I need approximately 400 words total to describe the market trends that Nike will face and address how each of the following will change or will not change, and why:
a. market structure
b. Impact of new companies entering the market
What is Nike's market structure?
Nike's products can be broadly classified into three categories
? Athletic Footwear
? Athletic Apparel
The revenue by different categories of products sold by Nike reveals that footwear account for 54% of Nike's revenues, Apparel account for 27% of Nike's revenues and Equipments account for 6%. Rest 13% revenue comes from other brands (Source: Financial Reports of Nike).
Athletic footwear is a monopolistic industry where major players in the market compete on the basis of product differentiation mainly represented by their brand images. In the athletic footwear market, Nike is an established brand name and has ...