For Nike as a whole the company has managed to forge a level of consumer acceptance and brand equity that's enviable to most of their competitors. The company faces stiff competition in the international market with the merger of Adidas and Reebok. By learning from past mistakes the company has overhauled itself to better compete and adapt to changes in the marketplace and operational risks…
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Maintaining a level of high innovation, operational efficiency, and driving the creative and wild spirit of the brand culture will continue to be the differentiating factor between Nike and their closest competitors in the marketplace. The major competitors for Nike are: Adidas/Reebok- Both are very established brands domestically and especially internationally with a loyal customer base. For Adidas their key demographics are especially the 35 and older crowd. Their grass roots presence and their history of amateur sports sponsorship especially in soccer has allowed the company to maintain its position as the number two performance apparel and footwear company of Europe. Reebok with their strong market presence, strong endorsement, and fashion focus has captured a significant portion of the market share. 1) Nike has grown from its humble beginnings back in 1962 when Phil Knight started Blue Ribbon Sports the precursor to Nike to become the world’s largest athletic footwear and apparel company. Nike as a brand became known for its edginess, innovation and cutting edge technology. The brand's focus on performance and true innovation has built a high level of consumer acceptance and brand equity from serious athletes and amateurs and as a direct consequence the general public alike. Through savvy marketing campaigns, key sponsorships of professional athletes, sport leagues, teams, and its tradition for continuous technological and operational improvements the company has maintained its leadership position in the industry both domestically and internationally. By shifting its focus towards the consumer and not just the product Nike succeeded in capturing and maintaining the largest market share in the industry. 2) Despite incredible success in the domestic market by the 1980's Nike passed Adidas as the number one domestic athletic shoe company. Nike faced a lot of difficulty getting a foothold in the European market with formidable competitors like Adidas and Puma controlling over 75% of the athletic shoe and apparel market. By adapting its marketing campaign to suit its target audience and through savvy marketing and grassroots efforts Nike has developed its brand equity to become the market leader in the world. By becoming the world's largest athletic shoe and apparel company in the world Nike has had to face a lot of criticism for their unfair labor practices in their Asian manufacturing facilities. 3) Sponsorship deals with athletes like Michael Jordan and Tiger Woods were crucial to development of Nike's brand image as a whole. One of the key elements that helped Nike develop its brand equity domestically and internationally was through a marketing strategy where individual markets saw ads that featured local heroes and athletes and through direct financial support of local sport leagues and teams in the markets they served. Becoming an official sponsor for world renowned international sport events such as the Olympics places the brand in a unique position to increase the brand's goodwill, consumer confidence, and increases loyalty to the brand as a whole. 4) By becoming the number one athletic footwear and apparel company Nike is open to a diversity of operational factors and exposure that need to be constantly monitored. Nike's corporate image was negatively affected when allegations of unsafe work
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(“Nike Case Study Example | Topics and Well Written Essays - 1000 words”, n.d.)
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(Nike Case Study Example | Topics and Well Written Essays - 1000 Words)
“Nike Case Study Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/geography/1415911-nike-case-study.
Along with its subsidiaries, Nike Inc. is engaged in the business of textiles, apparels, footwear and other accessories. It is recognized as a global leader in designing, developing, sales and marketing of athletic footwear and other accessories. It sponsors many well known sports person engaged in different sports all over the world which is a marketing strategy adopted to promote their brand (Nike, Inc., “About Nike, Inc.”).
Nike was also the first company that started using offshore factories and contractors in third world countries. The company was involved in various offshore labor scandals in the past. Nike’s labor practices around the world have attracted attention of various labor and human rights NGOs, as well as the general public.
386). As of 2009, Nike is composed of 600 contracted factories, and has presence in more than 180 countries around the world (Nike Inc., 2009, p.8). As of May 31, 2009, Nike has more than 800, 000 employees in its factories located in 46 countries. Add to this figure the company’s suppliers, shippers, retailers and distributors, the figure rises to more 1 million people.
It operates most of its units around the world as a franchise where it focuses on the sales is and designing of athlete’s shoes, apparels and other sports materials. Nike has one major common slogan that is quite visible among the sportsmen and women as it acts as a motivating phrase by shouting loudly, ‘just do it’ to the sportspeople.
This is because what these factories are trading comprises Nike’s products besides being the main entity benefiting immensely from this mode of distribution channels. In addition, products manufactured as well as distributed by these companies subcontracted to Nike also are products of the mainstream.
tarted off in Oregon, Beaverton which serves as its headquarter, it has grown into one of the world’s leading multinationals, with a chapter of it being in the UK. Again, apart from the company’s robust personnel base, Nike Inc. in 2012 was valued at 10.7 billion US
If Nike were to adopt a more aggressive strategy than it is possible that the company’s reputation, embodied in this brand identity would be compromised. Additionally, Nike’s current business model has proven
This has improved its long-term image in the market although the increased pricing may have lowered its sales volume a little bit. The strategy to innovatively improve the quality of the products from the previous is a move that has since brought the company into the
4 Pages(1000 words)Case Study
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