Topic > Nike Five Forces - 1534

Five Forces model(Highly negative. Range 1-5)Rivalries (3)1. How many companies in the sector? Since Nike is an international company that sells its products all over the world, it has countless competitors, including many local companies. However, not all of these companies have the power to compete with Nike, only a few international companies are Nike's main competitors, for example Adidas and Reebok.2. How they compete with each other in terms of 4P marketing strategy Product: As a sneaker manufacturer, it tries to provide better quality and more comfortable shoes that fit the sports player through research and development. Claiming that their shoes meet the physical demands of different sports, helping the player maximize their abilities while protecting them and reducing sports-related injuries. Price: They have a pricing strategy for different consumer groups. The price of their shoes varies depending on the type of shoes, the features of the shoes and also the design and edition. The shoes can be sold at a standard price that is accessible to most customers. However, some shoes with special features are designed and created specifically for premium customers who can afford to pay a higher price. For this reason they can capture different groups and levels of customers. Location: Outlet outlets have opened in rural areas and retail stores in urban malls. By selling different types of products in different places help them meet different customer needs. On the other hand, they also sell their products online, where customers can purchase them anywhere, anytime. All this makes them able to maximize their earnings. Promotion: Promotion does not just mean price discounts, as they collaborate with Super Sport Star to allow these famous players to introduce their products to them, sometimes they organize events to give customers have a chance to meet these super sports players by offering the ability to raffle the ticket after the customer's purchase amount has met the requirements. This will help the company increase sales, which at the same time can further promote its brand as advertising. Customer (2) Although many believe that the customer is the biggest and should have absolute power, in this case Nike has absolute power over the customer, whereas the customer has low bargaining power. This can be proven by studying many cases where Nike makes their customers angry and says that they will refuse to buy Nike product.