The Background of Nike, Inc.
A pair of comfy sport shoes always playing an important part for the athlete. When mentioning about sports, most of the people would directly think about the brand of shoes, such as: Nike, Adidas, or New Balance. However, Nike is always the most outstanding among so many different brands of shoes and it has a large group of customer. Thus, we would like to study whether the price of Nike is sensitive with the demand change and would the price of Nike influence the demand.
Nike is in the monopolistic competition which there are existence of many firms that operate and sell similar but not identical products. There is freedom to entry or leave the market because there are no major barriers to entry or exist. Nike offers differentiated products to the market which are different designs, quality and making materials. From this, it shows Nike is a price maker firm as they could charge a higher or lower price than its competitors. Nike can set its own prices and does not have to be a price taker from the industry. For demand elasticity, Nike could be more elastic than monopoly as there are many firms existed in the industry and having a lot of close substitutes products. Example like, Adidas, Puma, New Balance and others.
- What are the factors of people consider when buying sport shoes?
- How are consumers being affected by the changes in the price of Nike shoes, changes in the price of substitutes goods, alternative means of transport, etc.?
- Why do people choosing Nike brand when buying sport shoes?
- To understand the main demand factors of Nike among the consumers, and how it affects their choices.
- To analyse the elasticity of demand or the sensitivity towards changes in price, for Nike in the local consumer market.
The limitation in conducting survey :
- Respondent are not clearly answer the survey given question.
- Group members are lack of experience in designing survey questions.