11 0 obj •Objective 2: Discuss how to design business portfolios and develop growth strategies. 4 0 obj Nike Uses A Leader R&D Strategy To Achieve Differentiation. Branding play a key role in differentiation strategies as it allows a company to become synonymous with quality as well as a price point. Nike Success. Differentiation strategy is one of three Porter’s Generic Strategy; others are cost leadership and focus. <> Strategy used. Click To Tweet. endobj Pages 32 This preview shows page 13 - 20 out of 32 pages. Each segment is carefully examined in terms of physical capabilities, sociological needs, and design preference. Nike’s marketing message has made everyone who wishes to participate in sports feel as if they can achieve their athletic goals. �̴��_zQ�"?�oc5*[����y�M\�!� �ju�*�����ܬ:M����5��1A�|�w The differentiation strategy of Nike is quite competitive so Nike should ensure any international marketing strategy it applies should enhance its superior brand name. Nike: Sourcing and Strategy in Athletic Footwear This case gives students an opportunity to examine the costs and benefits (pros and cons) of vertical integration and outsourcing as vehicles for achieving a firm’s strategic objectives. 3. Nike and Adidas are shoe manufacturers does not mean that they should have identical organization designs. <>>> Phil Knight even decided to take a break in the 83-84 year, although he was still chairman and CEO. endobj 13 0 obj .Xl������^vx�P&�o�شG�J&�Q��H&�)�����pF "�R�1R(�U��X�b�4�nN�ĥ�� �E���+��ɸ�\��M�#S�S24��Iw�� 9 gέG���S^>%��[!7[�*a-�jI�O���dW3���-�c���V*��7X�X��63 � z�X#Zp�p%�Y��0��Զ%�&ѭ�f� �Cz�^��A���C� <> stream endobj Thus, this intensive strategy supports Nike’s differentiation generic competitive strategy via product innovation. By focusing on their product line, they are able to produce high quality products that meet customer expectations. <> Understanding and facilitating organization design thus requires an understanding of how and why strategy has an impact on the design. <> In addition, the premium pricing strategy also caters for the company’s broad differentiation strategy. During that time, its main goal was to produce low cost, high quality shoes for Americans to break Germans control over domestic trade (Nike, Inc., 2009). ��M?Gik|Fk^��7�$����_��m2�I�b8�ݙ_�J�T�Wߕ`�(t�H�a3M��?$Ź�|�\��Uݶ��Xl1���D:�`I��1�R��!��`�O�C���s�*����ǿ�gV=91�\M(��R�K��d�*1��?~�5��I$�'�p�]�C6p�C!�����FW%��~�*{BW�W9�h��{�8�)*�)�l9G�'����]�A����>�a���ݴ���$�,�[ᤜ/5�l�b"�)&l~G�����}Q���,sc�;�l�:Q�iB�C�F��6-�>�x�` With Nike manufacturing products with its cost effective business strategies through factories in the developing nations, criticisms regarding its abuse of child labor have affected its popularity to an extent. Read the complete Sustainably Defined Idea Paper on Nike’s leadership efforts. The findings of the study highlight Nike’s strategies which focus on innovation and emphasis on its research and development department, provision of premium pricing for its customers, broad differentiation strategy, market Segmentation Strategy and Closed-Loop strategy. •Objective 3: Explain marketing’s role in strategic planning and how marketing works with its … <>/ExtGState<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Nike used to operate under the strategy of “Guerrilla marketing” to promote its products, a strategy and concept that they had to abandon and change once they overpassed 1.2.3 Focus Porter initially presented focus as one of the three generic strategies, but later identified focus as a moderator of the two strategies. Nike is very well known for high quality and premium prices and Reebok is also a strong brand but it provides high value with a lower premium. States and Asian markets, Nike uses product differentiation as its main product strategy while employing the use if price-based product strategy when dealing with the African market. Corporate Level We use strong diversification in what we sale to the differentiation of our consumers. Leadership Practices in The Post-Bureaucratic Era 1575 Words | 7 Pages. The mid1980s Nike had fallen off the pole position of being the industry leader. Another big part of Nike's product differentiation strategy is its relationships with its customers. New Balance is using a differentiation strategy in order to gain market competitiveness and increase the success of their market penetration. • to decide on a strategy, you therefore need to identify those resources. Nike, Inc. is a marketer of sports apparel and athletic shoes. It insulates a firm from competitive rivalry by creating brand loyalty; it lowers the price elasticity of demand by making customers less sensitive to price changes in your products. Thus a differentiation strategy helps create barriers to entry that protect the firm and its industry from new competition. II. <> stream endobj '��ȹ|�F8>����GN��^(����7�����ͯ���4p�I��f2Ut�l'S�M� �O�i������Í��ҋ�I�P��D��a5���˼-��hr�`j�eYL���7yc92��L%2���m7x����$p���8�ߜ��޾��ɣ̜�Px"����{�(�y�$�-�|��l�8 �xO��|�o�-M��Q�'��> S�g2�5�v��Ð$�� ��:� r���4ڮY�m4/���Be�aр��qYD� Product Development; Amazon’s third, supportive intensive strategy for business growth. He already thought that it would be beneficial to the company if it used manufacturing plants in other countries outside the United States, because the labor costs would be much lower. endobj Stay true to your brand. Innovation is one of the ways of Nike for going ahead and providing new technologies for all kinds of goods they create. 16 0 obj Adidas marketing mix promotional strategy is to use a 360 branding strategy covering all aspects of media and communication. The following post is an abstract of a longer document. Starting from its Swoosh logo to the famous ‘Just Do it Slogan’, these are important factors differentiating it from its competitors. Nike’s customers consist of both armature and pro athletes who use the shoes in sporting activities. Position 5: Focused Differentiation . Nike also incorporates the "cool" look into all types of shoes and merchandise. How To Apply The Nike Marketing Strategy To Your Own Brand . 9 0 obj If Nike rules the market then the credit also goes to its great and well differentiated marketing strategy. endobj endobj <> The history of Nike’s marketing strategy is interesting in itself. Nike is the world’s leading brand of athletic footwear and one of the top brands of athletic apparel and equipment. The goal of this intensive growth strategy is to develop and offer new products to gain higher revenues. endobj endobj Nike's marketing strategy has succeeded in sustaining a global brand while many of their competitors have come and gone from the spotlight. Air Jordan Communication and Marketing Strategy Air Jordan is a shoe and apparel brand created by Basketball legend Michael Jordan in the year 1985. <>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/Annots[ 11 0 R] /MediaBox[ 0 0 595.32 841.92] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> 8 0 obj The big risk when using a differentiation strategy is that customers will not be willing to pay extra to obtain the unique features that a firm is trying to build its strategy around. 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