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Title: Nike Footwear 5 Forces Analysis

Essay Details

Subject: Business
Author: Hope H
Date: September 6, 2015
Level: University
Grade: A
Length: 3 / 813
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

Yet, this industry is very concentrated and keeps consolidating: Nike bought Converse in 2003; Adidas bought Reebok in August 2005. Nike owns 36% of the US market while the new Adidas-Reebok owns 22%, which equates to a combination of 60% for the two top players. The US Market, with $14.75 billion last year, accounts for half the sales of athletic footwear in the world and drives most of the product trends...

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Other notable companies are New Balance, Puma, and K-Swiss. Japanese Mizuno and Asics have never really succeeded entering the US market. Entry: Moderate Threat Market leaders Nike and Adidas established a series of barriers to prevent new entrants from threatening them. First barrier would be the outsize marketing budgets spent in advertising and the endorsements of athletes: Nike spent $90 million on a contract for LeBron James alone in 2003, and they paid the prestigious Manchester United club an unprecedented $450 million over 14 years to run its merchandising and uniform operation...

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