Competitive Rivalry Within The Industry – Intense competition from established and upcoming rivals could threaten Nike’s market share growth
The global market for athletic footwear, apparel and equipment is characterized by intense competition, with presence of a large number of players such as Puma, Adidas, V.F Corporation, Asics, etc.
The global athletic products industry is exposed to continuous changes in consumer preferences and technology; if Nike is unable to adapt to these changes quickly, it could suffer losses in its market share.
Rising competition from emerging players such as Under Armour and Lululemon Athletica, which focus on niche market segments such as performance apparel and yoga-focused apparel, also pose a threat to Nike’s share of selected markets.
Nike also faces rising competition from local players in emerging markets, who are increasingly improving their product quality.
Having said that, Nike has a strong brand reputation which likely will continue to propel strong demand for its products. Further, Nike continues to differentiate its products within an innovative product portfolio, leveraging a particularly strong brand with enhanced marketing activities.