Nike,Inc. is an American multinational company that engages in theproduction and marketing of sporting footwear, accessories, equipmentand clothing. Its headquarters are in Beaverton, Oregon. The companywas established in 1964 as a partnership between Bill Bowerman andPhil Knight. During its formation, the company was known as BlueRibbon Sports. The name Nike was borrowed from the Greek culturewhere, Nike was the goddess of victory. This paper is a review ofNike’s business strategies.
NikeInc.’s Business Strategies
Thecompany’s business strategy model is a generic one which involvesacquiring competitive advantage while emphasizing on product mixdiversity. A generic business strategy explains how a firm achievesand maintains competitiveness. The company’s continuous growth ispegged on its innovation.
Nike’sgeneric strategy has three main areas of concern: Cost Strategy, inthis approach, the company aims at improving its revenues by cuttingon production costs and reducing product prices. DifferentiationStrategy, in this approach the company is always innovating andcoming up with new products so as to differentiate itself fromrivals. Growth Strategy, the company`s growth is fixed on productdevelopment, market penetration, and market development.
NikeInc. serves a diverse market but lately, the company has narrowed itsfocus to a few key demographics. The company is keen on serving keymarkets that sharpen their focus and drive the company’s growth.The key demographics the company is focused on are athletes and women[ CITATION Mic141 l 1033 ].
Nikeis the world’s leading producer of athletic attires such asfootwear, jerseys, and sporting equipment. As compared to otherbrands, Nike`s high-performance products are most preferred byathletes. The company has also invested in young athletes throughsponsorships with local leagues and clubs. Kids who play sports getto wear its products.
Womenare the other key demographic that has put a lot of focuson. As a matter of fact, women’s training division is the fastestgrowing segment in the company. has expanded the productionof women’s apparel, specifically sporting tights and bras. Otherproducts meant for women that the company has come up with are lacetrimmed jerseys and skirts. Most women in their 20s and 30s, buy thecompany’s products for a specific reasons, to rock them to the gym,when running errands and going to brunch.
NikeInc. satisfies different needs of various people. The company hasdeveloped many products that mainly satisfy two areas, sports, andclothing. Nike has come up with diverse products that are unique tospecific sports like basketball, soccer, tennis and so much more.Technological products launched by the company, such as the Nike andiPod shoe brand, were products that company’s marketing departmenthad identified a specific niche for them. The specific needs of womenhave also been met by through its unique products that aresolely meant for women.
Linksbetween ’s. Core Competence, Strategy and Business LevelStrategies
Acompany`s core competency lies in the value of its products. Nike`score competence exists in its innovative product design and effectivemarketing. The two elements give the company leverage to beat theinternational competition from other brands. The main strategy thecompany has relied on all these years has been research, productdevelopment and product innovation [ CITATION Ala13 l 1033 ].The company has triedits best to be the leading innovator in the industry. With regards tothe business level strategy, the company has adopted an approach thatresembles differentiation. Through high quality-products andinnovation, has differentiated its products from those ofcompetitors. The link between Nike’s core competence, strategiesand business level strategy is product innovation [CITATION Jam12 l 1033 ].
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