Suppliers offer two basic grades of materials: standard and superior. The qualities of superior and
standard materials are the same from supplier to supplier. All suppliers charge the going market price
because of the commodity nature of both standard and superior materials. The use of superior fabrics and
shoe sole materials improves shoe quality and performance, but shoes can be manufactured with any
percentage combination of standard and superior materials. All footwear-making equipment in
present and future plants accommodates whatever percentage mix of standard and superior components
that management opts to use.