2008). Secondly, IBM as the only sample is not representative. The company also began to contact potential suppliers in Korea, Thailand, China and Taiwan. We're here to answer any questions you have about our services. International Journal of Competitive Intelligence, Strategic, Scientific and Technology Watch Sciwatch Journal, vol 4 issue 1, April (2011) 1 NIKE Strategy: Strategy Management Albert Alarcón Ros Department of Business Management, International University of Catalonia E-mail: albert.alarcon.ros@gmail.com Abstract. (2008) also identified the risks and costs of collaboration. Thus, this intensive strategy supports Nike’s differentiation generic competitive strategy via product innovation. Initially, the Nike brand was on athletic shoes only. Nike is one of the pioneers of the manufacturing outsourcing strategy. Thus, they thought Porter only thought over the exports and outward FDI of domestic industries and further neglected the sales abroad by foreign subsidiaries. Merchant, H. (2014). The project will firstly introduce a literature review which provides the underpinning and explanation of these analysis tools. It is argued that one of the successful strategies is to produce products standardized and sell them throughout the market via the same ways (Levitt 1983). We use cookies for website functionality and to combat advertising fraud. Inform your marketing, brand, strategy and market development, sales and supply functions. In product development, these products remain attractive despite changing consumer preferences. While the Nike organization does focus on intensive growth strategies it also uses research development and other innovations. The business strategies have also been shaped by firm’s competitive advantages. In the background of global economics, multinational enterprises are growing rapidly. (Lee, 1998) And they also commented that this model is incomplete for small economics which are not parts of the trial nations and is only applicable to triad nations. As of February 2015, Nike uses a premium pricing strategy in which it continues to raise its prices despite other companies in the market lowering theirs, and it is considered a customer value-driven model. This because the promotional strategy in the marketing mix of Nike is extremely comprehensive, aggressive and uses all tools& media of marketing. See our Privacy Policy page to find out more about cookies or to switch them off. The alliances assist of some types such as cooperation agreement, franchising and joint venture (Bartlett et al., 2008). Most high individualism countries are wealthy countries with high GNP. Diversification. At first, government can provide a basic environment for industry development, since it could invest on infrastructure development, opening up capital channels, training information integration and so on. And only when enterprise could continually meet the new needs of manufacturers, “opportunities” will be developed. Nike Inc.’s generic strategy (based on Michael Porter’s model) is appropriate for its diverse product lines, ensuring competitive advantage. On the other hand, Nike’s intensive growth strategy reflects the company’s focus on innovation to develop the business. Below is the pricing strategy in Nike marketing strategy: Nike is a market leader in the sportswear and sports equipment and employs value based pricing strategy to facilitate growth in sales and profits of the company. Nike uses competitive prices, although as market leader can dictate the market prices in some occasions — this is … Nike was able to help its lead vendors establish an extensive network of footwear factories throughout Southeast Asia by guaranteeing a number of important orders and by placing Nike employees at these new factories. In the late 1990s, Nike reduced costs and the selling prices of its athletic shoes and other products. All work is written to order. A suitable strategic financial objective based on this intensive growth strategy is to increase Nike’s market share through cutting-edge technologies integrated in the design of sports shoes, apparel and equipment. The Nike corporation uses a mix diversity in product to help emphasizes its generic strategy for competitive advantage.Obliiously, this is a prime example of how a business goes about achieving, maintaining, accomplishing, and dominant in competiveness. However, flexibility and worldwide learning this kind of approach may be negatively influenced by this kind of approach. Nike is one typical MNC among them. Their brand is associated with providing top-notch … In fact, the opportunity is a two-way. Intensive growth strategies: A closer examination. Fewer rules are set in the organizations and deviant ideas are to some extent welcomed by the leaders. Hire a subject expert to help you with Nike’s Market Positioning Strategies. So, Nike’s initial target segment was ‘The Runners’. Opportunities can not be met rectifiable, and one opportunity could influence the four elements to change. Nike Inc.’s Mission Statement & Vision Statement (An Analysis), Nike Inc. However, market penetration is just a secondary intensive growth strategy because the company already has significant presence in the global market. Focusing On … Knight developed Nike’s business model when he was attending Stanford Business School in the early 1960s.He realized that most leading footwear companies. In the actual competition, Porter (1990) stated that sufficient in natural resources or low cost factors often result in inefficient allocation of resources. The competitive strategy that Nike pursues the most I would say is the product differentiation strategy in which Nike uses its own unique and innovative technology to stay ahead of the market with new ideas and style. And develops the capabilities to the world biggest leader of athletic footwear reduced costs and the subsequent up gradation competitive! Has Nike used to achieve practical guidance, some theoretical tools will be adopted of this strategy involves the of. Be negatively influenced by this strategy is a good home base for products! Four types of competitive advantage are indicated by every goals-means intersection indicates ( Bartlett et al., 2007.! 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