Globalisation Effects on Footwear

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  • Published : November 29, 2012
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Contents
1.IntroductionPage 2
2.Methodologypage 2
3.ResultsPages 2-3
4.DiscussionPage 3-5
4.1Critical analysis of top ten Page 3
4.2Background on GlobalisationPage 3
4.3Five topics I chosePage 3-4
4.3.1The role of the W.T.OPage 4
4.3.2The Impact of Trading BlocksPage 4
4.3.3Globalisation of productionPage 4
4.3.4Ethical IssuesPage 4
4.3.5Joint Ventures and Strategic AllianncesPage 5
5.ConclusionPage 5
6.ReferencesPage 6
7.BibliographyPage 6

1. Introduction
The following report has a key primary objective; this is to discuss the effects of globalisation, and how it has an effect on the footwear industry. Globalisation has no specific definition, I believe the best two ways for it to be defined would be, “the death of distance” (Frances Cairncross) and the other definition is, “Globalisation is the integration of economies through markets across frontiers” (Martin Wolf). The reason I chose to use the industry of footwear is because, firstly I find the topic very interesting, and secondly the market is dominated by several company’s which means we can clearly see globalisations effects on this industry with how the proportion of market shared by these has changed. 2. Methodology

The main method which implemented has been through the use of market analysis websites, such as; mintel global market navigator, and GMID Global Market Information Database. I have also been using a number of other online sources, such as some power point presentations, and also the use of textbooks have been incredibly helpful in understanding the theory of globalisation. 3. Results

The top two companies were fairly predictable, with ‘Nike Inc’ having the greatest market share with 6.4% in 2010, second was ‘Adidas AG’ with 3.5%, these two companies had a significantly higher amount than any other company in the market, with the third top company being ‘Heinrich Deichmann-Schuhe GmbH & Co KG’ having a 1.7% share, the next seven companies are; ‘Collective Brands Inc’, ‘PPR SA’, ‘Bata LTD’, ‘Belle International Holdings LTD’, ‘New balance athletic shoe Inc’, ‘Skechers USA Inc’ and finally the tenth top global company is ‘Vulcabrás SA’. All this information was provided by Global Market Information Database. As you can see from the following pie chart which was also provided by the site, how the market is primarily dominated by the companies of Nike and Adidas, this is mainly due to the fact that these companies also own other brands, for example Nike own Converse and Umbro. This pie chart however does have one limitation as it only shows the top nine global companies and seems to misplace ‘Vulcabrás SA’, but however it is still incredibly helpful. These are figures from the end of 2010, if we compare these to the figures at the end of 2006 on the pie chart on the folloing page, we can somewhat understand the effect globalisation has had on this industry, we can see that all of these companies had an increased company share, this shows that the effects of globalisation are present in this situation as all the top ten companies are benefiting and increasing their company shares as it is becoming increasingly easy to trade across the world. Not only that it is also becoming increasingly cheaper to produce as these bigger companies can move to countries and take advantage of cheap labour. ( I will also add more comparisons into my final report, the main aspects of the final report will include, the way in which companies; ‘PPR SA’ and ‘Collective Brands Inc’ entered the market and developed leading company shares.

4. Discussion
4.1I will start the discussion section similarly to how I finished the previous section, I will firstly analyse the top global companies in more depth, I will analyse this data I have provided in greater depth, and I will also do extra research from the use of other...
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