Sportswear Industry:
– Competitive Rivalry
4-5 companies & brands dominates the market (Nike, Adidas, Puma, Under Armor, Asics)
– Barrier to entry/ Threat of new entrants
These companies have invested millions of dollars to get Brand recognition around the world & they have benefit of economics of scale.
– Threat of substitute
We can say that sportswear have a very less chance of substitute.
– Bargaining power of supplier
It’s not high because the main material used while making sportswear is cotton and other types of fabrics and for all this there are lots of suppliers available.
– Bargaining power of buyer
Even if there are lots of buyers for sportswear but because of limited competition and high brand recognition the bargaining power is low.
By endorsing sports athletes, Nike influenced lots of customers and got their brand loyalty.