Nike vs. Reebok

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Nike vs. Reebok Questions 1. "The success of Nike was strictly fortuitous and had little to do with great decision making." Evaluate this statement. The important part of the success was due to the far-sight of Nike's management team. Nike's CEO, who was a marathoner and knew what runners wanted for their shoes, had made a very basic strategy work; "make the products that fit their consumers' needs". Examples of great decision making are: • Diversifying products (into sports wears and others) was a smart move that had contributed to the current and growing success of Nike. • Nike's management's bet on celebrities marketing. These athlete celebrities including Michael Jordan and Tiger Woods had introduced and placed Nike and its…show more content…
The good decision making would need to start with • Acquiring all relevant information and then thoroughly analyzing the information. • Prepare a well-planned course of actions and backup contingencies in case of unexpected. • Vigorously monitoring the situation and response in timely fashion. • Learning from past mistakes of ourself and others. 6. Do you think the athletic goods industry has limited potential? Or is it still a growth industry? Your opinions, and rationale, please. Athletic goods industry still has unlimited potential and it is a growing industry at the moment. The sportswear is not limited to track and field anymore. It has become a daily-life goods that can be seen everywhere. Product diversification into fashion business opens up a new growth potential for athletic goods. Also sport has been emphasized a lot lately as recreational activities to promote healthy life. Product segmentation could also create new market segments within the existing ones. For example, running shoes designed especially for rough surfaces or mountain terrains, or with reinforced ankle protection, or with some added features such as anti-bacterial insole. The growth potential is clearly evidence by the directions of Nike's recent moves. Nike's product diversification creates a larger market. Nike also acquires i. Cole Haan (Dressing, formal shoes markers) ii. Bauer Hockey (Ice Hockey and Extreme sport type of goods)
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