10. Bargaining Power of Suppliers: -- Tiger shoes which used to supply for Blue Ribbon (NIKE) demanding more control over its operations in 1971 -- Lack of finance available for US openings led Nike to sell the licensing rights to local distributors in Europe. -- Each Distributor focusing on its own country and after selling a number of other athletic shoe brands. Porter’s Five Forces Model INDUSTRIAL ANALYSIS RECOMMENDATIONS
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13. Intensity of Rivalry between Firms in the Industry: -High competition in an Oligopoly (other leading firms include Adidas, Puma, Fila, New Balance) -Strong brand identity and product differentiation -Intensity of Rivalry is moderate Porter’s Five Forces Model INDUSTRIAL ANALYSIS RECOMMENDATIONS
14. Porter’s Five Forces Model INDUSTRIAL ANALYSIS RECOMMENDATIONS High Moderate Low Bargaining Power of Suppliers Bargaining Power of Buyers Threat of Substitutes Threat of New Entry Intensity of Rivalry Between Firms