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Nike's Five Forces Analysis

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Nike is a sports brand providing niche products such as sportswear and apparels to consumers. It ranges to different types of sports from football to basketball. Nike is one of the leading firms, which is worth $15,000,000. Recently, Nike has provided a new design to the consumers. It consolidated modern technology with shoes, which is more appealing to the consumers. Adding on, Nike has been supplying the best products to every athlete around the globe. The company has utmost dedication to create every chance to show themselves after three years. Nike realizes that the use of advance technology produced the best products and hence, Nike decided to invest on manpower and material resources for the research and development of new products …show more content…

Most changes only affect how a company can produce their goods and how much profit they would make. Although these factors seem insignificant to us, these factors contribute the probability of a company surviving. One of the reasons why Nike is so successful is due to the policy it has. Nike embraces low-interest rates and well regulated international tax agreements. As a company that manufacture and sells physical goods, the tax and manufacturing laws are subject to change. Political conflicts can always make customs related processes …show more content…

The model is usually used, worldwide, to analyze the industry structure of a company as well as its corporate strategy. The forces are frequently used to measure competition intensity, attractiveness and profitability of an industry or market. One of the main intensity between the competitors is the rise of the number of competitors. Competition regulates how Nike maintains its share of the sports footwear in the market. Linking back to the porter five forces, it displays how competition impacts the environment of the industry and the performance of individual firms. Low market growth rate and high aggressiveness of firms also affects the industry. Based on the porter five forces, the strong competition in the industry requires Nike to pay attention on market development and product to ensure advantage and also to grow the share in the global

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