What competitive strategies are used in Nike’s combination strategy?
The following are the generic competitive strategies implemented in Nike’s combination strategy: 1 Cost Leadership Strategy 2 Differentiation Strategy More ...
What are Nike’s strategic objectives?
A strategic objective linked to market penetration is to increase Nike’s market presence by increasing the number of authorized retailers. In addition, a financial objective related to this intensive growth strategy is to increase Nike’s sales revenues through more sales to sports enthusiasts in current markets. Market Development.
How has Nike’s marketing strategy changed over time?
As the marketing landscape has changed since the 70s, so has the Nike marketing strategy. In fact, it’s remarkable how well the brand has adapted its approach to new trends and technologies without losing the core of their identity or brand voice.
Is market penetration Nike's key growth strategy?
However, market penetration is just a secondary intensive growth strategy because the company already has significant presence in the global market. The cost leadership generic competitive strategy empowers Nike to penetrate markets based on product affordability.
What is the strategic objective of Nike?
A strategic objective linked to market penetration is to increase Nike’s market presence by increasing the number of authorized retailers. In addition, a financial objective related to this intensive growth strategy is to increase Nike’s sales revenues through more sales to sports enthusiasts in current markets.
What was Nike's competitive strategy in the 1990s?
In the late 1990s, Nike reduced costs and the selling prices of its athletic shoes and other products. This generic competitive strategy helped the company regain its competitiveness, especially against Adidas. Also, Nike’s differentiation generic strategy provides unique products.
How does Nike support growth?
This strategy facilitates the company’s growth by targeting new markets or market segments. For example, Nike enters new markets in Africa and the Middle East to increase its shoe sales revenues. Alongside product development, the company applies the market development intensive growth strategy by investing in new technologies to penetrate new market segments, such as segments composed of bodybuilders. However, the saturation of Nike stores and retailers around the world means that this intensive strategy has only a supporting role in the company’s growth. The generic competitive strategy of differentiation helps the company enter new markets, based on product attractiveness. A strategic financial objective under this intensive growth strategy is to increase Nike’s profitability by entering new markets in Africa and the Middle East.
How does Nike market penetration work?
Nike’s secondary intensive growth strategy is market penetration. In this strategy, the company grows by increasing sales revenues in existing markets. For example, Nike increases its stores and retailers in the United States to sell more athletic shoes to American consumers. However, market penetration is just a secondary intensive growth strategy because the company already has significant presence in the global market. The cost leadership generic competitive strategy empowers Nike to penetrate markets based on product affordability. A strategic objective linked to market penetration is to increase Nike’s market presence by increasing the number of authorized retailers. In addition, a financial objective related to this intensive growth strategy is to increase Nike’s sales revenues through more sales to sports enthusiasts in current markets.
What is Nike's generic strategy?
A generic strategy, according to Michael Porter, defines how a business achieves and maintains its competitiveness. On the other hand, Nike’s intensive growth strategy reflects the company’s focus on innovation to develop the business.
When was Nike founded?
Founded in 1964 , Nike Inc. has grown to become one of the biggest players in the global athletic shoes, apparel and equipment market. To keep its position and competitive advantage, Nike must ensure that its generic strategy and intensive growth strategies are always suited to current business conditions.
What is the strategic objective of cost leadership?
A strategic objective based on the cost leadership generic strategy is to grow the company’s competitive advantage through new technologies to reduce production costs. A financial objective based on the differentiation generic strategy is to maximize Nike’s profit margins, such as on new sports shoes.