Shoe SkinsGroup 18

Macro-Market AssessmentBristol, Cuozzo, Holz, Lyman,

Patibandla, Sexton

Five Forces AnalysisSUPPLIERSLow

RIVALSModerate

BUYERSLarge Chains: HighSmall Retailers: ModerateOnline: Low

SUBSTITUTESLow

NEW ENTRANTSModerate

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 powerOnlineThreat Level : Low• Most fragmented purchasers; little power

SubstitutesSubstitutes for ShoesThreat 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 ShoesThreat 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 SkinsShoe 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 System Web site mock-up

The System• 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.