Product innovation is key in the running shoe industry. The major players all try and position
themselves as technology and performance leaders, and advertise this aspect of their
products heavily. There is therefore a risk that Eagle could lose market share rapidly if a
major innovation were to be developed by a competitor.
The risk is mitigated by the fact that there are so many different product innovations on the
market at any one time; it is unlikely that one system will become predominant over all the
others. Differences in feel and performance are likely to come down to an athlete's personal
preference at the top end of the market. In addition, Eagle has invested heavily in its own
research and development, and is recognized in the industry as being strong on innovation
and performance.