Analysis of the michael porter 5 forces on ADOC company
The power of provider's negotiations:
In ADOC the raw material is the main factor for which the company would worry to produce its products, but this would not be the case, since ADOC has its own raw material manufacturing plant, this is rubber plant, it would have, bonded fibers and adhesives; and thus does not incur transport costs, customs, etc. and in this way it does not care about suppliers since they are minimal.
The power of provider's negotiations:
Buyers in this industry have little bargaining power since ADOC is characterized by handling standard prices on their products, the only way they find a reason to negotiate is when they find a defect in the product, that's when they haggle, otherwise The price is standard.
Threat of new entrants:
In business, the ADOC company has a direct threat, not because of the threat of new entrants, since it is scarce the big brand competes with ADOC because it reads shoes, par2, hush puppies, and most brands Foreigners of high renown or quality belong or have a franchise with ADOC, but the threat that ADOC could have are second-hand sellers that sell similar products at a lower price or those that sell replicas since they sell it at an attainable price.
Threat of substitute products:
A large number of substitute products exist in the market, whether different types of products, since these may include sandals, dress shoes, sports shoes, boots, shoes, etc. The advantage that ADOC has over these is that it has all these designs or styles and is a fairly complete store so your concerns are minimal.
Competitive rivalry within an industry:
Competition in the industry can be classified as follows: ADOC - Payless - MD since these are the stores that can be found in any part of the country, from east to west, so the market is governed by these three existing stores, though ADOC maintains the competitive advantage because it has more recognized styles and brands.