Some economists argue the reason Nike has such a high market share in the athletic shoe industry is because the company spends much more on media advertising and for endorsement contracts than other shoe manufacturers.This makes it difficult for new companies to enter the industry and compete against Nike because it has created:

Question

Quizplus · Accepted Answer

Nike's high spending on media advertising and endorsement contracts creates barriers to entry for new companies to enter the industry and compete against the established brand. This is known as a barrier to entry, which gives established companies a competitive advantage and makes it difficult for new entrants to gain market share.

Some Economists Argue the Reason Nike Has Such a High