Nike Case Study

Decent Essays
Case Study- Nike 1. Discuss how Nike's growth can be attributed to its targeting of diverse market global segments. In the 1960’s Nike was only making running shoes. At this point in time not many people knew of Nike or the Nike swoosh. In order to increase brand awareness, they started paying athletes to wear their shoes. However, very soon Nike learnt that in order to be a global brand they needed to appeal to different market segments, not just athletes. Hence, they then decided to tap more markets. In order to d so, they discovered 3 very distinctive market segments that they could attract. The highest on the pyramid were the Ultimate/Performance Athletes. These included big names in the fields of running sports. They are the…show more content…
Firm strategy, structure and rivalry: * Nike’s mission statement is to “bring inspiration and innovation to every athlete in the world” which shows that their goal is to stay updated with the emerging trends by constantly innovating and improving their products. * Nike’s objective has been to grow globally by grasping the three main market segments, which are the performance athletes, participant athletes and those that influence the world and the culture of sport. They also adapt their global strategies in a way that fits locally. * It is a known fact that competition in any given market makes firms more efficient and effective in their management styles as there are more players fighting for a market share. Fierce domestic rivalry with brands such as Reebok and Addidas has made Nike more innovative and dynamic in their marketing approaches. Government: Various third world country governments encourage MNCs like Nike to build their manufacturing units in their country to provide employment to local people. Cheap labor provided by these countries further reduces the costs of production for Nike. Chance: Risk is an important element in any business as it triggers growth and development. In it’s early years, Nike adopted different marketing strategies like paying athletes to wear Nike shoes (Steve Prefontaine), sponsoring sports teams and maintaining close partnership with idolized athletes to promote the brand. These strategies gave Nike a competitive
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