Nike: A Monopolistic Market

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The type of market my paper is concentrating on is known as a monopolistic competition market. The first characteristic that differentiate a monopolistic competition market from the other 3 markets is that in a monopolistic competition, there are many sellers which would lead to competition between the firms to sell their products. The second characteristic is that monopolistic firms are relatively small, which can result in either new firms to enter the industry or firms that are existing to exit the market. The third characteristic is that the firms in the monopolistic market sell products that are similar but are slightly different compared to other firms in the same market. The last characteristic is that the firms in a monopolistic market…show more content…
An advantage of how Nike uses this strategy is that it allows them to boost their profit by selling differentiated products and Nike have other products that will compensate for products that fails in the market. The difference between Nike and its competitors is that Nike produces their products for men, women, and children in different ways based on the basis needs, physiology, preference of design, and the trends in the market. However, the biggest threats to Nike’s market is the stiff competition with the other sports brands that sell similar products, which causes Nike to continuously come out with new products with new technologies and better…show more content…
The first method that they utilized was that they switched from a vertically integrated brand structure to a functional multi-rand structure. The functional multi-rand structure helped Adidas by creating a global sales function that is responsible for commercial activities and marketing for both brands. With a global sales function, it allows Adidas to split Reebok and Adidas into wholesome and retail department, which allows them to cater to the various necessities of both brands. The second method that they utilized was by focusing their investments in the best possible markets and channels in foreign countries by critically evaluating buying behaviors of their consumers in order to secure shelf space for their goods. The third method that they used is that they embraced e-commerce, which allows them to appeal to their customers more efficiently and make purchasing products for consumers more

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