Advantages And Disadvantages Of Nike Brand Extension

Attention Getter: As Walt Disney once stated, “To all who come to this happy place, Welcome. Here age relives fond memories of the past, and here youth may savor the challenge and promise of the future. Hoping that it will be a source of joy and inspiration to the entire world (IMDb, n.d.).”

Nike is the leading and yet renowned supplier of athletic apparel and shoes. The company controls close to 33% of the global athletic shoe market (Dogiamis & Vijayashanker,2009).Nike was founded by Bill Power and Phil Knight in 1962 as a Blue Ribbon Support and then was later on renamed to Nike in the year 1968 (Patrow,2003).The company supplies very high quality product in close to 100 countries with major markets being located in the U.S,U,K, Asia Pacific as well as in the Americas. The company has managed to attain its lead and legendary position via the application of innovative and yet attractive product design which is backed by quality production as well as well crafted marketing strategies.

As a tourist corporation, Walt Disney is similar to a machine that regulates people's thoughts, compromises their individuality, and alters their perception on certain aspects of society.

“The mission of the Walt Disney Company is to be one of the world’s leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world” (According to "Walt Disney Company Mission Statement" (2011)

The Walt Disney Company’s business model is to create value by providing family entertainment to people all over the world. The company owns television networks and various production studios as well as many different parks and resorts that provide families with the opportunities of creating memories. The company also offers consumer products and interactive programs that provide families with further entertainment. By offering consumer products like toys, DVD’s, books, and many others, the company goes into the customer’s home and provides permanent entertainment. The company’s eleven parks and forty-four resorts are spread all over the world and provide the company with customer value

The Walt Disney company is not only an overpowering monopoly full of happiness, childhood joy and dreams. The company prides itself in provided quality entertainment ment for the whole family. On a deeper level though the company is able to accomplish something that is in my book nothing short of remarkable. The Walt Disney Company through the many topics explored in their films are able to introduce and teach children important life lessons with the help of songs and funny dialogue. For example, the Lion King teaches children around the world that “the past can hurt but you can either run

6). This strategy is a major component of Nike’s business strategic level plan. In applying this strategy, Nike has attained a great deal of consumer insight, which it uses to offer uniquely designed premium products to the athletes. Still on product differentiation, Nike focuses more on research and development at a greater level. These unique features to Nike, have transformed the competition levels in this competitive industry, leading to a trend of a paradigm shift in the market. Most consumers opt for Nike branded sports products and apparels, at the expense of the other brand names.

The Walt Disney Company is known throughout the world as a leader in entertainment. The strategies that the Walt Disney Company have used include competitive advantage, a growth strategy, and a renewal strategy. When a person mentions a theme park, Disney is the first park that comes to mind. They were not the first theme park, but they have mastered the art of creating memories for adults and children alike. As a former employee of Disney I can vouch for the amount of effort that goes into

The Disney theme park is an organization that focuses on customer satisfaction. The management style at the Disney theme park is very diverse and non-traditional. All employees from janitors to performers are called “cast members.” Managers at the Disney theme park focus on the role of employees in service delivery. Employees are broadly trained in communication, quality awareness, and customer service. Employees at the Disney theme park have regular team meetings for effectiveness evaluations. Disney theme park employees are additionally made

Nike’s main strategy revolves around product branding. Their brand compromises of a swoosh logo which is accompanied by a message of “just do it”. The logo was imprinted on all of their products with the message developed to express the individuality of their target group. The branding was further promoted by Nike’s relentless approach on the quality of their product as demonstrated when considering overseas business opportunities, quality must not be compromised in order to do so. This ensures consumer satisfaction and loyalty towards Nike.

Brands use different strategies to create competitive advantages to beat with their rivals. Some companies use “Overall Cost Leadership” to increase profit by reducing costs and increase market share by lowering price. Some companies use “Focus Strategies” to select a group of market and tailor its strategy to serve that group. The others use “Product Differentiation” as a strategy to obtain a premium price by making unique products. Nike, with its differentiation strategy, the company is continuing to separate its self from the competitors by using its superior technology and innovation. This paper mainly discusses on the company’s product differentiation and analysis how the company using this strategy to build its brand image and become a market leader in sportswear industry. A brief discuss about Nike competitive advantage which related to its broad differentiation aspect and the company product life cycle are also presented on this paper.

This form of marketing can be described as brand positioning or brand architecture. Brand positioning can be best described as a motivational reason to buy one's product over others, "is guided, directed and delivered by the brand's benefits/reasons to buy; and it focuses at all points of contact with the consumer" (Management study guide, 2011). Nike creates value and sustains competitive advantage over other competitors with this technique because image is a big factor in today's markets, a large number of consumers are likely to develop product intimacy; those who care more about the quality rather than the price. This takes us to Nike's price strategy, which they target consumers who focus more on product intimacy and care less about the price. Giving Nike the advantage over other competitors setting higher prices for its products; consumers who believe a product to be of high quality are prone to pay a higher price.

In order for Nike Go to be successful in the sports and energy drinks market,

Nike’s organizational Form reflects a conglomeration of resources, processes and people around the activities most critical to their target customers in terms of its Value Proposition. It decided therefore to concentrate in depth on the critical activities and competencies rather than increasing the breadth of its

Even in the United States, Disneyworld (Florida) and Disneyland (California) vary in there social forces. Cast Members (Disney’s term for employees) in CA are trained to be friendly and greet every guest, while in FL they are trained to only greet guests who seek them out. The political, legal, and regulatory factors again, vary from theme park to theme park. The parks in the United States have more restrictions than say those of Hong Kong, China. In the U.S, minors (age 15-17) are only allowed to work 20 hours a week. In Hong Kong, young persons (ages 15-17) are allowed to work up to 48 hours a week. Regulatory factors such as this differ in each region. The Walt Disney Company Parks and Resorts has quite an extreme variety of natural environments. The weather in Florida for example can get in the 100’s regularly whereas in California it can get as cold as the low 50’s. These weather conditions actually are a big factor in guests determining which park they want to visit. Technology seems to stay consistent between most of the theme parks. In fact, many of the theme parks have some of the same rides at their parks. The global forces actually can create threats to the company. The addition of the newest theme park to the company, Shanghai Disney, took several years to become accepted. This has been common throughout the duration of The Walt Disney Company. Many people vote against a new theme park or resort because of the crowds that it