In Its Discussion of Nike and Adidas, Two Major Athletic

question 43

Multiple Choice

In its discussion of Nike and adidas, two major athletic shoe manufacturers, the text mentions that Nike has purchased Umbro, a sports brand that has appealed mainly to soccer (European football) enthusiasts in the past. This action suggests that Nike intends to compete head to head with adidas, which got its start designing soccer shoes. On a SWOT analysis for adidas, how should Nike's acquisition of Umbro be categorized?

• A) Strength
• B) Opportunity
• C) Weakness
• D) Segment
• E) Threat

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Definitions:

MR = MC

An economic principle where the marginal revenue (MR) equals the marginal cost (MC), often used as a condition for profit maximization.

ATC = AVC

Indicates that the Average Total Cost equals the Average Variable Cost, a condition found at the minimum point of the Average Total Cost curve in economic analysis.

Bottled Water

Packaged drinking water sold in plastic or glass bottles, often purified or spring water, catering to consumer demand for convenient and perceived safe drinking water.

Marginal Cost

The variation in the overall expense that occurs when one more unit is produced, fundamentally representing the expense of manufacturing an extra unit of a product.