Nike Inc. wasestablished in the 1960s. Today, Nike is one of the major players in the industryfor sport shoes, and clothing. Nike Inc.’s strategy highlights the variety oftheir product.
According to the generic strategies, the generic strategy defines howcan a company reach and preserves its competitiveness. To ensure its advantage,Nike Inc.’s genericstrategy is appropriate for its different product lines. The similar intensivestrategies grow Nike’s global shoes, sport gears, and clothing business.Nike’s intensive growth strategy can show the company’s focus on innovation to changethe business. In order for Nike to keep its position and advantage in theindustry, the company must make sure that its strategies are always well matchedto the present business environments.
The strategies that are used in Nike Inc.’s isthe cost leadership generic strategy and the differentiationgeneric strategy. For the cost leadership strategy, Nike reduces production costs to offera product at a lower selling price of their sport shoes and other sportproducts. Going against Adidas, this cost leadership strategy helped thecompany gain back its competitiveness. For differentiation generic strategy, NikeInc.
keeps creating inimitable products for their consumers. The company mixescutting edge designs for their shoes. Both of the cost leadership strategy and thedifferentiation strategies help Nike Inc. to improve its performance. The goal ofcost leadership strategy is to help the company to gain its competitiveness frompresent trends and lessen the costs. Moreover, the goals for differentiation strategyis to increase the company’s profit from shoes.
Eventhough the company is trying to make changes to improve themselves, there arestill some issues that can hurt them. The first issue would be the changes of the newlifestyle, such as the consumers are becoming more health and fitness conscious.That means Nike Inc.
have to reposition themselves in the industry. Another issueis that the products might go out of style. The company needs to follow the trendas close as possible. Also, Nike needs to focus more on appealing the womenconsumers, since their purchasing power is increasing, and they tend to spendmore for shopping and other emotional purposes than men.
In addition, they needto beware of other strong competitors that are selling similar sports clothingto target women.