Bargaining Power of Buyers
The power of buyers in the footwear industry is distributed among several companies. There are a large number of buyers relative to the number of firms in this industry. For a company to succeed in competition there is a continuous need to develop new products with higher quality than its competitors. The price of NIKE products is comparatively high as compared to the other brands. Customers are price sensitive. There are other options in sports footwear available in the industry at a lower price. Thus the bargaining power of buyers is high.