Threat Of Substitute Products - Counterfeit products represents the biggest threat in this area
The worldwide demand for athletic footwear, apparel and equipment is expected to grow in the future as customers cannot substitute these products.
However, the problem of counterfeit products is an area to watch. As the quality of counterfeit products has been improving over the recent past, we believe this could threaten the company’s sales in emerging markets and could also potentially dilute Nike’s brand value