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Yet, this industry is very concentrated and keeps consolidating: Nike bought Converse in 2003; Adidas bought Reebok in August 2005. Nike owns 36% of the US market while the new Adidas-Reebok owns 22%, which equates to a combination of 60% for the two top players. The US Market, with $14.75 billion last year, accounts for half the sales of athletic footwear in the world and drives most of the product trends. Other notable companies are New Balance, Puma, and K-Swiss. Japanese Mizuno and Asics have never really succeeded entering the US market.
Entry: Moderate Threat
Market leaders Nike and Adidas established a series of barriers to prevent new entrants from threatening them...
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