Strategic Management-Case study Nike Research Paper

Strategic Management-Case study Nike - Research Paper Example The other factors entail the customers who are capable enough to compel firms to bring down its prices by triggering competition between the particular firm and its respective competitor. Suppliers can also restrict the profits of the firms by way of demanding higher prices. Fresh participants or competitors with new facilities and zeal to capture the market can escalate the investments for a firm in order to stay in the competition and compete with the fresh force. Lastly, alternate choices also negatively manipulate the profit of the firms as it can facilitate in taking away the customers of a particular firm by luring them with the alternate choices. Therefore, all these factors need to be evaluated while designing an effectual strategy of a firm. The evaluation would provide a complete understanding of the ways by which the profit can get affected in an industry (Porter, 2011). Firms should get a complete understanding of the mentioned forces and structure plans particularly to cut down on the profits that are being taken away by the other market contestants or competitors. Firms require taking heed of those forces and planning accordingly so as to continue its sustained existence. Firms should take steps to counterbalance the power of the suppliers by setting specifications for the procured materials so that it becomes easy for the firm to change vendors without affecting the operations as well as increasing the related costs. In order to reduce the effect of the powers of the customers, firms need to develop and spread out their services as well as products so that it can hold on to the customers from losing to its opponents. It is a common phenomenon for the opponents to alter its prices in order to capture the market. Owing to this reason firms need to manufacture products which should vary notably from the products of its competitors. Therefore, firms need to design strong