Marketing Analysis : Nike 's Strategy

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Introduction: The sports fashion industry refers to the apparel and footwear people exercise in. This industry has seen growth as there’s more demand for trendy sportswear, most notably women as well as an increase in competitors; new look, Topshop and boohoo. Young people are the biggest sportswear buyers and are the most interested in innovation. (Sender, June 2015) Nike, as a company, fit into this market as the leader in sports fashion as they rank #1 in most valuable sports fashion and #18 overall on most valuable brands. (The world’s most valuable brands, 2015). The objective of this assignment is to critically evaluate Nike’s strategy. This will be done by analysing their environment, their Industry and their competitive and finally…show more content…
Technological: The internet provides consumers with easier ways to compare prices as well as services that provide reviews of Shoes, gives consumers more choice and knowledge in what they are buying. Stage in industry lifecycle: Mature, Nike is at the stage where effective business model provides the company an advantage over its competitors. Porters 5 forces Threat of substitutes: low, consumers substitute for athlete footwear is low. Low quality sportswear has bad reputation which lowers its value. Threat of new entrants: High amounts of capital required to generate revenue required. Bargaining power of suppliers: low, small factories dependent on work, abundance of materials needed. Bargaining power of customers: high, constant need for high quality footwear to survive, consumers changed preferences over the years. Competitive rivalry: high, new look, top shop and boohoo have expanded into the market, as well as reebok and Adidas Loyal consumers. Overall the environmental issues sportswear and footwear face are all very miniscule since the industry lifecycle. There is concern to the amount of new competitors looking to invest into this industry. Industry Life Cycle During the maturity stage the effectiveness of the company’s business model provides the most advantage over its competitors. Competitive Landscape What do customers want? Nike’s main target segment
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