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Nike Inc. was
established in the 1960s. Today, it turns out to be one of the important players
in the market for shoes, and clothing. Nike Inc.’s generic strategy highlights the
variety of their product. According to Porter’s Generic Strategies, the generic
strategy defines how can a business/company reach and preserves its
competitiveness. To
ensure its advantage, Nike Inc.’s generic
strategy fit for its varied product lines. The similar intensive strategies
grow Nike’s global shoes, sport gears, and clothing business. Nike’s
intensive growth strategy can show the company’s focus on innovation to change
the business. In order for Nike to keep its position and advantage in the
industry, the company must make sure that its strategies are always well matched
to the present business environments. The strategies that are applied in Nike’s strategy
are the cost leadership generic strategy and as well as
the differentiation generic strategy. For the cost leadership generic strategy, Nike
reduces production costs to offer a product at a lower selling price of their
sport shoes and other sport products. Going against Adidas, this cost
leadership strategy helped the company gain back its competitiveness. For
differentiation generic strategy, Nike Inc. keeps creating inimitable products
for their consumers. The company mixes cutting edge designs for their shoes. Both
the cost leadership strategy and the differentiation strategies help Nike Inc.
to improve its performance. The goal of cost leadership strategy is to help the
company to gain its competitiveness from present trends and lessen the costs. Moreover,
the goals for differentiation strategy is to increase the company’s profit from
shoes. Even though the company is trying to make
changes to improve themselves, there are still some issues that can hurt them. The
first issue would be the changes of the new lifestyle, such as the consumers are
becoming more health and fitness conscious. That means Nike Inc. have to reposition
themselves in the industry. Another issue is that the products might go out of
style. The company needs to follow the trend as close as possible. Also, Nike
needs to focus more on appealing the women consumers, since their purchasing
power is increasing, and they tend to spend more for shopping and other
emotional purposes than men. In addition, they need to beware of other strong
competitors that are selling similar sports clothing to target women.

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