Executive Summary: Constant innovation has been the byword for Nike's success.This case study analyses the ever-evolving marketing strategies adopted by Nike to become a global brand… Thanks it will help me my upcoming presentation. We will address these strategic issues by focusing on the strengths and weaknesses of the Nike Company. This has greatly helped the managers to lay a plan for the organization and take it where they want it to be. Figure 6: Michael Jordan advertising Jordan shoe. This has led to better performance for Adidas. who wrote this article ? The company specializes in athletic wear, providing footwear, apparel, athletic equipment, and accessories. Through the interviews, it was established that Nike did have a toxic working environment, where sexual misconduct was rampant. Nike’s Pricing and Business Strategy. The article was enlightening. Nike is focused on its footwear business, which can be somewhat risky considering that market trends change and most companies sustain themselves through a product diversification strategy. It can be said Nike has potentially implemented all the strategy to introduce new products. In the industry, Nike’s has maximum or main competition; direct competitors of the company include Adidas AG, Puma AG, and New Balance etc. Nike has set business plans through strategic management in order to assess its business areas. I am glad you liked our analysis. Nike uses this innovation in order to become a more sustainable company, which is the second key aspect of its business strategy. References Nike's Strategy to Become the Leader in their Market. Nike Case Analysis 717 Words | 3 Pages. Business level strategy analysis/recommendations. Abstract information on Nike's business diversification, deriving its key business segments and highlighting its major competitors 8. 5. Nike has chosen to use a localization strategy particularly with respect to Twitter and Instagram (McCulloch, 2014). Nike, Inc. is an American multinational corporation. Thanks Taku, I am glad you liked our analysis. Although the brand is still in debt, the next few years look promising. This involves … Here’s why. However, the customers of the Nike’s have the brand awareness and this is the reason that the company put more effort in the products. Firstly, assessment task details and instructions 1500 ONLY. 8. Nike needs to develop a strategy to ensure that the counterfeiting of their goods doesn’t affect their core business model, perhaps by taking legal action against counterfeiters or with a clever marketing campaign that encourages consumers to buy the real thing. The competitive strategy that Nike introduced at the end of the 1990's concentrates on honing the focus of our marketing strategies and product offerings through product differentiation. Save my name, email, and website in this browser for the next time I comment. But there is … This type of strategy includes two or more of the generic strategies from Porter’s model. can i know the name? PGDM – B Group – 6 Avishek Singh 113Mohammad Shadab 129 Pratik Akerkar 139 Somjeet Dutta 152 1 2. Let us say Nike wants to capture a first world market like Australia then first Nike will do a SWOT analysis to check the environmental conditions first. Share your thoughts and experiences in the comments section below. SWOT Analysis of Nike… Basic Strategy of Nike. NIKE Part 1: Organizational Analysis 2/6/2013 NIKE Part 1: Organizational Analysis Table of Contents Executive Summary3 Overview and History4 Organizational Strategies and Innovation5 Organizational Design and Effectiveness6 Competitors7 Organizational Structure7. Besides, the company seeks visionaries, leaders, and achievers. However, new entrants required the huge amount for the capital; therefore, Nike has the maximum market share in the footwear industry (Reuters, 2016). very grateful analysis. Interpretation of Nikes USP or unique selling proposition, mission statement, and vision statement. Here’s a detailed breakdown of Nike SWOT analysis. A management consultant and entrepreneur. As of 2017, over 60% of revenues came from footwear and over 28% in apparel. 2. Nike is the top athletic manufacturer in the world. Nike’s strengths are the primary drivers of the company’s growth and global leadership in the sports shoes, apparel and equipment market. The organization has been able to achieve, this through aggressive marketing, innovative products, and quality production. It’s to easy to understand and explain to others.. Sexual Harassment: Former female employees also pointed out that sexual harassment and misconduct was very common in the company. The competitive strategy that Nike introduced at the end of the 1990's concentrates on honing the focus of our marketing strategies and product offerings through product differentiation. The entire. Executive Summary: Constant innovation has been the byword for Nike's success.This case study analyses the ever-evolving marketing strategies adopted by Nike to become a … Dominant Economic Features Analysis. Strengths. Did you find this article interesting? What sort of marketing strategy has Nike used to achieve and maintain this level of market dominance?. How Does Credit Karma Work and Make Money? Nike is focused on its footwear business, which can be somewhat risky considering that market trends change and most companies sustain themselves through a product diversification strategy. This article was very interesting. Porter’s Generic Business Strategies model- NIKE business strategy Description. Strategic management is a technique that Nike, Inc. has been able to apply to determine how it is performing in its current position and how its future should be. The CEO ensures that Nike will help to contribute. In addition, we have the promotion, which is also known as the marketing communications It can be said Nike has potentially implemented all the strategy to introduce new products. Strategic Management; SWOT Analysis of Nike; SWOT Analysis of Nike . Thank you ! Nike’s local sales for the current quarter in China, for instance, are forecast to be roughly flat year on year, rather than declining. The company’s primary goal was to dispense high-quality, low-cost Japanese athletic shoes to the American buyers. Copyright © 2021. The global clothing apparel market is oligopolistic with for players Nike, adidas, H&M and Zara having a combined market share of 7.0%. Nike- Strategic analysis 1. Above all, Nike is a marketing company. Lot of clarity in the format – the SWOT is explained. Nike Success. I am guessing the presentation is for school? Business Analysis-Nike's free workout apps are key to its high-end pricing strategy. Introduction Strategic management can be defined as a bundle of decisions and acts which a manager need to do to achieve better performance and a competitive advantage for their organization. – SG. United States. Nike’s primary goal is to supply athletes with exceptional products and wearable that aids them in better sports performance. Research … In addition to this, effectively responding to its. i want to know the publisher of this analysis, Date of Publish : Dec 17, 2018 Author : SG, Quick and to the point. Not only does it own 48% of the American athletic footwear market, but its share of the basketball footwear market is at a staggering 96%! Course Hero, Inc. Course Hero is not sponsored or endorsed by any college or university. The remaining comprised equipment and the Converse Brand. It’s safe to say Nike’s at the top of its game right now. iii. The Swoosh. The company’s primary goal was to dispense high-quality, low-cost Japanese athletic shoes to the American buyers. To stay on top of their competitive game, Nike focuses on product differentiation and cost leadership. The corresponding intensive strategies grow Nike’s global sports shoes, apparel and equipment business. We realize that the team-mentality that captured the spirit of athletics in the late 1980's and early 1990's has been replaced by a sense of individualism. Another opportunity is for Nike to improve its product mix to attract more customers, especially non-athletes. Jump to top Search. But to achieve the reach required to scale its business, Nike’s distribution strategy had long-relied on third-party retailers to sell its products, even if the consumer experience offered by those partners diluted its brand. In addition, we have the promotion, which is also known as the marketing communications Multiple female employees reported that they had complained to the HR but saw no action being taken from their part. Strategic Analysis of Nike 4 Executive Summary Nike, previously known as Blue Ribbon Sports was created in 1962 by Phil Knight and Bill Bowerman (Pandey, 2017, p. 2). Join our newsletter today to get updates on the latest posts! The New York Times conducted interviews with 50 former and present Nike employees to investigate the company culture. Thank You. All rights reserved | contact@bstrategyhub.com | Logo designed by Looka. Executive Summary: The famous shoe Company with the swoosh logo has gone from strength to strength, since its inception in 1962, headquartered at Beaverton, Oregon to emerge as an industry leader – the most competitive sports and fitness company(www.nike.com). As a large organization, Nike accomplishes more than just providing the above-listed, items to the world’s best athletes. Nike Inc.’s generic strategy (based on Michael Porter’s model) is appropriate for its diverse product lines, ensuring competitive advantage. It is a process which managers build strategies to get better results in performance. Several sporting teams are on the brink of collapse. Nike is headquartered in Beaverton, Oregon, USA. Another strength of Nike is that it is a global brand and its logo i.e. The biggest strength of Nike is that it is an extremely competitive organization with its approach of “Just Do It” slogan for its brand epitomizing its attitude towards business. The company has numerous traditional and non-traditional channels in, various countries that target its main market areas such as Asia Pacific, Europe, the and the. Porter's 5 Forces . Contents (Jump to) 1. Nike is a sound stock based on its steady stock performance and growth in earnings per share, revenue and net income, strong balance sheet, and management approach. Nike’s Global Women’s Fitness Business: Driving Strategic Integration | [Your Name] | Introduction and Background In 2006, the American footwear, apparel and equipment manufacturing giant announced a major corporate reorganization that would switch the company’s attention from a product orientation to a category-driven approach. Results of Nike's new Customer Experience distribution strategy in place for over a year in a study by Euromonitor. Deliveroo Business Model | How Does Deliveroo Make Money? Here’s why. Based on our understanding and analysis of Nike’s Strategy here are some recommendations for them: They can focus on the different parkour and aerobic product. This was also fuelled by how Germany, had hugely dominated the domestic industry (Mullins, 2017, 78). Results of Nike's new Customer Experience distribution strategy in place for over a year in a study by Euromonitor. Nike makes money by primarily selling footwear via wholesale customers that distribute the Nike brands across the globe. S.K. In 1985, in the US alone, athletic footwear was a 5 billion dollar business with 250 million pairs of shoes sold. Thus, Adidas and Nike have different marketing strategies in how both companies interactive with consumers online. Business Analysis-Nike's free workout apps are key to its high-end pricing strategy. Coupled with its iconic “Swoosh” logo and its equally catchy tagline, Nike’s strength is that it has emerged as a “Can Do” company. Conclusions. Hi Divya, Most of the information is from Nike’s annual report and few points have embedded hyperlinks for references. Business level strategy analysis/recommendations Nike’s major competitors consist of companies such as Adidas, Under Armor, and Rebook. The, organization culture has thrived for a long time considering how it rewards imagination and, embraces diversity. By Hilary George-Parkin. Amul SWOT Analysis 2019| SWOT Analysis of Amul, Nestle SWOT Analysis 2019 | SWOT Analysis of Nestle, Ford SWOT analysis 2019 | SWOT Analysis of Ford. The following are the generic competitive strategies implemented in Nike’s combination strategy: 1. “Our digital business in China has accelerated even further over the past months and we are now seeing double-digit increases in retail traffic week over week, with some stores having already returned to prior-year levels,” Donahoe reported. From releasing new product lines to building new brands, to outsourcing, and establishing a global presence alone is an extraordinary achievement. The management employs strategic management components such as vision, environmental analysis, strategy creation, strategy implementation, and strategy assessment (Nike, Inc., 2009). References Nike's Strategy to Become the Leader in their Market. Your information is safe and will never be shared. One of the critical ingredients of Nike success is its ability to create demand for its products. Strategy Analysis of the Nike Company. Copyright © 2021 Business Strategy Hub.   Terms. It’s a great help. Nike : Business Analysis : Nike 1484 Words | 6 Pages. Nike’s local sales for the current quarter in China, for instance, are forecast to be roughly flat year on year, rather than declining. 3. Tell us what you think? The remaining comprised equipment and the Converse Brand. The Washington Post. Organic Growth Strategy. Through this SWOT analysis of Nike, you will be able to understand the business model of the brand. The entire controversy has significantly affected the company’s image. Business segments in which Nike operates has a large number of local & national players. The previous strategy that Nike held now ‘no longer aligns’ with the brand’s core ideals – meaning that the SMEs that bought and sold wholesale products won’t have that option anymore. Nike has grown exponentially in the last decade. The Nike brand was launched at the U.S. Olympic trials in 1972 and Steve Prefontaine became the first athlete to wear Nike shoes and advertise them(www.trizera.com). Currently, Nike does not only, distribute and produce athletic shoes in all markets but also has over 40% of its total sales, derived from subsidiary ventures, sports equipment, and athletic apparel (Laplume, Petersen and, Pearce, 2016, p. 599). It was a validation of a strategy that Nike prioritised three years ago, dubbing it “Consumer Direct Offense,” but the seeds of the approach go back almost a decade. Nike is headquartered in Beaverton, Oregon, USA. This particular strategy appears to work well on generating responses not only to new product launches, but also to opportunities for online purchases, in-store purchases, and participation in Nike … The major threat to Nike is the imitation that goes hand in hand in various markets which are affecting its revenues and businesses. Author: S.K Gupta First published: December 17, 2018 Last updated: Oct 06, 2020. Market analysis in the Marketing strategy of Nike – Business segments in which Nike operates has a large number of local & national players. The fiscal 2020 proved to be successful for Nike. Bibliography. Strong brand image 2. … Nike has the opportunity to improve its labor practices to address controversies in this area of the business. Nike is an international corporation that is involved in the designing, developing, producing and global sales and marketing of footwear, services, accessories, equipment, and, apparel. The management employs strategic management components such as vision, environmental analysis, strategy creation, strategy implementation, and strategy assessment (Nike, Inc., 2009). Some even left their jobs. The pandemic has discouraged physical interaction and gathering with sporting events canceled or postponed. Adidas Strategic Analysis. Strategic Analysis of Nike 4 Executive Summary Nike, previously known as Blue Ribbon Sports was created in 1962 by Phil Knight and Bill Bowerman (Pandey, 2017, p. 2). 2. Thank you. Marketing strategy helps companies achieve business goals & objectives, and marketing mix (4Ps) is the widely used framework to define the strategies. Nike’s strengths are that the company is extremely competitive; the CEO of the company is often heard saying that business is a war without any bullets. Indeed, Nike has continuously improved its operations management. We respect your privacy. This particular strategy appears to work well on generating responses not only to new product launches, but also to opportunities for online purchases, in-store purchases, and participation in Nike events. Gupta understands how to create and implement business strategies. Examples of Nike's Marketing - To learn how you can use Nike's Marketing strategy to grow your business, listen to this podcast episode 8. The brand has excellent marketing campaigns and, Recently, a former employee accused Nike of, Multiple female employees reported that they had complained to the HR but saw no action being taken from their part. PGDM – B Group – 6 Avishek Singh 113Mohammad Shadab 129 Pratik Akerkar 139 Somjeet Dutta 152 1 2. 1926 Words | 3 Pages the most notable in the current business world can relate... 60 % of revenues came from footwear and over 28 % in apparel this has been the keynote of …! Top of their strategic location around the world ’ s business growth strategy using my... 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