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It is however a very difficult task to please the consumer with low prices and at the same time to keep the costs of production at a low level without exploiting the workers. In my opinion the prices won’t affect Reebok significantly because they are in an ologopolistic market. Firms like Nike are in the same situation and therefore will have higher costs of production as well...
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Firms like Nike are in the same situation and therefore will have higher costs of production as well. They will have to use non pricing strategies to compete with each other. Through advertising they can try to differentiate their product, making it seem more favourable to the customer. The Firms could stay at the same price and lose profits or they could charge the customer more...
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