This
paper explains that, despite each company's
market penetration or strength, all of the
competitors have sought to compensate for a decrease in profit margin due to increased
competition, called hyper-competition, and decreased
demand by moving manufacturing operations abroad. The author points out the actions of the "A Brands" comprised of Nike, Reebok and Adidas as the market leaders and the "B Brands" primarily comprise of Ryka, Fila, Puma, Asics, Mizuno and New Balance, each of which holds less than a one percent market share. The paper concludes that locating or subcontracting to a country where
labor is cheap, results in fewer industry jobs for domestic workers and more imported products, creating a market cycle that will be self-perpetuate. Table. Table of Contents Global Competition A Brands B Brands Economic Factors Trade Deficit Supply and Demand Conclusion