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Established sportswear firms like Nike and Adidas offset buyer bargaining power by investing hugely in product differentiation, brand recognition, and developing strong relationships with athletes.

Established sportswear firms like Nike and Adidas offset buyer bargaining power by investing hugely in product differentiation, brand recognition, and developing strong relationships with athletes. Customers have little negotiating power despite large numbers due to leading brands increased perceived value and strong brand associations, allowing established firms to maintain pricing and market dominance.

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