Kinds of market structure

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Reference no: EM132184020

kinds of market structure


You are a consulting group with Adidas Corporation. Nike, Reebok, Under Armour, Converse, Fila and many others compete with you in the athletic apparel industry. Nike began a campaign last quarter using Steph Curry as their spokesperson. His ads have been plastered on everything from billboards, to buses, to the backs of boxers! The ads imply that if Nike helped LeBron become a great athlete they can help you too. Since the inception of the program Adidas sales have dropped. What kind of market structure is in place


Good news. A few of your competitors have been forced out of the industry because of the great work you did last quarter. Unfortunately, there are still tons of firms competing in this industry and none of them have a lot of the market. Nike has begun opening more stores in malls across the country over the past three months. The stores are located in big regional shopping centers. The ads featuring Steph continue to run all of the time. Nike has reported that their income was up last quarter. The board wants to know if you would suggest opening Adidas stores in the same malls and shopping centers. What kind of market is in place

scenario 3

The first half of the year is over. Here’s what is happening now. Even more of your competition has left the industry. You and a handful of others really determine what happens in the market. Nike has just signed Dwayne Johnson (wasn’t he called “The Rock” when he wrestled professionally?) to a three year contract and is paying him like a Bizzilion dollars to endorse their products. You, Nike and Converse now have a huge impact on the market. Converse has just announced that they have lowered their prices by 5% and they are giving a 100% guarantee on all of their products. If the customer is not completely satisfied they will get a refund and an additional $20 to pay for gas to get you to the store. What are the strengths and weaknesses of this strategy? What kind of market is in place?  

scenario 4

Well this is it. You are in the fourth quarter of the year and this is where you make or break it. Tons of new companies have entered the industry and none of them have very much influence in the market. Converse left the industry because they went broke trying to pay for all of the returns of their products. Nike is ticked off at the Rock because he body slammed a fan at a book signing event. The board now wants to lower all of their prices by 10% to attract customers during the Christmas season. Would you support their decision? What kind of market structure is in place?

Reference no: EM132184020

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