Threat Of New Entrants – Requirement for high capital and research investments could limit the entry of new players; however, there is a threat from new e-commerce players
Significant capital resources are required for creating a new brand as large investments are needed for marketing and procuring floor space; hence, this restricts the entry of newer players.
Nike enjoys a great degree of brand recognition and loyalty, and it will be a difficult for a new player to match its level.
Having said that, we believe more Internet companies could start selling competitors’ footwear, apparel and equipment online as the barriers to entry are low in this business