Footwear Adhesive Market Insights 2025, Analysis and Forecast to 2030, by Manufacturers, Regions, Technology, Product Type
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Introduction
Footwear adhesives are specialized bonding materials used in the assembly of shoes, ensuring durability, flexibility, and comfort across applications like athletic, casual, and formal footwear. The industry is characterized by its focus on high-performance adhesives that withstand stress, moisture, and temperature variations, as well as compatibility with diverse materials like leather, rubber, and synthetics. Key trends include the adoption of water-based adhesives for sustainability, high-strength solvent-based adhesives for durability, and innovations in bio-based and recyclable adhesives to meet environmental standards. The market is driven by the global footwear industry’s growth, the rise of athleisure and sustainable fashion, increasing demand in emerging markets, and advancements in adhesive technologies that enhance production efficiency.
Footwear adhesives are critical for bonding soles, uppers, and linings, ensuring structural integrity and comfort. Water-based adhesives are gaining traction due to their low environmental impact, while solvent-based adhesives remain essential for high-strength applications in premium footwear. The market is influenced by consumer trends toward eco-friendly and durable products, with brands prioritizing sustainable materials and circular manufacturing. For example, in athletic footwear, adhesives must support high-impact performance, while in casual shoes, they enable lightweight and flexible designs.
The footwear adhesive market is further shaped by sustainability, with manufacturers adopting bio-based adhesives and low-VOC formulations to comply with REACH, RoHS, and ISO 14001 standards. The industry’s focus on performance is driving the development of adhesives with fast curing times, high shear strength, and resistance to hydrolysis. The growth of footwear production in Asia Pacific and Rest of the World is increasing demand for cost-effective and sustainable adhesives, fueled by urbanization and rising disposable incomes. Advancements in adhesive technologies, such as polyurethane dispersions and hot-melt adhesives, enhance scalability and reduce waste. Collaboration between adhesive manufacturers, footwear brands, and material suppliers drives innovation, with tailored solutions for specific footwear types. The market’s ability to address environmental and performance challenges positions it for sustained growth.
Market Size and Growth Forecast
The global footwear adhesive market was valued at USD 490–920 million in 2024, with an estimated CAGR of 5.0%–7.0% from 2025 to 2030. This growth is propelled by the footwear industry’s expansion, sustainability trends, and demand in emerging markets.
Regional Analysis
North America is projected to grow at a CAGR of 4.8%–6.8%, with the United States leading due to its athleisure and premium footwear markets. The U.S. drives demand for sustainable water-based adhesives, supported by companies like Henkel. Trends include bio-based adhesives and compliance with EPA standards.
Europe is expected to achieve a CAGR of 4.7%–6.7%, with Germany and Italy as key markets. Germany focuses on adhesives for performance footwear, while Italy drives demand for luxury and casual shoes. Trends include low-VOC adhesives and REACH compliance.
Asia Pacific is anticipated to record the highest growth at 5.2%–7.2%, driven by China, Vietnam, and India. China and Vietnam dominate footwear production, with companies like Nan Pao leading in cost-effective adhesives. India drives demand in affordable footwear, supported by urbanization. Trends include water-based adhesives and fast-curing technologies.
Rest of the World, particularly Brazil and Indonesia, is expected to grow at 4.5%–6.5%. Brazil focuses on casual footwear, while Indonesia supports athletic shoe production.
Type Analysis
Water-based adhesives are estimated to grow at a CAGR of 5.2%–7.2%, driven by sustainability trends. Trends include bio-based formulations and low-VOC designs for eco-friendly footwear.
Solvent-based adhesives are projected to expand at 4.8%–6.8%, focusing on high-strength bonding for premium and athletic shoes. Trends include fast-curing and hydrolysis-resistant adhesives.
Key Market Players
Henkel, headquartered in Düsseldorf, Germany, is a global leader in footwear adhesives, specializing in water-based and bio-based solutions for athletic and casual shoes. The company leverages polyurethane dispersions and low-VOC formulations to meet REACH and ISO 14001 standards. Henkel invests in R&D to develop fast-curing adhesives with high shear strength, supporting high-volume footwear production. Its partnerships with global brands like Nike and Adidas drive growth in Europe and Asia Pacific.
Great Eastern Resins Industrial, based in Taichung, Taiwan, focuses on adhesives for athletic and industrial footwear. The company emphasizes durable, water-resistant adhesives, leveraging hot-melt technologies for efficiency. Its sustainability efforts include recyclable adhesives, with partnerships in Asia Pacific.
Nan Pao, headquartered in Tainan, Taiwan, specializes in cost-effective adhesives for mass-market footwear. The company focuses on water-based and solvent-based solutions, investing in eco-friendly formulations. Nan Pao’s partnerships with footwear manufacturers in China and Vietnam drive growth.
Hwa Pao, based in Kaohsiung, Taiwan, focuses on adhesives for casual and athletic shoes, emphasizing flexibility and durability. The company invests in sustainable adhesives and partnerships with regional brands.
Porter’s Five Forces Analysis
● Threat of New Entrants: Low. High R&D costs and environmental compliance create barriers, with established players like Henkel dominating through brand trust and scale.
● Threat of Substitutes: Low. Adhesives are critical for footwear assembly, with no viable alternatives offering comparable bonding strength.
● Buyer Power: Moderate to High. Large footwear brands negotiate pricing, but specialized adhesives limit leverage. Smaller manufacturers rely on standardized solutions.
● Supplier Power: Moderate. Suppliers of raw materials like polyurethane hold some power, but diversified sourcing mitigates risks.
● Competitive Rivalry: High. Henkel, Nan Pao, and Great Eastern compete through sustainable and high-performance adhesives, with price competition in mass-market segments.
Market Opportunities and Challenges
Opportunities
● Sustainable Footwear Trends: Demand for eco-friendly shoes drives adoption of water-based and bio-based adhesives.
● Emerging Markets: Urbanization in Asia Pacific and Rest of the World boosts demand for cost-effective adhesives.
● Athleisure Growth: The rise of performance footwear creates opportunities for high-strength adhesives.
● Fast-Curing Technologies: Innovations in adhesive application enhance production efficiency.
● Circular Manufacturing: Recyclable adhesives align with sustainability goals.
Challenges
● Environmental Regulations: Compliance with REACH and RoHS increases costs.
● Raw Material Costs: Volatility in polyurethane prices impacts profitability.
● Price Competition: Mass-market footwear segments face intense pricing pressure.
● Technological Complexity: Developing hydrolysis-resistant adhesives requires significant R&D.
● Supply Chain Disruptions: Shortages of raw materials affect production timelines.
Growth Trend Analysis
The footwear adhesive market is experiencing steady growth, driven by sustainability and emerging markets. On August 28, 2024, Huntsman launched the AVALON® GECKO TPU portfolio for footwear soling, emphasizing sustainability. On September 5, 2024, Covestro unveiled Dispercoll® adhesives for footwear at the China Adhesive Conference, focusing on performance and sustainability. On May 1, 2025, PIC invested USD 638 million in Wanhua Yantai Petrochemical, enhancing adhesive production. On May 16, 2025, H.B. Fuller launched a manufacturing facility in RAKEZ, supporting adhesive growth in the Middle East, aligning with a projected CAGR of 5.0%–7.0% through 2030.
Chapter 1 Executive Summary
Chapter 2 Abbreviation and Acronyms
Chapter 3 Preface
3.1 Research Scope
3.2 Research Sources
3.2.1 Data Sources
3.2.2 Assumptions
3.3 Research Method
Chapter 4 Market Landscape
4.1 Market Overview
4.2 Classification/Types
4.3 Application/End Users
Chapter 5 Market Trend Analysis
5.1 Introduction
5.2 Drivers
5.3 Restraints
5.4 Opportunities
5.5 Threats
Chapter 6 Industry Chain Analysis
6.1 Upstream/Suppliers Analysis
6.2 Footwear Adhesive Analysis
6.2.1 Technology Analysis
6.2.2 Cost Analysis
6.2.3 Market Channel Analysis
6.3 Downstream Buyers/End Users
Chapter 7 Latest Market Dynamics
7.1 Latest News
7.2 Merger and Acquisition
7.3 Planned/Future Project
7.4 Policy Dynamics
Chapter 8 Trading Analysis
8.1 Export of Footwear Adhesive by Region
8.2 Import of Footwear Adhesive by Region
8.3 Balance of Trade
Chapter 9 Historical and Forecast Footwear Adhesive Market in North America (2020-2030)
9.1 Footwear Adhesive Market Size
9.2 Footwear Adhesive Demand by End Use
9.3 Competition by Players/Suppliers
9.4 Type Segmentation and Price
9.5 Key Countries Analysis
9.5.1 United States
9.5.2 Canada
9.5.3 Mexico
Chapter 10 Historical and Forecast Footwear Adhesive Market in South America (2020-2030)
10.1 Footwear Adhesive Market Size
10.2 Footwear Adhesive Demand by End Use
10.3 Competition by Players/Suppliers
10.4 Type Segmentation and Price
10.5 Key Countries Analysis
10.5.1 Brazil
10.5.2 Argentina
10.5.3 Chile
10.5.4 Peru
Chapter 11 Historical and Forecast Footwear Adhesive Market in Asia & Pacific (2020-2030)
11.1 Footwear Adhesive Market Size
11.2 Footwear Adhesive Demand by End Use
11.3 Competition by Players/Suppliers
11.4 Type Segmentation and Price
11.5 Key Countries Analysis
11.5.1 China
11.5.2 India
11.5.3 Japan
11.5.4 South Korea
11.5.5 Asean
11.5.6 Australia
Chapter 12 Historical and Forecast Footwear Adhesive Market in Europe (2020-2030)
12.1 Footwear Adhesive Market Size
12.2 Footwear Adhesive Demand by End Use
12.3 Competition by Players/Suppliers
12.4 Type Segmentation and Price
12.5 Key Countries Analysis
12.5.1 Germany
12.5.2 France
12.5.3 United Kingdom
12.5.4 Italy
12.5.5 Spain
12.5.6 Belgium
12.5.7 Netherlands
12.5.8 Austria
12.5.9 Poland
12.5.10 Russia
Chapter 13 Historical and Forecast Footwear Adhesive Market in MEA (2020-2030)
13.1 Footwear Adhesive Market Size
13.2 Footwear Adhesive Demand by End Use
13.3 Competition by Players/Suppliers
13.4 Type Segmentation and Price
13.5 Key Countries Analysis
13.5.1 Egypt
13.5.2 Israel
13.5.3 South Africa
13.5.4 Gulf Cooperation Council Countries
13.5.5 Turkey
Chapter 14 Summary For Global Footwear Adhesive Market (2020-2030)
14.1 Footwear Adhesive Market Size
14.2 Footwear Adhesive Demand by End Use
14.3 Competition by Players/Suppliers
14.4 Type Segmentation and Price
Chapter 15 Global Footwear Adhesive Market Forecast (2021-2026)
15.1 Footwear Adhesive Market Size Forecast
15.2 Footwear Adhesive Demand Forecast
15.3 Competition by Players/Suppliers
15.4 Type Segmentation and Price Forecast
Chapter 16 Analysis of Global Key Vendors
15.1 Henkel
15.1.1 Company Profile
15.1.2 Main Business and Footwear Adhesive Information
15.1.3 SWOT Analysis of Henkel
15.1.4 Henkel Footwear Adhesive Sales, Revenue, Price and Gross Margin (2020-2025)
15.2 Great Eastern Resins Industrial
15.2.1 Company Profile
15.2.2 Main Business and Footwear Adhesive Information
15.2.3 SWOT Analysis of Great Eastern Resins Industrial
15.2.4 Great Eastern Resins Industrial Footwear Adhesive Sales, Revenue, Price and Gross Margin (2020-2025)
15.3 NAN PAO
15.3.1 Company Profile
15.3.2 Main Business and Footwear Adhesive Information
15.3.3 SWOT Analysis of NAN PAO
15.3.4 NAN PAO Footwear Adhesive Sales, Revenue, Price and Gross Margin (2020-2025)
15.4 HWA PAO
15.4.1 Company Profile
15.4.2 Main Business and Footwear Adhesive Information
15.4.3 SWOT Analysis of HWA PAO
15.4.4 HWA PAO Footwear Adhesive Sales, Revenue, Price and Gross Margin (2020-2025)
15.5 TOONG I CHEMICAL
15.5.1 Company Profile
15.5.2 Main Business and Footwear Adhesive Information
15.5.3 SWOT Analysis of TOONG I CHEMICAL
15.5.4 TOONG I CHEMICAL Footwear Adhesive Sales, Revenue, Price and Gross Margin (2020-2025)
15.6 Tavorn
15.6.1 Company Profile
15.6.2 Main Business and Footwear Adhesive Information
15.6.3 SWOT Analysis of Tavorn
15.6.4 Tavorn Footwear Adhesive Sales, Revenue, Price and Gross Margin (2020-2025)
Please ask for sample pages for full companies list
Table Research Scope Of Footwear Adhesive Report
Table Data Sources Of Footwear Adhesive Report
Table Major Assumptions Of Footwear Adhesive Report
Table Footwear Adhesive Classification
Table Footwear Adhesive Applications List
Table Drivers Of Footwear Adhesive Market
Table Restraints Of Footwear Adhesive Market
Table Opportunities Of Footwear Adhesive Market
Table Threats Of Footwear Adhesive Market
Table Raw Materials Suppliers List
Table Different Production Methods Of Footwear Adhesive
Table Cost Structure Analysis Of Footwear Adhesive
Table Key End Users List
Table Latest News Of Footwear Adhesive Market
Table Merger And Acquisition List
Table Planned/Future Project Of Footwear Adhesive Market
Table Policy Of Footwear Adhesive Market
Table 2020-2030 Regional Export Of Footwear Adhesive
Table 2020-2030 Regional Import Of Footwear Adhesive
Table 2020-2030 Regional Trade Balance
Table 2020-2030 North America Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 North America Footwear Adhesive Demand List By Application
Table 2020-2025 North America Footwear Adhesive Key Players Sales List
Table 2020-2025 North America Footwear Adhesive Key Players Market Share List
Table 2020-2030 North America Footwear Adhesive Demand List By Type
Table 2020-2025 North America Footwear Adhesive Price List By Type
Table 2020-2030 United States Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 United States Footwear Adhesive Import & Export List
Table 2020-2030 Canada Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Canada Footwear Adhesive Import & Export List
Table 2020-2030 Mexico Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Mexico Footwear Adhesive Import & Export List
Table 2020-2030 South America Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 South America Footwear Adhesive Demand List By Application
Table 2020-2025 South America Footwear Adhesive Key Players Sales List
Table 2020-2025 South America Footwear Adhesive Key Players Market Share List
Table 2020-2030 South America Footwear Adhesive Demand List By Type
Table 2020-2025 South America Footwear Adhesive Price List By Type
Table 2020-2030 Brazil Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Brazil Footwear Adhesive Import & Export List
Table 2020-2030 Argentina Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Argentina Footwear Adhesive Import & Export List
Table 2020-2030 Chile Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Chile Footwear Adhesive Import & Export List
Table 2020-2030 Peru Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Peru Footwear Adhesive Import & Export List
Table 2020-2030 Asia & Pacific Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Asia & Pacific Footwear Adhesive Demand List By Application
Table 2020-2025 Asia & Pacific Footwear Adhesive Key Players Sales List
Table 2020-2025 Asia & Pacific Footwear Adhesive Key Players Market Share List
Table 2020-2030 Asia & Pacific Footwear Adhesive Demand List By Type
Table 2020-2025 Asia & Pacific Footwear Adhesive Price List By Type
Table 2020-2030 China Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 China Footwear Adhesive Import & Export List
Table 2020-2030 India Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 India Footwear Adhesive Import & Export List
Table 2020-2030 Japan Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Japan Footwear Adhesive Import & Export List
Table 2020-2030 South Korea Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 South Korea Footwear Adhesive Import & Export List
Table 2020-2030 Southeast Asia Footwear Adhesive Market Size List
Table 2020-2030 Southeast Asia Footwear Adhesive Market Volume List
Table 2020-2030 Southeast Asia Footwear Adhesive Import List
Table 2020-2030 Southeast Asia Footwear Adhesive Export List
Table 2020-2030 Australia Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Australia Footwear Adhesive Import & Export List
Table 2020-2030 Europe Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Europe Footwear Adhesive Demand List By Application
Table 2020-2025 Europe Footwear Adhesive Key Players Sales List
Table 2020-2025 Europe Footwear Adhesive Key Players Market Share List
Table 2020-2030 Europe Footwear Adhesive Demand List By Type
Table 2020-2025 Europe Footwear Adhesive Price List By Type
Table 2020-2030 Germany Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Germany Footwear Adhesive Import & Export List
Table 2020-2030 France Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 France Footwear Adhesive Import & Export List
Table 2020-2030 United Kingdom Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 United Kingdom Footwear Adhesive Import & Export List
Table 2020-2030 Italy Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Italy Footwear Adhesive Import & Export List
Table 2020-2030 Spain Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Spain Footwear Adhesive Import & Export List
Table 2020-2030 Belgium Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Belgium Footwear Adhesive Import & Export List
Table 2020-2030 Netherlands Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Netherlands Footwear Adhesive Import & Export List
Table 2020-2030 Austria Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Austria Footwear Adhesive Import & Export List
Table 2020-2030 Poland Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Poland Footwear Adhesive Import & Export List
Table 2020-2030 Russia Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Russia Footwear Adhesive Import & Export List
Table 2020-2030 Mea Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Mea Footwear Adhesive Demand List By Application
Table 2020-2025 Mea Footwear Adhesive Key Players Sales List
Table 2020-2025 Mea Footwear Adhesive Key Players Market Share List
Table 2020-2030 Mea Footwear Adhesive Demand List By Type
Table 2020-2025 Mea Footwear Adhesive Price List By Type
Table 2020-2030 Egypt Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Egypt Footwear Adhesive Import & Export List
Table 2020-2030 Israel Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Israel Footwear Adhesive Import & Export List
Table 2020-2030 South Africa Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 South Africa Footwear Adhesive Import & Export List
Table 2020-2030 Gulf Cooperation Council Countries Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Gulf Cooperation Council Countries Footwear Adhesive Import & Export List
Table 2020-2030 Turkey Footwear Adhesive Market Size And Market Volume List
Table 2020-2030 Turkey Footwear Adhesive Import & Export List
Table 2020-2025 Global Footwear Adhesive Market Size List By Region
Table 2020-2025 Global Footwear Adhesive Market Size Share List By Region
Table 2020-2025 Global Footwear Adhesive Market Volume List By Region
Table 2020-2025 Global Footwear Adhesive Market Volume Share List By Region
Table 2020-2025 Global Footwear Adhesive Demand List By Application
Table 2020-2025 Global Footwear Adhesive Demand Market Share List By Application
Table 2020-2025 Global Footwear Adhesive Capacity List
Table 2020-2025 Global Footwear Adhesive Key Vendors Capacity Share List
Table 2020-2025 Global Footwear Adhesive Key Vendors Production List
Table 2020-2025 Global Footwear Adhesive Key Vendors Production Share List
Table 2020-2025 Global Footwear Adhesive Key Vendors Production Value List
Table 2020-2025 Global Footwear Adhesive Key Vendors Production Value Share List
Table 2020-2025 Global Footwear Adhesive Demand List By Type
Table 2020-2025 Global Footwear Adhesive Demand Market Share List By Type
Table 2020-2025 Regional Footwear Adhesive Price List
Table 2025-2030 Global Footwear Adhesive Market Size List By Region
Table 2025-2030 Global Footwear Adhesive Market Size Share List By Region
Table 2025-2030 Global Footwear Adhesive Market Volume List By Region
Table 2025-2030 Global Footwear Adhesive Market Volume Share List By Region
Table 2025-2030 Global Footwear Adhesive Demand List By Application
Table 2025-2030 Global Footwear Adhesive Demand Market Share List By Application
Table 2025-2030 Global Footwear Adhesive Capacity List
Table 2025-2030 Global Footwear Adhesive Key Vendors Capacity Share List
Table 2025-2030 Global Footwear Adhesive Key Vendors Production List
Table 2025-2030 Global Footwear Adhesive Key Vendors Production Share List
Table 2025-2030 Global Footwear Adhesive Key Vendors Production Value List
Table 2025-2030 Global Footwear Adhesive Key Vendors Production Value Share List
Table 2025-2030 Global Footwear Adhesive Demand List By Type
Table 2025-2030 Global Footwear Adhesive Demand Market Share List By Type
Table 2025-2030 Footwear Adhesive Regional Price List
Figure Market Size Estimated Method
Figure Major Forecasting Factors
Figure Footwear Adhesive Picture
Figure 2020-2030 Regional Trade Balance
Figure 2020-2030 North America Footwear Adhesive Market Size And Cagr
Figure 2020-2030 North America Footwear Adhesive Market Volume And Cagr
Figure 2020-2030 South America Footwear Adhesive Market Size And Cagr
Figure 2020-2030 South America Footwear Adhesive Market Volume And Cagr
Figure 2020-2030 Asia & Pacific Footwear Adhesive Market Size And Cagr
Figure 2020-2030 Asia & Pacific Footwear Adhesive Market Volume And Cagr
Figure 2020-2030 Europe Footwear Adhesive Market Size And Cagr
Figure 2020-2030 Europe Footwear Adhesive Market Volume And Cagr
Figure 2020-2030 Mea Footwear Adhesive Market Size And Cagr
Figure 2020-2030 Mea Footwear Adhesive Market Volume And Cagr
Figure 2020-2025 Global Footwear Adhesive Capacity Production And Growth Rate
Figure 2020-2025 Global Footwear Adhesive Production Value And Growth Rate
Figure 2025-2030 Global Footwear Adhesive Capacity Production And Growth Rate
Figure 2025-2030 Global Footwear Adhesive Production Value And Growth Rate
Research Methodology
- Market Estimated Methodology:
Bottom-up & top-down approach, supply & demand approach are the most important method which is used by HDIN Research to estimate the market size.
1)Top-down & Bottom-up Approach
Top-down approach uses a general market size figure and determines the percentage that the objective market represents.
Bottom-up approach size the objective market by collecting the sub-segment information.
2)Supply & Demand Approach
Supply approach is based on assessments of the size of each competitor supplying the objective market.
Demand approach combine end-user data within a market to estimate the objective market size. It is sometimes referred to as bottom-up approach.
- Forecasting Methodology
- Numerous factors impacting the market trend are considered for forecast model:
- New technology and application in the future;
- New project planned/under contraction;
- Global and regional underlying economic growth;
- Threatens of substitute products;
- Industry expert opinion;
- Policy and Society implication.
- Analysis Tools
1)PEST Analysis
PEST Analysis is a simple and widely used tool that helps our client analyze the Political, Economic, Socio-Cultural, and Technological changes in their business environment.
- Benefits of a PEST analysis:
- It helps you to spot business opportunities, and it gives you advanced warning of significant threats.
- It reveals the direction of change within your business environment. This helps you shape what you’re doing, so that you work with change, rather than against it.
- It helps you avoid starting projects that are likely to fail, for reasons beyond your control.
- It can help you break free of unconscious assumptions when you enter a new country, region, or market; because it helps you develop an objective view of this new environment.
2)Porter’s Five Force Model Analysis
The Porter’s Five Force Model is a tool that can be used to analyze the opportunities and overall competitive advantage. The five forces that can assist in determining the competitive intensity and potential attractiveness within a specific area.
- Threat of New Entrants: Profitable industries that yield high returns will attract new firms.
- Threat of Substitutes: A substitute product uses a different technology to try to solve the same economic need.
- Bargaining Power of Customers: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes.
- Bargaining Power of Suppliers: Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm when there are few substitutes.
- Competitive Rivalry: For most industries the intensity of competitive rivalry is the major determinant of the competitiveness of the industry.
3)Value Chain Analysis
Value chain analysis is a tool to identify activities, within and around the firm and relating these activities to an assessment of competitive strength. Value chain can be analyzed by primary activities and supportive activities. Primary activities include: inbound logistics, operations, outbound logistics, marketing & sales, service. Support activities include: technology development, human resource management, management, finance, legal, planning.
4)SWOT Analysis
SWOT analysis is a tool used to evaluate a company's competitive position by identifying its strengths, weaknesses, opportunities and threats. The strengths and weakness is the inner factor; the opportunities and threats are the external factor. By analyzing the inner and external factors, the analysis can provide the detail information of the position of a player and the characteristics of the industry.
- Strengths describe what the player excels at and separates it from the competition
- Weaknesses stop the player from performing at its optimum level.
- Opportunities refer to favorable external factors that the player can use to give it a competitive advantage.
- Threats refer to factors that have the potential to harm the player.
- Data Sources
Primary Sources | Secondary Sources |
---|---|
Face to face/Phone Interviews with market participants, such as: Manufactures; Distributors; End-users; Experts. Online Survey |
Government/International Organization Data: Annual Report/Presentation/Fact Book Internet Source Information Industry Association Data Free/Purchased Database Market Research Report Book/Journal/News |