Situation Analysis

a. Customers:
The Athletic/ sports shoes market in the USA, predominantly the serious runners who usually
carried high perception of technical excellence for Pacer Shoes. Many of Pacers customers had
an emotional attachment to the old designs.
b. Competitors
Industry giants in the Athletic-shoe market usually targeted the broad market of casual runners
and walkers. Such customers were more often lured through flashier designs rather than technical
excellence.
c. Company
Pacer is a 25-year old entrepreneur driven company in the athletic-shoe market which was
primarily catering to a small niche base of serious runners with the USP of technical excellence.
d. Context
Anticipating customer erosion in the existing niche market, Pacer have expanded its horizon into
the broader market of walkers and joggers, without a substantive competitive advantage, such as
low-cost production, flashier designs, superior marketing clout, or powerful distribution network.