Supplier (1)
There are many suppliers in this industry.
Meaning, there is very little differentiation among the suppliers which makes suppliers¡¦ bargaining power non-existent. Leather, rubber, and cotton are commodity items and are widely available in the market place. Therefore firm like Nike and Adidas have a absolute advantage and power over their suppliers. Most importantly, firms are able to switch between suppliers quickly and cheaply, there for these suppliers become dependent on these firms for survival.