Lastly for their marketing “P’s”, Promotion and advertising is a huge effort from Nike. However, its campaigns, public relations and sales offers are all built on brand image, loyal return consumers, awareness of public issues are all plugged into their strategy. By creating a personable and emotional ad, consumers feel the reality of the topic and the product becomes memorable. Inserting into various movies, celebrity athlete ads and sponsoring events all are part as well. Nike designs these strategically to make a connection to the consumer. This has proven over that last three decades to be a smart and effective sales tool.The S.W.O.T. Analysis in Nike’s business strategy concludes that the company steadily and consistently exceeds profits because of its innovative sports shoes and great supplier/distributor relationships. Their main strengths being the sustained brand name and image, celebrity endorsements resulting in consistent profits, and outsourcing internationally creates a healthy diversity within the product lines. Weakness of Nike could be their higher end prices, could be considered too expensive for an average mid-level income household, and around 2017, allegations were published against Nike for housing “sweatshops” and this threatened a decline in sales and loyalty of consumer. With new opportunities to expand into sporting goods and general sales, the bare feet campaign, expand a lower priced shoe, and strategize a newly purchased brand and logo for Bauer and Hockey and also the innovation of shoes that tie themselves, the allegation caused losses could be covered and made up with the opportunities arising. Lastly, a major threat to consider while Nike is consistently profiting, is therising oil prices, causing consumer to pinch pennies and also the competition mergers of brands
such as Saloman, Adidas and Reebok for example. Market expanding and lower price ranges could help maintain their lead position. Nike has developed multiple types and varieties of sports shoes for athlete over the years.The first public success was around the 1980s. Nike went public with 2 million shares of common stock. Their mission statement remains “To maximize profits to shareholders through products and services that enrich peoples’ lives”. This remains even today, as they provide quality, innovative opportunities and services, internally and externally, a supportive work environment to ensure the maximum efforts of employees, and establish/identify great opportunities in the markets. The company minimizes production costs to maximize profits. This is a common goal formost organizations. Their objective is to make money for their shareholders as their ‘for-profit’ industry goals. Cost Leadership, Differentiation and Focus are all three main topics and factors in the generic strategy used by Nike for proven success as well. The cost leadership for Nike and generic strategy has proven to be their competitive edge and advantage for costs. Differentiationbrings a greater broad cross section of buyers to the storefronts and online shopping.
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- Spring '19
- Dr. Paul Babinski
- Athletic shoe, Nike, Inc.