ed. However, today, a combination of strong competition and changing customer tastes have forced NIKE into a situation of "forced innovation" (Porter, 1990, 112).
As a case in point, consider the fact that teenagers and young adults, once a large part of NIKE's customer base, have turned away from pricey NIKE sneakers in favor of leather boots and more rugged casual footwear. The teens also displayed displeasure with NIKE's exploitation of the labor market in Southeast Asia (Reese, 1997, 36).
The teen market is vital to a company like NIKE, since it is estimated that teens (ages 12 to 19) spent about $103 billion of their own money in 1997, and an additional $33 billion in purchases using their family's money (Reese, 1997, 36).
In addition, the 12-to-19-year-old demographic--which comprises about 11 percent of the United States is targeted to become the brand shopper of tomorrow, continuing to buy from certain companies for years to come. After a lifetime of being hustled, however, these teen shoppers are becoming quality-conscious.
"They're looking for substance, not hyperbole. Whether it comes in the form of long-lasting taste in a chewing gum or performance and durability in a sneaker, the product has to have the features teens are looking for before marketing can begin" (Reese, 1997, 37; "Telling comments . . .",1998, 38).
The Power of Substitute Products -- Very Strong
Historically, consumers have purchased their footwear at specialty and department stores. Most of these purchases were of the higher-priced designer brands. During the 1980s, consumers doubled their purchases of athletic footwear with an average annual growth rate of 7.3 percent. During the 1990s, a
recession caused many consumers to be more value conscious and sales of athletic footwear stalled.
NIKE reacted to this by reducing the price of many models and
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