Moreover NIKE has put different branding efforts with the recent one including

Moreover nike has put different branding efforts with

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Moreover, NIKE has put different branding efforts with the recent one including the use of digital technology to have a direct engagement with its younger customers and receiving their direct feedback concerning its products. Most importantly, NIKE Inc. use both differentiation Strategy cost Leadership Strategy. The later strategy has helped the company to greatly minimize on its production costs while maximizing its profitability. The strategic objective of cost leadership strategy has given NIKE a more competitive strength through reduction of the production costs. The financial objective of the differentiation generic strategy has been to increase the company’s profit margins (Sheehan, Thurbon & Williamson, 2016). The different strategies used by NIKE has ensured that the company stays ahead of its competitors. Finally, a combination of cost leadership and differentiation strategies has significantly boosted the company’s performance in the global athletic footwear industry (Nike’s official website). Product development has remained NIKE’s primary intensive growth strategy. The company has invested a lot in introducing new products in the market. These products have remained attractive in the market which has given the company a strong competitive advantage (Nike’s official website). Market penetration is NIKE’s second intensive growth strategy which has enabled it to increase its sales revenues by penetrating its existing markets. In addition, market development has also facilitated growth of the company as it targets new markets and markets.
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Sneaker Wars For instance, Nike has managed to enter new markets in Africa and Middle East and this has greatly increased its sales revenue and profitability (Plunkett, 2016). Finally, Nike has diversified its business activities. The key objective of this strategy is to improve the company’s financial risk thus giving it a competitive advantage in the market. NIKE has significantly improved on its corporate social responsibility. The company has continued to demonstrate transparency especially when it published a complete list of its contract factories, the pay scale of its workers and admitting the challenges it has gone through. Also, NIKE has continued to address the climate change effect from its companies and has invested a lot of resources in reducing environmental impacts of its activities (In Vrontis et al., 2016). The company also reached out to its stakeholders, other businesses, NGOs and universities to help it improve on its sustainability. It has also invested a lot of resources on innovations (Sheehan et al
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  • Winter '15
  • Athletic shoe, Nike, Inc., Reebok

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