Competitiveness is the struggle of two or more parties stand-in independently to confident thernbusiness of a third party by proposing the most promising terms. There are two different outlooksrnthat try to explain competitiveness. As a whole, macroeconomic perspective is famous as thernangle that categorizes what global competitiveness is in terms of price-based factors. Oppositely,rnmicroeconomic perspective tries to categorize firm level competitiveness with non-price basedrnfactors examining challenge between enterprises. The competitiveness of the footwear industryrnof Ethiopia is not matured as its age due to different competitiveness factors like technology;rnhence the enterprises are losing their markets for cheap imported shoes from foreign countries.rnThis study is done with the objective of examining the Technological factors that affectrncompetitiveness of the Ethiopian footwear industry. To meet this objective a survey of 6 shoernfactories was conducted around Addis Ababa. Out of 90 sampled respondents, 63 properlyrnanswered and returned the questionnaire to the researcher. The survey data was analyzed usingrnfactor analysis, the factor loadings and the measurement of decision rules adopted by Vichearn(2005) were used to analyze the Technological variables and their impact on the competitivenessrnof the industries. In addition, the One-Way Analysis of Variance (ANOVA) is used to examine ifrnthere is a statistical difference between the opinion of respondents regarding technologicalrnfactors. The finding indicated that significant technological factors have had different observedrnforce on the competitiveness of the companies. The result shows that all nine technologicalrnfactors were significant and supported. A competitiveness model is proposed to overcome thernhighly affecting competitiveness factors of the sector. The model developed shows therncontinuous improving of the price based and non-price based factor affecting these industriesrncompetitiveness.