Customers are loyal to existing brands (Nike)

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It takes time and money to build a brand. When companies need to spend resources building a brand, they have fewer resources to compete in the marketplace. These costs positively affect Nike. … "Customers are loyal to existing brands (Nike)" has a significant impact, so an analyst should put more weight into it. "Customers are loyal to existing brands (Nike)" will have a long-term positive impact on the this entity, which adds to its value.

Five Forces Analysis Survey This statement has a significant impact? Has a positive impact over the long term? Has a negative impact over the long term? Has a positive impact over the short term? Has a negative impact over the short term? This statement leads to reduced costs? This statement leads to increased costs? This statement leads to increased profits? This statement leads to decreased profits? Easy to defend this advantage? Easy to overcome this disadvantage? Difficult to defend advantage? Difficult to overcome this disadvantage? Affected Investments

Threat of New Competitors: Customers are loyal to existing brands (Nike)
It takes time and money to build a brand. When companies need to spend resources building a brand, they have fewer resources to compete in the marketplace. These costs positively affect Nike.

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