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Essay / Research Paper Abstract
This 3-page paper analyzes the competitive and environmental forces facing Nike. Bibliography lists 3 sources.
Page Count:
3 pages (~225 words per page)
File: AS43_MTnikeenvi.rtf
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Unformatted sample text from the term paper:
which Nike operates? According to the National Sporting Goods Association (NSGA), retail sales of athletic footwear surpassed $17.4 billion in 2007, with walking
shoes the most dominant type in the market (Athletic Footwear 52). In terms of competitive forces, entry is fairly easy, as fixed costs for retail operations are low (Footwear Industry
Profile 11). However, because there are already established groups that have significant economies of scale, its difficult for new entrants to really gain a foothold in the market (Footwear Industry
Profile 11). Furthermore, when it comes to degree of substitution within the athletic footwear market (the one in which Nike operates), there is a significant degree (Footwear Industry Profile 12).
Because the market is dominated by large retail groups, there is a high degree of rivalry, though fixed costs for retail operations arent high, meaning smaller companies can co-exist in
the market as well. (Footwear Industry Profile 12). Its also easy for new players to establish a required supply chain to be successful in this market (Footwear Industry Profile 12).
In short, this market is highly fragmented, highly competitive, with a high degree of rivalry and substitution. Threat of new entrants is
constant and strong. What factors are the most critical to compete successfully in this industry? The interesting aspect about this particular market is
that a shoe, is a shoe, is a shoe. They are constructed the same and, in most cases, are made from the same materials (in fact, many of the suppliers
provide goods and services for a lot of the retail rivals in the marketplace). What, then, is the differentiation between these companies? Two things: Branding and promotion. This is why
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