Nike and Adidas in Global Shoe Market

Today, the shoe market has increased competition in terms of sales because there are many things that have been preserved. Consumer expectations also supplies and people now have another taste and aspect when it comes to design and are actual. Therefore, companies have increased competitive competitive competition according to the company that is properly imposed. There are several types of marks in Global market shoes such as Nike and Adidas. 

Nike and Adidas are a sports entity that served worldwide. So which brand do you think matches your tastes and preferences? What shoes would you like? I believe that everyone has their own special feeling and choice of what brand and type. For me, I prefer Nike because the design of the shoes is pleasant and comfortable to wear. From an economic point of view, there are several determinants that reflect this. 

Customer taste has a demand effect, in which an increase in customer taste increases its demand curve. Different companies use different brands because of these differences in taste and preferences. For example, Nike brands in the United States and Europe are generally recognized as clear leaders, while other preferences are not always found in many other brands -Fanar off, 2013. Furthermore, the number of buyers is also one of the factors influencing demand. More and more buyers are thanking celebrities like Tiger Woods, who also wear Nike shoes, and consumer demand is increasing because they also want to get what these celebrities wear :Kay, 2013. As the number of buyers of Nike products grows, demand will automatically increase. 

Consumer appetite can cause a change in demand. However, the number of buyers has decreased as many other spare parts start to compete with Nike shoes, and this is when the demand down and the number of Nike shoes decreases . 

As I said before, Nike is a good replacement because it can be replaced by Puma and Adidas. Thus, the quantity of demand will decrease as the price increases and the consumer can easily choose all the replacement goods.

Thus, there is a reciprocal effect because it is caused by a price increase that will cause the consumer to buy even cheaper items, because the consumer always has the right to choose what to buy. In addition, the substitution effect is always negative for retailers, as consumers often switch from buying a higher priced product at a lower price. This is also because they are trying to keep a living despite rising prices. Moreover, the effect of substitution is not only suppressed by consumer products, but is also reflected in many different areas, such as supply and taste. So even though there is no Nike shoe store in the area where they live, they can choose Adidas, so the above factors are used to explain the nature of monopolistic competition. In addition, monopolistic competition is also defined as a form of competition within an industry where all companies produce attractive profit maximizers and have some market power, which means that there is no single price recipient. 

Monopoly competition is defined as a large number of companies selling a product that is something else. Companies compete with each other on issues such as price and quality. It can also be explained that it is easy to start a monopoly business because the costs of setting up a business are small and other companies in the same sector cannot prevent people from entering. In addition, Nike did not set the price by the government because it has the right to set the price themselves, which will lead companies to obtain a declining demand curve. In addition, due to low penetration barriers, economic income cannot be maintained in the long run. Economic income has been unavailable for a long time due to low entry barriers and entry eliminates profits. Furthermore, due to the strength of pricing, allocation as a productivity efficiency will not be achieved in the long run. As in economic terms, it is one of the determinants of monopolistic competition.