Nike Strategies

NIKE, Inc., is a company that was founded in by William Jay Bowerman and Philip H. Knight in 1964, and was originally called Blue Ribbon Sports, Inc. It’s name was changed to Nike, Inc. in 1971. It’s base of operation is located in Beaverton, Oregon. NIKE, Inc., is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities worldwide. Entirely owned Nike subsidiaries include Converse Inc., a brand that develops, advertises, and sells athletic apparel and accessories; and also Hurley International LLC, which designs, markets and sells surf and youth lifestyle clothing and many different accessories. Its athletic footwear products are designed primarily for specific athletic use, although a large percentage of the products are worn for casual or leisure purposes. Nike offers products in many different categories such as men’s/women’s training, running, basketball, golf, and more. The company also sells products designed for children and youth athletic activities such as baseball, cricket, lacrosse, outdoor activities, football, tennis, volleyball, walking, and wrestling. Also, Nike sells sports apparel and accessories; and markets apparel with licensed college and professional team and league logos. Further, it sells a line of performance equipment and accessories, including sports bags, balls, eyewear, digital devices, bats, gloves, protective equipment, golf

In this project, I have chosen to provide a microeconomic-based analysis on NIKE Inc. The study will include the analytic overview of the general market of Nike brand, as well as the information about the goods, service, and areas of operation. Throughout the research of this paper, I will discuss the cost of production, as well as the supply and demand in relation to microeconomics. Moreover, we will look at how supply and demand of this market regulates the equilibrium of quantity and price, as well as the economical efficiencies where the surplus for consumer and producer is maximized. Information will be explored to understand why businesses and people make decisions and how those actions we can be used for strategy. To conclude this research paper, I will take a deeper look and make recommendations for the future profitability, future growth and sustainability of NIKE Inc. (Hubbard & Obrien, 2015).

Nike has totally changed the sports footwear and sportswear market. Nike's huge selection of merchandise consists of specialized workout equipment, footwear, clothing, accessories and sports components. Nike is among the world's biggest brands and a leader in the sportswear industry because of their advertising, innovative products and sponsorship of top teams and

NIKE, Inc. designs, develops, markets and sells footwear, apparel, and equipment, accessories and services. Its athletic footwear products are designed primarily for specific athletic use, although a large percentage of the products are worn for casual or leisure purposes. It focuses on NIKE Brand and Brand Jordan product offerings in seven key categories: running, basketball, football, men's training, women's training, NIKE sportswear, and action sports. It also markets product designed for kids, as well as for other athletic and recreational uses such as baseball, cricket, golf, lacrosse, outdoor activities, football, tennis, volleyball, walking, and wrestling.

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.

Nike uses vertical integration strategy which is a form of a relationship oriented approach in coming up with effective and efficient ways of managing its supply chain. This is achieved through forming alliances and relationships rather than using pricing strategy with an aim of purchasing stuff as cheap as possible (Frisch, 2008). The company has managed to maintain its relationship with contract manufacturers for its foot-ware by having different types of suppliers. The strategy is used in pricing its commodities where they have participants at different channel levels so that they could control costs and influence practices of pricing. For example, there are tier 1 suppliers and tier 2 suppliers where the former are firms with a stronger relationship with Nike who act as more of a strategic

Nike Corporation has identified possible competitors as any sneaker that shares our product market and targets this market with a very similar product or service. When this situation exists, it’s important to divide the market into segments so opportunities are maximized. Maximizing opportunities can ensure that a company has implemented a well-designed and well-suited marketing mix. This correct marketing mix ensures the competitive advantage is retained and increased. Profitability

Nike has a mission statement that lets everyone know what the main objective is. “To bring inspiration and innovation to ever *athlete in the world.” Founder Bill Bowerman defined athlete the following way: “*If you have a body, you are an athlete.”(Mission statement, Nike.com) That definition is the heart of Nike’s business model and has been the center point to their vision. They are saying that everyone in the world is athlete and they want to inspire and innovate every type of demographic. Nike’s view has been a critical to their spectacular growth to be a major global

Currently, Nike stand as a leading figure in producing high quality sports and fitness equipment and apparels. Bearing just a simple start of selling Japanese imported shoes from a station wagon has transformed

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.

That is, Nike’s targeted buyers are interested in the latest innovative products. This segment is willing to pay for the products and has also has continually demonstrated its willingness to keep buying the latest products.

Nike stands as the World’s leading producer of Athletic Footwear, Apparel and Equipment. As of 2013 they held complete ownership or joint venture in the following companies:

Nike’s main competitors, Adidas and Reebok, each produce a similar product mix to Nike’s, and in order to keep a competitive edge, these companies attempt to optimize its current products and showcase new innovative products. The Summer Olympics, the biggest sporting event series in the world held every four years, presents Nike and other sporting good companies with a huge opportunity to showcase new products and fuel the competition in their industry through sponsorships of teams and individual athletes. By the next Summer Olympics in 2016, sporting companies will have another chance to show off their brand, enhancing the competitive rivalry between each other. Another competitive issue that inhibits Nike’s product distribution is the large amount of substitutes in the sporting goods industry. Consumers have a wide selection of footwear, apparel, and sporting gear retailers to choose from, which requires sporting goods companies to enhance their marketing strategy to sell their products in order to survive in the industry. On the contrary, there are some economic factors that may benefit Nike’s marketing of product in the next few years. Since 2008 recession, real personal consumption expenditures have increased, indicating that consumers are willing to spend more of their money on certain items (Appendix B). This may be an opportunity for Nike to intensify marketing to consumers in order to increase sales at time where there is an increasing

Nike, Inc. has been the world’s leading innovator and provider in athletic footwear, apparel, equipment and accessories for 50 years. Their mission has been to bring inspiration and innovation to every athlete in the world; if you have a body, you are an athlete. Arguably one of the most innovative companies in the world, Nike has built its brand into an iconic world-class powerhouse that continues to dominate the market with no signs of slowing up. Nike’s marketing and advertising have been breakthrough, aspirational, and legendary over the years, featuring high-profile athletes and heroes.

Nike is a brand that usually signs top athletes of every sport from across the world to lucrative deals so that the athletes can wear and represent Nike to its fullest. Nike, unlike its competitors, wants to be seen more as a symbol of strength, dedication, hard work, sweat, perseverance and the desire to succeed. Superb athletes and role models have extreme power over teenagers and often influence them into purchasing products not otherwise thought of. Nike has been able to sign numerous top notch athletes while other companies just simply