The threat of new entrants into the athletic sportswear industry is ranked low, as there are steep financial challenges that face any company trying to join such a competitive industry. Under Armour has managed to break in over the last twenty years, but this is a rare occurrence. The industry is dominated by the major players and cannot support too many further entrants. Nike should not worry too much about any smaller players in the industry as they do not have the ability to keep up with Nike’s marketing, design, and endorsements.
The bargaining power of buyers is ranked moderate to high as the products that Nike produces can largely be considered as luxury goods. Nike does not have a monopoly on the market and their competitors have consistently
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Though Nike has promised that they do not condone any form of human rights violations and work to ensure that children do not make their products, stories still persist involving their failures on these issues. While many other brands use similar labor tactics to produce their products, there are few who receive as much pressure on the issue as Nike. If they continue to use these practices they may find themselves alienating consumers across the world. …show more content…
While it would be ideal to bring their labor force into the twenty first century, that is going to eat into their revenues. Instead, focusing on increasing factory working conditions, safety, and wages in the countries in which they already operate will be cheaper and more positively received. Detractors of their current practices will applaud Nike’s work in third world countries if they follow this method, and Nike will be at the forefront of the industry in terms of factory