Equally, the power of suppliers is largely non-existent while the threat of entry remains impossibly high (although Kevin Plank begs to differ). Among athletic apparel and shoe manufactures, there is an incredibly fierce rivalry among incumbents Nike, Adidas and Under Armour, while the bargaining power of consumers and the threat of substitutes remains high with a strong opportunity to seek alternatives among the competing firms and other manufacturers. Of course, how the forces are configured and their effects on profitability depends on the type of industry. Moreover, recent strategic theory has added a sixth force – the influence of complements – whom in college athletics can have major effects on not only the success of individual sports programs, but the future sustainability of our industry as a whole.
Not only does the athletics rivalry which your university has with other institutions have an intense effect on the outcome of department’s labor, but you must also carefully analyze the other competitive forces that include: customers, suppliers, potential entrants and substitute products. Porter identified the Five Competitive Forces That Shape Strategy and in doing so created a universal tool for professionals in any industry to understand the dynamic and varied degree to which the competition shapes our day-to-day businesses. In 1979, a young Harvard professor by the name of Michael E. Yet while it is easy to say that in college athletics the universities and sports programs that we play against on the field and court each day are our competition, such an observation is far too simplistic if we strive to build a sustainable and successful athletics program. The essence of success in any business venture is the necessity of understanding and learning to deal with the competition.
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