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Since its beginnings in 1938, the Columbia Sportswear Company has produced outdoor-oriented activewear, including parkas, hiking boots and accessories. Nike use vertical integration price strategy in which they take ownership of the participants at channel level that differ and they also engage in various channel level operations both to control costs and thus influence the pricing function (Goldman S, 2000, pp154).
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For one this type of shoe had never been released in anything but white whereas the Air Jordans were black with bold red detail, causing them to soon be banned from the basketball league, a ban that Jordan himself broke time and time again, resulting in Nike getting fined but to Nike this was OK as people were starting to pay attention to the shoe.
A Cowen survey of 2,500 U.S. consumers published last month showed 43 percent named Nike as their first choice of athletic apparel, compared with just 13 percent for Adidas, 6 percent for its Reebok brand, and 14 percent for Under Armour.