Nike Case Study

While members of this industry sell mostly athletic footwear, many in the industry have recently entered the sports apparel and accessories industries as well. NIKE, Reebok, Converse and Adidas can be seen splashed all across the front of athletic clothing. This represents a double benefit for the industry because people pay to be seen in the company's apparel, and the industry gains free advertising.
Historically, consumers have purchased their footwear at specialty and department stores. Most of these purchases were of the higher-priced designer brands. During the 1980s, consumers doubled their purchases of athletic footwear with an average annual growth rate of 7.3 percent. As the 1990s opened, a recession caused many consumers to be more value conscious and sales of athletic footwear stalled. This also caused several consolidations and mergers in the industry.
The mass merchandisers also contributed to the consolidations in the industry. Mass retailers such as Sears, K-Mart, an...