Part 1. Environmental Analysis The Globalization of Footwear Industry
External Environment
The Globalization of Footwear Industry
Features
high labor intensive
less capital and technology intensive.
slow pattern of technology changes,
footwear market does not increase rapidly.
International outsourcing structure to Asia’s countries
Nike’s Vision & History
2. Political and legal issues◎ Safety issue
In 2005, U.S. emergency center reported more than 200 thousand accidents caused by toys. Needless to say, quality improvements and handling safety issue raises cost for the firm. This becomes a great issue considering industry environment described above; aggravated by the increase in production price, coming from the increase in the material cost.
industries and healthcare activities
410.000 individual share holders holding 38% of the capital
Benoit Poiter, current chairman and CEO
Chemical industry
Cutting and welding
Environmental protection
Food beverage gases
Gases for breathing and safety
Glass, ceramics, other minerals
Hydrogen energy
Medicinal gases
Metallurgy, Rubber, plastics, pai
iii. Potential Entrants (Threat of new entrants - high)
This industry doesn’t require high initial investments and startup (fixed) costs. This is not an industry which aims to achieve economy of scales as minimum size requirements for profitable operations are not high. The maintenance costs are also low. Moreover, distribution channels are not controlled by existing players as there are many
industrial relations changes in Korea is required
within the current polarization in Korean society.
3) Social Condition (Market)
Following the IMF economical crisis, Korean's relation between labor and capital largely changed.
Growing labor union having political empowerment are a major environmental change.
4) Korea Industrial Relations problem
Repeated action and reaction w