of the organisation.

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1. Force Analysis for Footwear Market of UK

Footwear industry of UK offers huge success and growth opportunities for organizations that are working in this sector. Many multinational organizations are working in this sector and it comprise of Nike, Reebok, Puma and other medium and small sized firms are also working in this sector. Intense competition is faced by the companies that are working in this industry and it makes it essential that strategic approaches should be taken by companies so that competitive advantage can be gained for the business. Quality and price of the goods are two major factors that gives impact on the overall performance of the business.

Likewise, needs and preferences of buyers changes continuously and due to that impact is being observed on the overall performance of the organization. Along with this fashion and lifestyle of people also play a pivot role in determining sales and profitability of the business. Competition that prevail in this sector is price sensitive and it provides added advantage for the business firms that are working in this sector.

Economic growth of nation is also supporting for making increment in purchasing power of people and it is also supporting for enhancing the purchasing power of people. Herein it can be stated that footwear industry of UK is growing at a faster rate and it offers huge success and growth opportunity for people that are working in this sector. Nike, Adidas and Reebok are major players that are leading the footwear market and large market share is gained by these firms. Other than this strategic approaches are used by business for gaining big market share in this sector. Porter's five force analysis supports for identifying diverse factors that gives impact on the performance and productivity of business.

Bargaining power of buyers

Footwear industry of UK is enjoying successful period from last past decades and it is offering huge success and growth opportunities for organizations that are working in this sector. However challenges and difficulties for the existing firms also have been increases and it has made it critical that innovative practices should be adopted so that growth and success of this sector can be ensured (O'shaughnessy, 2014). Different companies that works in this sector sale footwear through Brick and mortar stores and use of online platform is also taken.

It aids for selling large number of products to the consumers and due to that impact is being observed on the overall sales performance of the company. Footwear market is divided into three segments and athletic footwear are offered in four different segments and it comprise of Insert shoes, sport shoes, backpacking shoes and hiking shoes. Bargaining power of buyers are high as there are large number of options are available in market. Factors that contributes towards bargaining power of buyers includes small size of individual buyers. Low switching cost and moderate substitute availability (Pitta, 2012). Availability of substitutes is moderate and it expedites customers for buying shoe products. These are some external forces that gives impact on the overall performance of the business.

Bargaining power of suppliers

Bargaining power of buyers is weak and major factors behind it are high overall supply and large population of suppliers. One more factor that gives influence is moderate size of individual suppliers. Other than this high supply gives impact on the performance of individual suppliers and it gives impact on the demand of the firm. In addition to that it has been observed that bargaining power of buyers is a weak force for footwear industry of UK. Along with this strategies and action plans that are formed by the company gives influence on the overall performance of organizations that are working in th


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