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Global Diffusion – Europe

The European market is the third market in the world, it counts revenues for 21.1 billion in the Us dollars, with a growth rate quite constant at the value of 2.2% in the period 2005-2009. The forecast about the increase of the revenues is higher than in US, around the 2.2%, following the value of the precedent years. In Europe there is a different situation compared to the American one, indeed the training sector of this revenues is the golf equipment and sportswear, that has value equal to the 18.5% of the total sector in the region.

In Europe too at the second place we have the sport adventure with revenues equal to the 16.6% of the total, and only at the third the main field in US fitness equipment and finally the ball sport stuff with a 15.5% of the total, value very similar to the American case as demonstration that the low percentage is given by the low cost of the items and not of problem in the sale of them.

In the case of Old World we have to take in consideration another difference as regards the cases of Us and China. This difference is which are the countries where we have higher returns. The first is Germany, followed by France and United Kingdom as shown in the graph below. (DataMonitor, 2010) Analyzing the 5 forces scheme we can see a situation very close to the American, also in Europe we have a very fragmented market, but with the presence of giant of the market as Nike, Adidas and Puma.

We have economies of scale given by the bulk buying and a quite big power of the buyer, just a little bit diminished by the presence of retailers, in some cases in part held by the companies, that can reduce the power of the purchaser

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