Nike Market Analysis: Competitive Landscape and Strategic Insights

This report provides a market analysis of Nike, focusing on key factors such as the power of buyers, the threat of substitute products, and the competitive rivalry within the athletic apparel industry. It analyzes Nike's position relative to competitors like Adidas and Puma, highlighting the importance of product differentiation and brand development. The report also discusses the impact of suppliers and new entrants on Nike's market position and suggests strategic modifications to respond to market forces. The analysis incorporates a visual representation of industry rivals and references relevant academic sources to support its findings. The report suggests strategic modifications to maintain its competitive edge.

Running head: MARKET ANALYSIS OF NIKE
Market Analysis of Nike
Name of the Student:
Name of the University:
Author Note:

1
MARKET ANALYSIS OF NIKE
Description of the
force that has some
form of impact on the
organization
Strength of the
Force
Do you Need to
Modify your
Strategy to
respond to this
Force of
Change?
If you need to
modify your
strategy what
actions do you
recommend?
Describe
Power of buyers The fair distribution of
rival companies
provides the customers
with buying choices
especially with the
availability of the low
switching cost (Hoberg
& Phillips, 2016).
Moderate Yes Product
Differentiation
Threat of
Substitute
product or
services
The easy availability of
rival competitors
selling athletic products
are in abundance like
Reebok and Adidas
accentuated further by
low switching cost and
product
customization(Madison,
2017).
Moderate Yes Creating a
platform for free
conversation
amongst the
customers and as
well with the
company
increases
customer loyalty
(Adams et al.,
2016).
Power of
Suppliers
Nike can choose from a
number of suppliers for
its raw materials. Nike
is therefore at an
advantageous point in
this regard since the
suppliers cannot
bargain or negotiate the
price of the raw
materials.
Weak No _
Threat of New
Entrant
New entrants has a lot
of power to weaken
Nike’s desirability
amongst the customers.
However Nike has
created a strong niche
with systematic brand
development policies
hinder the easy
admission of new
entrants. The high
Weak No _

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MARKET ANALYSIS OF NIKE
brand development
expenses is another
obstructive facto.
Rivalry among
Competing
Sellers
Adidas is a
strong competitor
which has been giving a
stiff competition to
Nike since 1998 with
acquisition of a strong
customer support
globally (Hoberg &
Phillips, 2016). Puma is
a huge craze among the
youngsters generating
huge quantity of sales
in Europe and creating
1.6 billion sales
revenue in U.S.A.
High. Yes. Product
customization
can be effective
since demand for
customized
footwear is a
trend.

3
MARKET ANALYSIS OF NIKE
HHigh
Price
LLow
Price
Niche marketing Broad Marketing
Puma
UUnder amour
Reebok
7Fila
AdidasNNike
Figure: Positioning of Industry rivals
Source: Author

4
MARKET ANALYSIS OF NIKE
Reference List:
Adams, R., Jeanrenaud, S., Bessant, J., Denyer, D., & Overy, P. (2016). Sustainability‐oriented
innovation: a systematic review. International Journal of Management Reviews, 18(2),
180-205.
Baumann-Pauly, D., Scherer, A. G., & Palazzo, G. (2016). Managing institutional complexity: A
longitudinal study of legitimacy strategies at a sportswear brand company. Journal of
Business Ethics, 137(1), 31-51.
Hoberg, G., & Phillips, G. (2016). Text-based network industries and endogenous product
differentiation. Journal of Political Economy, 124(5), 1423-1465.
Madison, D. (2017). A framework for evaluating user acceptance of individual system
functionalities: a case study on the editor role for the PUMA glossary (Master's thesis).