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Case Study - Nike: Spreading Out to Stay Together

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Case Study: Amazon: Nike: Spreading Out to Stay Together Nike, Inc. is an American multinational corporation that is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area. It is the world 's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. The brand alone is valued at $10.7 Billion making it the most valuable brand among sports businesses. Nike and Precision Castparts are the only Fortune …show more content…

The design should be utmost unique and further differentiated, not conforming to culture. Design is could be one competitive advantage so it is important that the manufacturing of the products are conformed to the original ideas of the maker, uninfluenced by any other factors involved in its manufacturing process. Example of this idea is the use of differentiation strategy of companies to gain competitive advantage. 4. Further Research—Gather information on Nike’s recent moves and accomplishments, and those of its rival Adidas. Are both firms following the same strategies and using the same structures to support them? Or, is one doing something quite different from the other? Based on what you learn, what do you predict for the future? Will Nike stay on top, or is Adidas the next industry leader? The advertising strategy differs from company to company. Generally, Nike believes in spending 5-7% of its revenues in advertising and endorsement. Nike has planned to spend $4.2 Billion until 2014 for endorsements alone. With the huge size of Nike, it is tough for other companies to allocate a big amount for their marketing expenses. Moreover, Nike has always an edge when it comes to advertising and marketing. The table below shows the advertising strategy for the major players in the industry. Company | Strategy | Nike | * Endorsing Athletes * Sponsoring Sports events * City based advertisements * Banners & Billboards * Themes on

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