Question

Please complete a one page Industry-wide Segment Analysis on the global lifestyle and performance footwear industry (i.e. companies like nike, adidas, and skechers but needs to highlight entire industry).

1. Economic

2. Demographic

3. Global

4. Sociocultural

5. Political/Legal

6. Technological

Answer 1

Answer:

• Economic: The global economy is now on a growth trajectory with a growth rate of 3.7% per annum. This has created growth opportunities for the companies like Nike, Addidas and so on that operates global lifestyle and performance footwear industry as more economic activity indicates more potential for consumption of lifestyle related products. But at the same time the global inflation has gone up to 6.4% which can negatively impact the consumption capacity of the consumers and hence will also have negative impacts on these companies.
• Demographic: The median age for global population is 30.6 years which indicates a relatively young population which is in the age group that is earning. Therefore this will positively impact the industry at the global level.
• Socio cultural: Across the globe the trend for healthy lifestyle is increasing and hence there is a rise in the demand for sports and workout related lifestyle products like T shirts, sports shoes and other accessories associated with physical activities like running and so on. This will positively impact the industry growth.
• Political/legal: The political climate across the globe is not very encouraging for the industry because of the certain global political issues. These issues include trade war between U.S and China, tensions between U.S and North Korea and Iran, Brexit and so on. These situations may have a negative impact on the global trade.
• Technological: IT technologies and internet has changed the way in which business was carried out earlier. The online retailing is on the rise and it has created new opportunities for the companies in this industry. Online mode is used by many companies like Nike to increase their reach to the customers.