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Ktemp Kuch Essay

1839 words - 8 pages

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Nike is a very competitive organization. Phil Knight (Founder and CEO)
is often quoted as saying that 'Business is war without bullets.' Nike has a
healthy dislike of is competitors. At the Atlanta Olympics, Reebok went
to the expense of sponsoring the games. Nike did not. However Nike
sponsored the top athletes and gained valuable coverage.
Nike has no factories. It does not tie up cash in buildings and
manufacturing workers. This makes a very lean organization. Nike is
strong at research and development, as is evidenced by its evolving and
innovative product range. They then manufacture wherever ...view middle of the document...

However, like it or not, consumers that wear Nike product
do not always buy it to participate in sport. Some would argue that in
youth culture especially, Nike is a fashion brand. This creates its own
opportunities, since product could become unfashionable before i t wears
out i.e. consumers need to replace shoes.
There is also the opportunity to develop products such as sport wear,
sunglasses and jewellery. Such high value items do tend to have
associated with them, high profits.
The business could also be developed internationally, building upon its
strong global brand recognition. There are many markets that have the
disposable income to spend on high value sports goods. For example,
emerging markets such as China and India have a new richer generation
of consumers. There are also global marketing events that can be utilised
to support the brand such as the World Cup (soccer) and The Olympics.
Nike is exposed to the international nature of trade. It buys and sells in
different currencies and so costs and ma rgins are not stable over long
periods of time. Such an exposure could mean that Nike may be
manufacturing and/or selling at a loss. This is an issue that faces all
global brands.
The market for sports shoes and garments is very competitive. The model
developed by Phil Knight in his Stamford Business School days (high
value branded product manufactured at a low cost) is now commonly
used and to an extent is no longer a basis for sustainable competitive
advantage. Competitors are developing alternative brand s to take away
Nike's market share.
As discussed above in weaknesses, the retail sector is becoming price
competitive. This ultimately means that consumers are shopping around
for a better deal. So if one store charges a price for a pair of sports shoes,
the consumer could go to the store along the street to compare prices for
the exactly the same item, and buy the cheaper of the two. Such consumer
price sensitivity is a potential external threat to Nike.

Nike Marketing Case Study
I. Definition of the Issue
The Nike case study has presented the company in different angles with all
aspects having different concerns. The main issues in this case that we would
focus on are concerning the future of Nike. We would want to analyze if Nike
has chosen the appropriate targets for new marketing efforts. We would also
discuss if the company can be successful in gaining market share amo ng
women. These issues are what we think are going to affect Nike¶s performance
in the coming years.
II. Objectives
Our paper¶s objective is to generate strategies that may aid Nike¶s development
in response to the issue through a quantitative analysis.
The paper also includes a potential problem analysis to help strengthen the
strategy¶s defenses and enables the company to predict and anticipate future
III.S.W.O.T. Analysis
Nike has several strengths that enabled them to be one...

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