Substitute is lower quality (Nike)

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A lower quality product means a customer is less likely to switch from Nike to another product or service. … "Substitute is lower quality (Nike)" has a significant impact, so an analyst should put more weight into it. "Substitute is lower quality (Nike)" will have a long-term positive impact on the this entity, which adds to its value. This statements will have a short-term negative impact on this entity, which subtracts from its value. This qualitative factor will lead to an increase in costs. "Substitute is lower quality (Nike)" is a difficult qualitative factor to overcome, so the investment will have to spend a lot of time trying to overcome this issue.

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 Substitutes: Substitute is lower quality (Nike)
A lower quality product means a customer is less likely to switch from Nike to another product or service.

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