Using Porter's Five Forces analysis, it would need to be asserted that the Power of Suppliers is weak, due to the fact the shoes are similar in model and structure, as well as the materials for them are very easily out there from a wide quantity of sources within the world.
When NIKE started, there was a rather vague and uncertain category of shoe called a "sneaker" and NIKE took that concept and turned it into "athletic shoe." There was basically no competition for what NIKE was offering, and individuals accepted the fact that NIKE's higher price was needed for ones quality offered. However, today, a combination of powerful competition and changing consumer tastes have forced NIKE into a case of "forced innovation" (Porter, 1990, 112).
As a case in point, take into account the simple fact that teenagers and young adults, as soon as a large component of NIKE's buyer base, have turned away from high-priced NIKE sneakers in favor of leather boots and more rugged casual footwear. The teens also displayed displeasure with NIKE's exploitation with the labor market in Southeast Asia (Reese, 1997, 36).
The teen marketplace is vital to a company like NIKE, because it is estimated that teens (ages 12 to 19) spent about $103 billion of their very own funds in 1997, and an additional $33 billion in purchases utilizing their family's money (Reese, 1997, 36).
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