In summary, threats of substitutes arise from the availability of alternative

products or services, while competitive rivals are other companies in the same
industry that directly compete for customers. Both forces can impact a
company's profitability and market position.

Nike, as a global leader in the athletic footwear and apparel industry,

possesses several competitive advantages when it comes to strategic
management. Here are some key factors contributing to Nike's competitive
advantage:
1. Strong brand image: Nike has built a powerful and recognizable brand
that is synonymous with performance, innovation, and inspiration. Its
"Just Do It" slogan and iconic swoosh logo have become globally
recognized symbols. This strong brand image gives Nike a competitive
edge, as it attracts customers and fosters brand loyalty.
2. Extensive product innovation: Nike invests heavily in research and
development to continuously innovate and create technologically
advanced products. By introducing new materials, design features, and
performance-enhancing technologies, Nike maintains a competitive
advantage over its rivals. Examples include Flyknit technology for
lightweight and flexible footwear and Dri-FIT fabric for moisture
management in apparel.