NEW MARKET ENTRANTS (LOW)

“Porter’s 5 Forces”  Able to control their costs

 Large marketing budgets for
running shoes
 Brand identity
 Well renowned globally
 Selling running shoes online

SUPPLIER POWER (LOW)

 Very little
differentiation among COMPETITIVE RIVALRY
the suppliers (HIGH)
 Definite advantage and  High competition
power over their  Major competitors:
suppliers Adidas, Reebok and New
BUYER POWER (HIGH)
 Suppliers become Balance
dependent on these  High growth in last two  High number of
firms as their means to decades consumers
 Increased global reach
survival  Online tools enhancing
 Firms are able to  Expansion attributed to
accessibility and
switch between the emergences of the
understanding
internet and e-commerce
suppliers quickly and
 Competition is fierce in  Strong brand identity
cheaply  Loyalty & trust
the running shoes industry
 Inputs are readily 
 Competitors adopting new Low switching costs
substituted and there techniques to introduce
are an abundant their offerings
number of suppliers o Celebrity
available. endorsement
 Low bargaining power o Sponsorship
due to Nike’s big
volume

THREAT OF SUBSTITUTE
PRODUCTS

(LOW)

 Low threat of substitutes

 Buyers' propensity to
substitute is low
 Less alternatives to switch
 Nike has copyrights