Porter's 5 Forces

Framework for industry attractiveness: rivalry, new entrants, substitutes, supplier power, buyer power.

Rate each force High/Medium/Low for Cawan's Shoes: • Rivalry — HIGH: Nike ($51B), Adidas ($24B), Puma, ASICS, New Balance, HOKA, On Running all fighting for shelf space. • New entrants — LOW/MED: DTC brands like Allbirds proved entry possible ($150M in year 3), but scaling to Cawan's $500M needs ~$200M brand spend. • Substitutes — MEDIUM: sneakers vs. boots, sandals, barefoot shoes; running shoes vs. Peloton/at-home fitness. • Supplier power — MEDIUM: 3 Tier-1 rubber suppliers control 70% of premium outsole compound; Cawan's dual-sources. • Buyer power — HIGH: Dick's, Foot Locker, Amazon each = 8-12% of revenue; DTC (38%) is Cawan's answer. Net: attractive but not easy — Cawan's plays on brand + DTC + performance IPⓘ.