Nike Porters Five Forces Analysis

By: Jonathan Kush

In 2017, Nike's market share of the sportswear market in the battleground market of America stood at 44%. Its nearest rivals Adidas market share stood at 11%, which illustrates the dominance of Nike in the industry. In any industry, this would be seen as a quasi-monopoly. But the competitive landscape has been shifting fast with rivals chipping away at this dominance. Adidas posted double digit market share growth which increased from 6% in 2016 to 11% in 2017 in the USA. Using Porters Five Forces, the report looks at the five sources of competitive pressure in the sportswear industry examining the five sources of competition for Nike which are competition from 1) new entrants, 2) competition from substitutes 3) competition from established rivals especially Adidas which is gaining market share in the USA at Nikes expense 4) bargaining power of suppliers and 5) bargaining power of buyers.

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