Afterwards Nike had made itself as a leading brand in U.S. athletic market and covered half of its market share. ISS 395. Supply chains and the efficiency of these chains has been critical to Nike’s ability to serve customers’ needs. Nike use it uses the value based pricing and price leadership strategies, where the price of the product is based on the value that is placed on that particular product by the consumer. In terms of internal strengths, the main thing that Nike has in … Net income also grew by 13 percent to 4.2 billion dollars. Its competitors are investing heavily in these areas. Its weaknesses are, however, linked to its strengths. Global presence: Nike is a major global brand with commerce in 45 countries. Nike is renowned worldwide as the brand for athletes. Product innovation: Since always, Nikeâs focus has remained on product innovation. It invests a lot in innovation which is a major part of its business strategy. The brand is seeing faster growth in e-commerce. Nikeâs headquarters are at Oregon in North America. It is because the government oversight and regulation of businesses has kept rising. In 2015, Nike opened its largest distribution center at Tennessee. From environmental to labor and product quality related there are several laws, several of which differ from market to market and affect businesses deeply. The brand has occupied the top position for several years in the industry. The employment level has grown giving people extra spending power which is good for brands like Nike. Environmentally, Nike has had an interesting background. Apart from their own manufacturing and distribution processes, Nike also keeps a watch over its supply chain partners since they have remained a source of problems rising from environmental issues in the past. There is undeniably a great business and marketing strategy behind a great and global brand. Prior to any acquisition or growth, Nike had ensured that the acquisition was in line with its socially responsible approach, once again recognising that any damage to the brand name could be seriously detrimental. Society and culture have a major effect on purchasing habits of consumers. The control has shifted into the hands of the customers in the 21st century. There is a very large investment in building a big brand like Nike which requires investment in infrastructure, technology as well as human resources and marketing. Marketing Strategy Module Code: MKT 306 Nike – A report on Nike trainers from Nike Inc. and its market analysis in the UK. Nike places a great deal of emphasis on its one brand and any damage to this brand is critical. This growth was driven by a 30 percent rise in digital commerce sales, growth in number of stores and 7 percent growth in comparable store sales. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Infact it is the leading brand in the industry closely followed by adidas and Under Armour. It is not just in marketing but down the supply chain and inside the distribution network too, the role of technological factors has grown. Nike’s brand value is US$ 18.6 billion in 2012, comprising more than 52% of its enterprise value* 30th most powerful brand in the world, and the number one in its industry. Based on these factors threat of new entrants remain low. The world has been through, Technological factors are also playing an increasingly dominant role in the expansion and growth of businesses. Co-creating value through customers’ experiences: the Nike case Strategy & Leadership, 36 (5). In this regard, it also reduced the number of suppliers to have only those onboard who are committed to quality and sustainability. Focusing on these things will affect the consumer experience of Nike as well as its sales and profits. The threat of substitute products arises mainly from the brands selling similar products. Nike has more offices in Europe, Middle East, Africa, Greater China, Asia Pacific and Latin America. Globally too, the athletic footwear industry is growing at a very fast rate. Nike Success.  Ramaswamy, V., 2008. It has six important distribution facilities in Memphis Tennessee, two of which are owned by Nike and rest are leased properties. The global brands like Nike are most affected by this trend. Top design ability and high quality products have been the central factor to Nike’s success. Moreover, Nike only partners those who can match its quality standards. Brands are engaged in a race for remaining technologically ahead of their rivals. Its excellent marketing has ranked it among the best marketers of the world. In U.S. too, growing economic activity has resulted in healthy spending by the consumers. SAGE. â Customer loyalty: Based upon the high level satisfaction Nike generates, it enjoys high customer loyalty than its rivals. It is expected to rise past 115.6 Billion dollars by 2023. In 1982, the first television advert was aired during the New York Marathon. & Chandler, D., 2006. Nike makes some of the best ads in the business. No plagiarism, guaranteed! In particular, the under-age workforce has been active in pursuing legal actions against the companies. Registered Data Controller No: Z1821391. Rapid innovation processes 3. It reflected the string global revenue growth. Competitive pressures against the brand have also kept growing. Branding was premium from the beginning with the relationship that it developed with the Wieden and Kennedy advertising company. Nike did not. & Montgomery, C.A., 2005. Nike, IKEA and IBM’s outsourcing and business strategies: Profits and perils. These factors are also dominant in the area of marketing. Competitive Environmental Strategy: A Guide to the Changing Business Landscape. The overall bargaining power of customers is high which gets moderated to a small extent by the brandâs strong image, marketing capabilities, and the level of trust and customer loyalty. 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. Since then Nike market also expanded to Asia in 1982 when India hosted the Asian Games. The international brands face several kinds of pressures while operating in a highly competitive market. Since October 2017, Nike has worked to rebuild their business model. International expansion â Faster international expansion is essential if Nike wants to see faster growth. Competing on the Edge: Strategy as Structured Chaos. As of May 31, 2017, the NIKE Brand had 985 Direct To Consumer stores in operation. You can view samples of our professional work here. This was 66 higher than the number of DTC stores previous year. Some of these sources have cerated sustainable advantage for Nike and the rest can be strengthened further through focus on customer experience, marketing and innovation in future. Competitive pressures against the brand have also kept growing. Nike is the leading brand in sports shoes and apparel industry. Nike’s strengths are the primary drivers of the company’s growth and global leadership in the sports shoes, apparel and equipment market. If you need assistance with writing your essay, our professional essay writing service is here to help! Nikeâs production strategy has innovative technology at its core. Also, Nike is in the industry which is by and large affected by the product life cycle which means that sometimes it’s very difficult for the company to respond to the fad timely. What You Need To Know About Marketing for Your New Business, Easy Ways Businesses Can Incorporate Sustainability. 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