BARGAINING POWER OF

SUPPLIERS
Bargaining power of supplier is LOW.
There are a lot of suppliers who offer
the required raw material hence, they
are not in a state of bargain.
The power lies with the buyer who will
fxed. choose any supplier that is according
hence our prices will be to their prefernce and that provides
competitor is present good quality raw material in a
unique therefore no direct reasonable price.
concerned the idea is
As interchangable shoes are
fxed.
RIVALRY AMONG
because all the brands keep the prices
But in footwear industry, it is LOW
COMPETITORS

one that seems suitable.
* The rilavlry among competitors is
can easily change any supplier and select
HIGH in the footwear industry as the
Large number of suppliers hence. buyers
competiors can easily imitate and
produce the same product.
bargaining power of buyers is higher.
Generally in a Pakistani market,
*But in case of interchangeable
shoes is concerned , the rivalry is
BARGAINING POWER OF BUYERS
LOW as we have the frst mover
advantage in Pakistan.
*Also in the footwear industry the
differentiation factor is not present
THREAT OF NEW ENTRANTS hence rivalry is intense but as the
There is moderate threatdifferentitaion
of new factor is present in
market entrants as producing interchangeable shoes
there are large numberhence, rivalry is less.
of competitors
competing in the market without
leaving any gap.
New entrants should need to cover all products is LOW.
of the barriers like economies of scale, market hence the threat of substitue
investment requirements and But as the interchangeable are new in
switching costs in order to enter in the
market.
and also simple shoes are present.
shoes are substitute of handmade shoes
In the footwear industry currently there substitutes is HIGH as machine made
are no large competitors coming in. In the footwear industry, the threat of
THREAT OF SUBSTITUT PRODUCTS

PORTER FIVE FORCES

PEST ANALYSIS
 POLITICAL FACTORS
Political environment is not
sustainable.
No special trade restriction for
shoes industry
There are no hard and fast rules
and restrictions or political
barriers for the Pakistan footwear
industry and there are not as
such political aspects that can
affect the industry much.
There are also no many difficult
formalities to import or export in
footwear industry.
Imports from China is penetrating
rapidly because of low
manufacturing cost. Hence, the
inorder to promote local
manufacturing Government
should impose trade restriction
on imports of shoes from china.
SOCIAL FACTORS
In Pakistan the life style of
people is changing very quickly.
People now prefer western life
style rather than the traditional.
Everyone wants that he/she
wear new shoes at every
occasion.
People think footwear in terms of
fashion like their other
fashionable items.
Our business is directly related
to social values, trends and
fashion.
. If there is any change or even a
little shift in the recent fashion
will affect our business.
In this case we have to re-train
our employees to make them
capable of recent demand of
manufacture according to the
recent fashion and demand
ECONOMICAL FACTORS
Pakistan is a developing country
and its economic condition is
better now as compared to
previous years.
Economic crisis is hitting badly
on footwear industry.
One of the most important
problems in the growth of
footwear industry is higher
energy prices.
As the inflation rate is
increasing, prices of the raw
material might increase which
increases the price of footwear
and manufacturing rates, this
will reduce the buying power of
the consumer and there will be
less consumer who will purchase
footwear frequently and it will
affect the proft margins.
The footwear industry in
Pakistan is getting efficient and
the buyer economic condition is
getting better.
TECHNOLOGICAL
FACTORS
In Pakistan, the use of
technology in the footwear
industry is very low because
people prefer to buy handmade
shoes.
A big reason for not involving
technology is that in ladies
footwear industry, the designs
change rapidly and with this
fast pace, machines cannot be
changed.
But technology can play role in
the cutting and pressing the
sole and uppers.
Initially, we would do our
production without using any
technological machines but in
the upcoming years, we have
plans to adapt and use
technology in our production in
the future as per our business
went grow.