Despite different times and context, Nike and Li Ning entered the newcomer stage with
similar competitive patterns. At this juncture, we refer to the density of equally strong
competitors in the industry or, as explained by Porter (1998), to the state of the “Intensity of
rivalry” among existing firms. In 1971, the competitive situation can be described as being
dominated by adidas and Puma. When Li Ning started its business in 1990, the industry was