Industry Analysis Of Star Pak Sialkot

Assignment # 2

Star Pak
Industry Analysis
An industry is a group of manufacturers or businesses that produce a particular kind of goods or
services. Star pak is a big company with the widest range of products. Star Pak is multinational
company which deals with Martial Arts and Field sports products. In Martial Arts unit Star Pak
manufacture Martial arts and Boxing protection goods. Star Pak Martial Arts exporting their
products in all over the world. Customers from Europe, UK, Spain, Canada, Italy, USA,
Dubai etc, have strong demanded SMA Products. SMAs the main target markets are

Europe and USA. In Europe its seems as a quality brand. Star Pak manufacture and exports
boxing as well as Martial Arts related products. Star Pak martial arts has also joint venture with
Adidas since 1989, Adidas is a leading producer in all over the world.
Product Line
Field Sports
Tournament/Match balls
Training Balls
Promotional/ Junior training Balls
Indoor Balls
Light Balls
Futsal Balls
Volley Balls
Goalie Balls
Shin Guards
Football Uniforms
Martial Arts
Amateur/ Professional Boxing Equipment
Carbonium & air Maxx Line
Boxing Gloves, Head Guards
Pinching Gloves, bags, Balls
Kick Boxing Protection & Textile range
Fitness Training Gloves, Weight Training Balls
Porter five forces

Industry Analysis Of Star Pak Sialkot

Assignment # 2
Porters five forces model helps in accessing where the power lies in a business situation.
Porters Model is actually a business strategy tool that helps in analyzing the attractiveness in an
industry structure. It let you know about the current strength of your competitive position and the
strength of the position that you are planning to attain. Porters model of competitive forces
assumes that there are five competitive forces that identify the competitive power in a business
situation. i.e.
Threat of substitute products
Threat of new entrants
Intense rivalry among existing players
Bargaining power of suppliers
Bargaining power of Buyers
City of sports goods manufacture, Sialkot whenever we talk about sports goods only one city
name come in our mind thats not other than Sialkot, Pakistan. Regarding industry structure,
Porters five forces analysis (Exhibit 2) reflects the high level of competition in the Sports
industry.
Rivalry among existing competitors:
The rivalry is high, but the market demand is also increasing at a high growth rate. The rivalry
among the existing competitors is very high in this industry. Because there is strong competition
in the industry between Penna and World of Martial Arts. Each of them has been offering by top
sports personalities. Stat pak has adopted several strategic measures for their market growth such
as joint venture with the adidas. The diversity of rivals, that is; the rival firms like Penna and
World of Martial Arts are of different cultural, historical and philosophical backgrounds and so
the rival moves are very difficult to predict.
Threat of Substitutes:
The threat of substitutes is low. The large companies like Star Pak face tough competition in the
market. Threat of substitute products means how easily your customers can switch to your
competitors product. There are no such substitutes of martial arts and boxing protection goods. Penna
and World of Martial Arts are the major competitors of the Star pak so it also affects its market
growth. So the threat of substitutes is low.

Industry Analysis Of Star Pak Sialkot

Assignment # 2
Bargaining power of buyer:
The bargaining power of buyer is low because Star pak register their Products in USA market. As
Star pak provided high quality and the low cost products so the bargaining power of buyer is low.
Star Pak gain the competitive Advantage through Low cost.
Bargaining power of suppliers:
The bargaining power of suppliers is low to medium as there is enough supply of raw materials
like cotton (Textiles) used for preparing the Martial Arts and Boxing products. The barriers to
entry are high. The sports industry needs large volume of startup capital. The cost of setting up of
offices, hiring staff, technology etc.
Threat of new entry:
A new entry of a competitor into your market also weakens your power. Threat of new entry
depends upon entry and exit barriers.

The entry barriers to the sportswear market are

comparatively high. Any firm can freely enter into the market but survival in the market and to
gain market leadership is quite difficult. There are some barriers like High initial investments and
fixed costs, Controlled access to the raw materials by star pak because they are the establish
players in the market. Star Pak now literally acts as an institution for this industry. AMATEUR
INTERNATIONAL BOXING ASSOCITION (AIBA) has approved 24 brands for Boxing gloves
and head Guards and 60 percent are star Pak products as well as SPs products also approved by
USA Boxing Association.
StarPak Martial Arts Pvt. Ltd is producer of martial arts and boxing products. In Boxing and
Martial Arts market, they are winner because they have many international customer and many
customers who are loyal to them. SMA marketing strategies differ depending on the unique
situation of their business. SMA has strong relation with international customers and tries to
fulfill their international demand. Maximum emphasis is placed on quality control and timely
deliveries. According to the Audit Report of June 30, 2012 the Authorized share capital of SMA
is more than PKR. 25,000,000/-, Issued, subscribed and paid up capital is 13,600,000. SMA has
bright future because of their stability in their production and working manner. But
still they have many future prospects for which they work hard and day and night.
SMA Establishing new production unit in near future. SMA is produced quality
products for their customers to achieve the high level of satisfaction. SMA Maintain
and make strong relation with their customers because many customers are
international SMA fulfill their demands. SMA provides new design and innovative

Industry Analysis Of Star Pak Sialkot

Assignment # 2
products for their customers. They make products according to customer demand
and requirements.

Yes SMA earns more return in future because they establish a new production unit in Sialkot to
fulfill the demands of the customers.

http://www.smartinsights.com/marketing-planning/marketing-models/use-porters-5-forces/

Exhibit 1

Industry Analysis Of Star Pak Sialkot

Assignment # 2
Sports Industry (Star Pak): Porter Five Forces Analysis

Barriers to Entry

Threat of Substitute

High

Low

High Capital requirements

Product Differentiation
Brand Loyalty
Strong Brand Names

No Substitute of martial Arts

Rivalry
High

Bargaining Power of
Customer
Low
Brand Loyalty
Product differentiation
Quality conscious

Huge Demand
High Growth
Price Sensitive Customer

Bargaining power of
supplier
Low
Large number of Suppliers
Material Available in the open
market
Easily Switch