NEW MARKET ENTRANTS (LOW)

Porters 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 the suppliers Definite advantage and power over their suppliers Suppliers become dependent on these firms as their means to survival Firms are able to switch between suppliers quickly and cheaply Inputs are readily substituted and there are an abundant number of suppliers available. Low bargaining power due to Nikes big volume

COMPETITIVE RIVALRY (HIGH) High competition Major competitors: Adidas, Reebok and New Balance High growth in last two decades Increased global reach Expansion attributed to the emergences of the internet and e-commerce Competition is fierce in the running shoes industry Competitors adopting new techniques to introduce their offerings o Celebrity endorsement o Sponsorship

BUYER POWER (HIGH)

High number of consumers Online tools enhancing accessibility and understanding Strong brand identity Loyalty & trust Low switching costs

THREAT OF SUBSTITUTE PRODUCTS (LOW)

Low threat of substitutes Buyers' propensity to substitute is low Less alternatives to switch Nike has copyrights