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Nike - Case Study Example

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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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Nike Case Study
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Download file to see previous pages 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 ...Download file to see next pagesRead More
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