Individual Paper Industry Profitability Essay Example | Topics and Well Written Essays - 2000 words

Individual Paper Industry Profitability - Essay Example The country comprises of 29,360 numbers of total shoe stores and the industry employs 188,866 people (Statisticbrain, 2015). Due to the rising imports, the revenue of the footwear industry as well as the consumer spending is declining. To stay afloat especially in the footwear market, the only way is to create a presence or existence in the niche markets (Sorenson & Audia, 2000). The essay will focus on the relationship between industry structure, environmental change and industry attractiveness by taking into consideration the industrial structure and attractiveness of Aeolus Air in order to show the level of the industry profitability. The comparison of Aeolus Air, which is a hypothetical company; will be shown with other three companies which are also fictitious companies in order to reflect the management and performance of Aeolus Air on several grounds. The PEST analysis of the footwear industry of the United States has been done in order to show the positive as well as negative effect of the environmental factors. This will further help to examine the opportunities as well as threats for the footwear industry. Political factors: The competitive tax structure and the currency exposure risk hold a threat for the footwear industry. The policies of the foreign direct investment disallow full ownership of the retail stores. Therefore, these policies generally hold threat towards internationalization (Marx, 2008). Economic factors: Due to the economic recovery, the footwear industry has been growing. However, increasing rates of interest will adversely affect the growth of this industry. Rise in the imports is affecting the revenues of the companies within the footwear segment. High dependency on the overseas manufacturing as well as outsourcing is a threat for the industry. Moreover, increase in the company resources and raw materials’ shipping costs also affects