Nike and Adidas Non-Price Oligopoly stradigies
What is an Oligopoly?
An Oligopoly is a form of market structure where few firms dominate the industry, sharing very similar products and there is a huge amount of investment.
What is non-price competition?
Non Price competition is a marketing strategy in which a firm tries to distinguish its products from the competing products. This marketing strategy is mostly used in Oligopolies and Monopolies in order to dominate industries to avoid new firms entering the market. For example in the Adidas and Nike industry, they take different strategies in order to survive in the market. These strategies don't involve the change of price in their products, only the differentiation of product within each brand. They differentiate their products by:
Adidas and Nike dominate the sports equipment , both owning 60% of the clothing and footwear industry. Other oligopolies this industry could be Puma and Umbro, they don't dominate the market due to other small firms existing within this industry.
An Oligopoly is a form of market structure where few firms dominate the industry, sharing very similar products and there is a huge amount of investment.
What is non-price competition?
Non Price competition is a marketing strategy in which a firm tries to distinguish its products from the competing products. This marketing strategy is mostly used in Oligopolies and Monopolies in order to dominate industries to avoid new firms entering the market. For example in the Adidas and Nike industry, they take different strategies in order to survive in the market. These strategies don't involve the change of price in their products, only the differentiation of product within each brand. They differentiate their products by:
- the packaging
- sponsorships
- advertisement
- promotions
- free-service
Adidas and Nike dominate the sports equipment , both owning 60% of the clothing and footwear industry. Other oligopolies this industry could be Puma and Umbro, they don't dominate the market due to other small firms existing within this industry.
Price Rigidity
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