Company Case Study and Industry Analysis Nike Company

1398 Words Oct 3rd, 2012 6 Pages
Industry Background

Nowadays, the Footwear Industry is highly globalized and competitive. According to “Industry Profile: Global Footwear” (2012), the global footwear market produced about $243.1 billion in 2011. The U.S. market occupies the leading position by imports, and large internal manufacturers, wholesalers, and retailers who outsourcing to countries which have large amount of low-cost labors, especially in Asia, such as China, Indonesia, Thailand, India, and Vietnam. And the US footwear industry probably involves 100 manufacturers. And Nike is the bellwether of Footwear Industry today.

However, due to fashion-related and seasonal fluctuations, the demand of shoes is rapidly changing. The highly unstable demand controls the
…show more content…
In the direction of market demand, Nike takes care of each customer’s wish, needs, demands, and desires. This guarantees that the customers can get what they want and willing to buy them. After research, I found that Nike’s marketing strategy is one of the main factors of their success. The strategy is to get the best athletes in the world to support their product. For example, people all around the world want Michael Jordan’s shoes. For the supply, because Nike is in a monopolistically competitive industry, so the company has some control over the price charged for the product. And because the numbers of competitors are limited, so the company can control over the products supply.

As we know, the law of demand is that the price and quantity demand are inversely related. That is, as the price of a good rises (falls) and all other things remain constant, the quantity demanded of the good falls (rises). So, the equilibrium price and quantity is very important to Nike. And Nike did pretty well, for example, when the demanded quantity increases without a decrease in price, the company will force the price to rise.

Industry Concentration analysis
Industry concentration concerns the distribution of production within an industry. There are two commonly used methods

More about Company Case Study and Industry Analysis Nike Company

Open Document