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Group 1Ba Yucheng 70409Gkanidou Eftychia 40096Han Weiqiang 70399 Ma Silin 70401Zhang Wenrong 70407
AVAPRENEURSHIP
The interviweeThe SL Footwear industryPorter’s Five Forces ModelKey Success FactorsStrategic GroupsAssessments
AGENDA
•Jacquelene Slade is
the proud owner of
one main shoe store
•She rents 4 other
stores in Shopping
Malls (Mega Mart,
Scorpian Mall)
•She is a creator
and cooperates
with 1 reseller
•She is active the
past couple of years
THE AVAPRENEUR
Dress shoes and sneakers for men and women
Creating a shoe that no one else hasCreating shoes the customers are looking forSmart pricing
STRATEGIC POSITIONING
THE FOOTWEAR INDUSTRY
SUPPLIERS
CREATORS
RESELLERS
BUYERS
MARKETING
PORTER’S FIVE FORCESSUPPLIERS
POTENTIALENTRANTS
SUBSTITUTES(free/no shoes)
BUYERS(consumers/
resellers)
INDUSTRYCOMPETITORS
(creators)
Rivalry amongexisting firms
(HIGH)
Bargaining power of suppliers (LOW)
Bargaining power of buyers (HIGH)
Threat of
new entrants
(MEDIUM)
Threat of
Substitutes (MEDIUM)
‘ The actual cost for my material is the cost of time I spend making them’
Backward
integration of
creators-in SL
shoe creators can
create their own
virtual shoes
without cost or
other limitations
Purchase of raw
material for shoe-
manufacturing is
possible but
scarce for virtual
creators
POWER OF SUPPLIERS- LOW
‘Buyers are the same as in RL, if you like shoes in RL, you also like your avatar to have shoes’
Many potential
buyers but
relatively few buy.
The older avatars
willing to spend
quite a lot on nice
looking shoes
Lots of stores that
offer anything one
can imagine
Buyers demand for
free products
POWER OF BUYERS- HIGH
Absence of economies of scale
Incumbency advantages independent of size are
quite significant
Low cost of entry
THREAT OF ENTRY- MEDIUM
Avatars can build their own shoes-shoes, though, are relatively hard to make-there are ongoing learning programs but they are time consuming
Avatars can go without shoesAvatars can get free shoes the quality of
which is not satisfactory for older avatars
THREAT OF SUBSTITUTES- MEDIUM
‘ I love to see what my competitors do, sometimes I don’t like what they do and sometimes it inspires me, but it’s more important for me to come up with an idea for a design and style I haven’t seen in SL for my own store.’
DEGREE OF RIVALRY- HIGHPiracyKeep an eye on competitorsSlow growth of the marketNumerous competitors, roughly equal in size
WHAT DO CUSTOMERS WANT? Customers want well-built, quality shoes that look nice on their
avatars. Extra functions are often quite important. Fancy shoes that they like but can’t afford in RL. Enjoy stores, where they can find new shoes
HOW DOES A FIRM SURVIVE COMPETITION? Compete primarily on combination of price-technology High competition, style, looks and quality in the spotlight Business background important & follow up latest trends WHAT ARE THE KEY SUCCESS FACTORS? Possibility of differentiation through quality and style, that can
appeal to a large portion of the population Multifunctional shoes that combine many features (sound,color) Marketing &WOM Regular exhibition of new items
SL FOOTWEAR INDUSTRY - KSFs
B&W
QUALITY
THE STRATEGIC GROUPS
AVA CHOO
SHOE CENTER
STILLETTOMOODY
PR
ICE
Low
Low High
High
STRATEGIC GROUPSAVA CHOO
B&W
QUALITY
SHOE CENTER
STILLETTOMOODY
PR
OD
UC
T
RA
NG
E
Low
Low High
High
Improve industry profitabilityFight against Piracy-
PatentsInnovation and new
designing techniquesOrganize theme
events for people who love shoes
Focus on sneakers-building skills
Excel at sneakers to come up to a sports niche’s expectations
Men’s shoesUse of marketing to
raise brand identification
ASSESSMENTSSuggestions for Shoe Center
THANK YOU