Nike Marketing Strategy

7428 Words Apr 4th, 2015 30 Pages
Description of marketing strategies applied by Nike Air Force
4.1 Challenges Forcing Nike to Focus More on Marketing
Sportswear is defined primarily as apparel and footwear made for sports participation, though is now also includes casual clothes worn by people for daily activities (E. Ko, C. R. Taylor, et al., 2012). The sportswear market is one of the most price-competitive markets throughout the globe. Within the UK, items of sportswear are purchased by almost 90% of people under 35 years of age, and by 76% of the population as a whole (Mintel forecasts, 2006). The international sportswear market is worth nearly 41.5 billion US dollars at the wholesale level, with Nike, Adidas, as well Reebok comprising some 14% of this market
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Figure 2 Porters Five Forces Analysis of sportswear industry Threat of new entrants (high)
There are an increasing number of professional sportswear providers within the market and many fashion retailers are targeting at sportswear market as well. For example, Under Armour, Founded in 1996, has successfully entered the high-performance apparel industry.
Bargaining power of suppliers (low)
Top brands can switch manufacturing factory from one to another easily to lower production cost as a huge number of suppliers are available within the market. Rivalry (high)
Although the industry is dominated by top brands such as Nike, Adidas, the competition within the market is intense as new comers, as well as fashion brands (such as Tommy Hilfiger) are constantly emerging within the market (Robert N. Lussier and David C. Kimball, 2012).

Bargaining power of buyers (high)
In that huge numbers of providers are available within the market and customers are better informed due to the development of information technology, customers can therefore choose the product with the most competitive price yet good quality. Some brands can constantly attract customers because of the brand loyalty developed over the years.

Threat of substitutes (high)
Many manufacturers from other industries, such as fashion industry, are trying to enter the market to split market share. For example, Doc Martens,

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