How does Internet Influence Value Proposition Nike Inc - Research Paper Example

?List of contents: Keywords: Specialty: History: Target Group definition: Brand personality: Multi sided market: Value proposition: Online Store Option: Strategies: Unique Value Proposition: How does internet influence value proposition: Creating Values: Brand Analysis: Monetary exchange: Internet based Customer Portfolio Building: A free Value Strategy: Salient Steps: 4P: Non Monetary value exchange: Ensuring customers loyalty: The efficiency strategy: Porter Five Series: Research and Development: Conclusion: Abstract: A holistic strategy towards success includes target segment determination, its value proposition, brand name establishment through effective advertisements, exploring new markets, and creating value for goods and services. All these are the core functions incorporated in Nike Inc. and the recent mergers and the subsequent actions taken in this regard. Specialty: Nike Inc is not just limited to a single foot wear item, rather it ensures its presence in multiple ways, such as sports equipment, apparels and various other inter related items. It is not just restricted to sportswear, instead it allows for large array of items related to other leisure. Eye wear, electronic timers, wrist bands and sweat bands as well as children shoes that are not primarily related to sports but for casual wear. Keywords: Sportswear, e-commerce, online, unique value proposition, marketing perspective, quality, customers’ considerations. History A predominant name in the field of footwear and numerous other interrelated services. It has been in practice and action since the mid 20th century and is amongst the top runners in the respective industry (Marco et.al , 262). The company has incorporated various techniques, business principles, policies which have enabled achieving its present day position and standing. All these have been implemented in respective disciplines pertinent to the overall best services and performances. Target group: Target group is defined as one that is the core focus on the company with regard to fulfilling their requirements and providing them with all sorts of items needed by them. Target group is also represented in the ads and commercials that are broadcasted. An active participant of nearly all major sporting activities, such as football, tennis, athletics and numerous other games, however it is not confined to sports only. The company has expanded its wings in a scattered way and can be easily termed as a multisided market industry with focus on various segments. Operating internationally and having its outlets and chains in nearly all the major regions of the world, it holds attraction due to its variety and quality in the given domain. Strategies: Nike Inc has expanded its network through its franchises and independent retailers who are officially granted the licenses in this regard to sell their products under the official banner. Both the franchises and independent outlets work through the approval of officially granted work permits by the head office and its concerned offices. Multisided market: Providing for sportswear as well as casual wear speaks of the company’s multisided approach. Also not limiting its items to teenagers or sports athletes is another example of multisided market approach. The offer of subsidiaries is another example of its multisided market orientation. Various subsidiaries are operational in the name of Converse Cole, Hockey Hurley International to name a few. How to reach the blue moon: Brand personality: The brand enjoys a credible name amongst the customers, it has stood for quality and reliability. Its expansion based policy and much more richer supply chain relationships define the brand itself. Differentiation: Differentiation is based upon quality, reliability, customers solution and future prospects consideration. Unique Value Proposition: In order to keep up with the changes of modern times, and the subsequent demands, any given company has to adopt and make certain items its bench mark and elements of separation which may provide them an edge over the rest. Nike Inc. has established various distinguishing features in this regard, two or three of them are customers loyalty, quality of items and price consideration. Their price factor enables them keeping up a large bench of customers ranging from the mid range wear to the high end which are being worn by the international players and athletes. Trust Building: Dimension of customer risks Signalling the safety/thrustworthiness by the company within the dimension of customer risk Quality constraint Loss of quality is a direct customer loss threat Novelty Novelty keeps the customers intact for longer Parts per defect Poor quality is a direct rejection and run away Delivery duration Customers can not afford delays Creating Values: Monetary exchange: Attracting customers: in order to attract customers, Nike Inc ensures fulfilling multiple factors, one is that of establishing long chain of relationship that is based on trust, good quality of products and items, and most importantly good customer services. It is being often said that a satisfied customer brings along three to five customers with himself and a dissatisfied customer takes along five to seven customers with himself. Keeping this in view, the incumbent company ensures customers satisfaction through various means. This is accomplished through innovation, new products launch, discounts on items, good sales promotion, relative discounts in off seasons, and various other offers that would serve as attracting point towards the customers. The company also keeps a check on the rival companies and makes sure their performances, their services and their products are a step ahead with regard to the quality, pricing, services and all other aspects that a customer would look for (Carbasho, 43). Internet based Customer Portfolio Building: A free Value Strategy: Websites provides a means of free value strategy where the customers do not need to spend and invest unless they chose and like a product and item. Value proposition: How does internet influence value proposition: Internet has become an integral part of promotion and sales. Effective online schemes and providing the customers with various options makes up for better value proposition. Choosing a shoe color, size, design is an example of value proposition created by Nike Inc. Online store option: Nike Inc has ensured keeping up with the pace of time and thereby has adjusted itself to the developments in technology. This can be exhibited from its online sales and online store. A properly organized and official website in the name of www.Nike.com operates, which allows the customers from all parts of the world to look for the new offers, new packages and the related prices and their availability in the region. Salient steps: Defining the objectives Creating practical products Mutual trust development level Delivery stages 4Ps: The marketing policy of Nike is based with due regard of 4 Ps of marketing. Each ensures the customers satisfaction and good services providing as well as better performances all round. Keeping a large variety of products and items is the fulfillment of the Product P of the marketing. Nike 6.0, the cricketing shoes, Air Jordan (Davis,2) XX3, SB series are few of the products that speak of the variety of items being provided by Nike. Price: The pricing factor is equally weighed out and compared to the other competitors in the market, it provides for good quality of shoes in the prize range against it. its prize ranges are affordable to the all kinds of sports persons. A large variety is being maintained in this regard providing the best sporting equipment and wear to the professional athletes and also the medium scale and economy scale items to those who may use them for domestic purposes. Place: The presence of its outlets in major cities across the globe is an evidence of its effective policy towards the place factor. Promotion: The Final P in this regard is that of Promotion. Promotion is highly important for the success of any industry, any business enterprise and its respective products. Nike Inc ensures proper promotion and coverage in this regard. It makes use of all the platforms available to promote its products, its names in itself and the services as a whole. Endorsing lead sports personalities and providing sufficient promotion to their items and products is one of the policy maintained in the promotional domain. One Prime example in this regard is that of Tennis as a sport and its celebrities who are official representatives of Nike Inc. Non Monetary value exchange: Ensuring customers loyalty: Customers’ loyalty is a leverage that is being kept by all companies. Nike Inc also ensures customers loyalty and makes sure the long chain of partnership is not broken; thereby they entertain all kinds of queries concerns and regards about the clients’ problems in any way possible. This in other terms also means higher quality of products and timely delivery. The efficiency strategy: Porter Five series and its implications: Nike Inc has an established team and working members designed to look into the marketing aspect. Since the success and or the failure of the company is largely subject to the marketing factors consideration, for this purpose the porter five forces are timely adjusted and studied and every product and item that is being launched is being tested for against the five variables in form of the porter fiver series and variables. Mitigating the barrier of new entrants and ensuring that the competitive advantage is not being lost, the company in this regard ensures and has established four subsidiaries to make up for the potential threats that may arise in form of any other company or force that may introduce a new product and may potentially harm the Nike name and brand. Bargaining power is also taken into account, and considering the power and capability possessed by the market, it ensures keeping the bargaining power updated and to the maximum and investing in time and a little over the competitors. Change adjustment: Keeping up with the changes of time, and the demands of the clients is a high value point and must be taken into account. Nike Inc. ensures sufficient homework and preparation in this regard and adapts to the new trends. Keeping up with the new generations demands, providing them with more flexible and ease to use and wear equipment is amongst the priorities of the company. SWOT Analysis: Nike Inc. gives a good case of SWOT analysis; it has its strengths, weaknesses and the challenges and threats faced by it. Overcoming these threats would allow for becoming its advantages and strengths in this regard. For example the first case of strength that is being enjoyed by Nike Inc, is its long recognition and name that has been earned by it across the world. it is amongst the world’s main stream providers in the given domain and based on its quality and durability of items and products, it makes up for a very successful brand name. Adapting to the modern day challenges and embracing technology and developing innovation amongst its ranks are few of the points that adds to the advantages and strength bench of Nike Inc. The weaknesses suffered and presented by Nike Inc. are in the domain of competition from across the globe, this competition comes in form of the rivals, the new entrants to the market and the challenge of further consolidating on the already established brand name and the subsequent quality that is being demanded from the clients who associate a good name and quality to their name. Design your Own Shoe: Keeping up with the modern day demands and the online options that are being provided by large number of companies, Nike Inc. made sure it does not stay behind and hence it also launched a full scale website that has been operative for a long while. The value of co creation: One similar unique move in this regard has been that of “design your own shoe”, it allows the customers to design a shoe according to their wishes, design consideration, size, contrast in colors, laces, without lace, angle consideration for athletes and many more items and options which would otherwise not be available. This option and function is available on their website. Total customer solution: Customers’ solution to their problems is resolved in form of the research and development team. Nike Inc. has established a strong RnD team that looks into the future prospect of the industry. Based on the responses collected from the customers through different means, the given company incorporates research and development techniques as well as the clients’ complaints responses against which the new products and items are developed. The company receives regular feedback from the clients through different means and for this purpose the given company also makes sure that clients problems are resolved at earliest and the new models so launched are free of defect and are more durable, economical and suited to the clients needs. Distribution factor: Ensuring good supply chain relationship and timely delivery to the clients and as well as the supply chain partners is the key to overall success. Communicating Values: Nike Inc. has ensured good distribution means by incorporating fast means of communication, delivery and much more. Staying a step ahead of rivals, providing the clients with sufficient time to order their items, and then delivering them in due time is one of the factors that has to be taken into account with regard to successful and efficient distributional considerations. Strategic positioning factor: Ensuring the establishment of its branches at places that are more suited to the clients, transportation, investors and numerous other related factors are taken into account every time a new outlet and franchise is being opened by Nike Inc. Although on the online store, this factor is relatively chalked out and reduced to some degree yet in the physical interface medium, this factor is still highly important and of high value thereby Nike Inc, ensures proper positioning. Research and Managerial factor: Before installing a plant and establishing an outlet, the given company performs surveys and researches with regard to the durability and response of customers and the possible challenges and advantages that may be served by the given company’s new outlet. Conclusion: The place and position Nike Inc. enjoys today is all because of its long lasting performance based existence, customers considerations and quality at the top of priority list. However it is faced with challenges and it must adopt the new means in this regard to ensure better and more secure future standings. References: Carbasho, Tracy. Tracy Carbasho. ABC-CLIO, 2010. Davis, Scott M. The Shift: The Transformation of Today's Marketers into Tomorrow's Growth Leaders. John Wiley & Sons, 2009. Marco, Marco De, et al. Information Systems: Crossroads for Organization, Management, Accounting and Engineering: ItAIS: The Italian Association for Information Systems. Springer, 2010. Read More