Nike Five Forces

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Five Forces Model
(Highly Negative. Range from 1-5)

Rivalry (3)
1. How many companies in industry?
As Nike is an international company that has their product selling worldwide, they have countless of competitors, including many domestic local firm. However, not all of these companies have the power to compete with Nike, only a few international companies are Nike¡¦s major competitors, for instance, Adidas and Reebok.

2. How do they compete each other in term of 4P marketing strategy
Product: As an athletic shoes producer, they try to provide better quality and more comfortable shoes that fit to the sport player through research and development. By claiming their shoes meet the physics need of different sports, which help the
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People still wear Nike to play basketball and do the running. At the mean time, Nike obtains the way of its aggressive advertisement and pricing strategy.

Example like this can be see in many places around the world, not only in Taiwan. For instance the unfair labor condition issues in Nike¡¦s factory at Indonesia also anger many customers; in addition, if you try to type the keyword ¡§boycott Nike¡¨ and ¡§anti-Nike¡¨ in the search engine, you will be able to come up with at least two thousand results. Yet Nike is always able to solve these kinds of problems to minimize the lost at the least cost. In the case of ¡§Jordan¡¨ at Nike Taiwan, apologize almost don¡¦t cost anything for Nike, and to take care and maintain basketball court also can encourage more sport player, which is somehow related to their sale of basketball shoes. Most importantly, they can use these for tax deduction.

Apparently, customer have the right to decide whether to buy the product or not, and this right should affect a firm¡¦s destiny. When Nike angers their customer, the customer can choose to boycott Nike and go to other brand instead of Nike for substitution. However, the unfair bargaining power between Nike and customer base upon this substitution. If we merely talk about the shoes¡¦ function, substitution sure does exist. Nike sport shoes¡¦ function can surely be replaced by similar brand like Reebok or Adidas, or
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