Strategies of Nike

Strategies of Nike

1.

Analysis of business-level strategies

In order to differentiate its brand and to increase the loyalty of customer for the organization, Nike has adopted the strategy of differentiation for it business level strategy. It has high quality products to offer at acceptable prices for its customers. Nike has a perception of fancy sports items for its consumers.

Nike has segmented its products in various ways. It produces sports accessories and equipment for 3 different Demographics: for women, men and children. Every segment is examined and analyzed very carefully in terms of sociological needs, physical capabilities and design preference. Nike produces those products which are perceived as valuable for customers and they increase the satisfaction of customers. The products that Nike offers are Accessories, apparel like gym bags, track suits and equipment like sport balls, eyewear, bats, timepiece, stop watches and gloves etc. Nike manufactures goods for every kind of sports like basketball, golf, tennis, running, baseball, bicycling, wrestling, hiking, football, cheerleading, fencing etc. Such wide range of variety of goods produced by Nike is a try by Nike to increase the dimension of Affiliation. Nike continuously looks for adding more to its product range in order to increase customer satisfaction by creating value for the customers and that increase the strength in the relation created between the client and the company.

Major benefit of producing a great number of products is to decrease the risk. In a multiproduct portfolio like this reduces the risk that if one product fails to succeed then there is other products which can compensate the risk. Along with the such variety of goods offered by Nike, it also offers the opportunity to its customers to customized the goods according to their own choices.

Nike mostly design footwear and that's what it is famous for. The footwear is specialized for athletic use, just to diversify the product range, a huge % of the sales comes from its footwear, accessories and apparel for leisure and casual purposes. By using cost-leader strategy, it targets those customers who are not able to afford high prices, so it has some products which they can afford easily. And for normal Nike products, consumers are willing to pay higher prices because they perceive those benefits which are associated with acquiring Nike products.

Apart from the segmentations which are given above, Nike also got agreements for its licensees to manufacture and sell the branded products of Nike apart from the athletic apparel and accessories. The product differentiation comes through the planning of strategic management through selling Nike brands. Through such strategy, Nike increases the access of it company to its customers and that is the reach dimension.

The business level strategy of differentiation is used as a long term strategy, because the market is dynamic and people look for different things. There should be something different offered by other brands and therefore Nike uses this strategy, which is a long term strategy.

2.

Analysis of Corporate level Strategy

Along with its business level strategies, it should be noticeable that ...