The type of market my paper is concentrating on is known as a monopolistic competition market. The first characteristic that differentiate a monopolistic competition market from the other 3 markets is that in a monopolistic competition, there are many sellers which would lead to competition between the firms to sell their products. The second characteristic is that monopolistic firms are relatively small, which can result in either new firms to enter the industry or firms that are existing to exit the market. The third characteristic is that the firms in the monopolistic market sell products that are similar but are slightly different compared to other firms in the same market. The last characteristic is that the firms in a monopolistic market …show more content…
An advantage of how Nike uses this strategy is that it allows them to boost their profit by selling differentiated products and Nike have other products that will compensate for products that fails in the market. The difference between Nike and its competitors is that Nike produces their products for men, women, and children in different ways based on the basis needs, physiology, preference of design, and the trends in the market. However, the biggest threats to Nike’s market is the stiff competition with the other sports brands that sell similar products, which causes Nike to continuously come out with new products with new technologies and better …show more content…
The first method that they utilized was that they switched from a vertically integrated brand structure to a functional multi-rand structure. The functional multi-rand structure helped Adidas by creating a global sales function that is responsible for commercial activities and marketing for both brands. With a global sales function, it allows Adidas to split Reebok and Adidas into wholesome and retail department, which allows them to cater to the various necessities of both brands. The second method that they utilized was by focusing their investments in the best possible markets and channels in foreign countries by critically evaluating buying behaviors of their consumers in order to secure shelf space for their goods. The third method that they used is that they embraced e-commerce, which allows them to appeal to their customers more efficiently and make purchasing products for consumers more
Also, they have successful in every sports around the world without focusing the age range which means that adolescence, children, youngsters, adults all are available to wear the Nike shoes. The main focus of Nike is on new product development it keeps updating shoe models in every six months, in order to maintain a high speed to the market. Nike has also pioneered four shoe-cushioning systems that reduce shock, distribute pressure, protect from impact and offer comfort. Nike until now still improving the technology through phones and sportwatch, it has introduced a running app to be used in the latest iPhones.
Not only that, Nike is also dedicated to engage its workers to healthcare, education, and finance networks to ensure that it creates a positive change to its workers not only when they work, but also outside their workplace (Nike, Inc., 2017). With these changes, Nike may now be able to live up to its mission, and that is “to bring inspiration and innovation to every athlete in the world” (Nike, Inc.,
Nike has sustained positive revenue in a worldwide market focusing on a healthy and active lifestyle. For the past 3 years Nike has gained a gross profit ratio of 8.73% in fiscal of 2013, 10.28% in fiscal of 2012, and 8.28% in 2011 . Thus showing the financial power Nike has, well the firm holds a net income of 2.5 billion in the fiscal year of 2013. Nike’s largest product category is footwear, representing over 55% of the companies revenue. Nike uses their financial resources ability to obtain large advertising plots, whether it is a commercial on television, advertisements on the Internet, or product promotion in athletic facilities.
Phil Knight, founder of Nike and creator of Sports Marketing in 1957, Phil Knight and Bill Bowerman met at the University of Oregon; the first, runner athlete and later graduate student in business administration at Stanford University, California, and the second, recognized athletic trainer who continually experimented with new designs for athletic shoes. Knight was always a man with a vision of the future; in his postgraduate thesis at Stanford University he indicated that the success was in designing a high quality product in the United States, manufacturing it in Asia, and selling it in the United States at prices lower than the then popular East German sneakers that were commercialized in that period. In 1962, Knight contacted the Japanese
The fourth expansion strategy of Nike Inc. was product diversification. While it is essential to emphasize that the outsourcing strategy was enormously effective, it is also important to know that Nike Inc. did not rely on footwear production and importation alone, rather the company diversified into producing and selling apparel. According to the company’s financial report, revenue from the sales of apparel was estimated at 29% while footwear was 59% respectively (Locke, 2002). This diversification, no doubt, combines with outsourcing its factories to lower-cost countries and selling its products at an affordable price was the catalyst to Nike Inc. expansion strategy. Explain what the positive and negative impacts of this strategy were.
When a person hears or sees the word America, what do they think? America is a country that almost everyone in the world knows about because there are certain words and phrases that can be used to describe it. Some common terms are sports, equality, the melting pot, powerful, freedom, hard working, and some more. All of these words make up what is known as the American Identity. This American Identity has been built up over time by people’s actions and thoughts.
NIKE The Factors that Led to Success and Failure of Nike in its Venture across International Markets Abishek TR* Abstract- Key words: INTRODUCTION The largest American suppliers of athletic shoes, apparel, and sports equipments .At the same point of time ,this company is known worldwide .The Success of this company is the result of the various strategies used in the international market expansion which helped them to enter into new markets and to strengthen its position in the traditional ones .
The Mini Case manifests that Nike’s core competency is to create heroes. Nike spends over $1 billion per year sponsoring athletes, and transfer its brand image via celebrity effect. Nike sponsoring athletes who with huge potential, or even from disadvantaged backgrounds (Rothaemel, 2015). Those people’s success stand for “impossible to possible”, Nike impressing its customers that everyone can become a hero by these inspiring stories. From 1976 to 1983, Nike focused on product innovation, and launched the Air shoe which significantly contributed to a reversal in declining sales.
The strength of high price product strategy is that Nike can earn more on each single item. Also, it can ensure the quality of the products. The low-priced products policy could widen the customer group and attract more buyers to boost the sales. The weakness of selling premium is that only high-end buyers could afford to buy it.
Many companies and brands face this similar problem of counterfeit products being available to the public. Having this problem grow gradually, the profits of Nike drops greatly as many consumers would now look for “cheaper Nike” products. For example, consumers are able to get $60 for a counterfeit Nike whereas the authentic pair would have cost them about $120. It has been said that the growth of Nike was expected to grow from 4.5% in 2009 to 6.5% in 2012 (“Why Nike Will Outspace Sports Apparel Market Growth”, 2013). However, due to continuous support from the consumers in counterfeit products, this hinders the growth of Nike by a huge percentage.
Nike Starvation, Abuse & The Effects of Them! Nike, known for its shoes and its swoosh, has now lined up with another sports legend for $305 million. The company Nike had currently bought the company Converse, a century-old footwear company and maker of the celebrated Chuck Taylor All Star shoe, but it is also well known that those companies (Nike specifically) abuses and pay their employees with very low amounts of money. In that specific company it has been said that most “Nike workers have currently been 'kicked, slapped and verbally abused at their factories making Converse and Nike apparel” (Nike faces new worker abuse claims in Indonesia.
Maximizing strategic flexibility insists that they outsource the manufacturing processes and hide an innovative corporate culture under its umbrella. By keeping their real options open, Nike can also be ready in the event where new potential competitive advantages appear such as
Micro and Macro Environmental factors that influence Marketing decisions (LO 2.1) Micro Environment: This indicates those elements over which the marketing firm has control or which it can use in order to gain information that will better help it in its marketing operations. Furthermore, these are the factors close to a business that have a direct impact on its business operations and success. It is important to carry out a full analysis of micro environmental factors prior to decide corporate strategy.
Probable factors that could affect Nike’s business judgements are a range of demographic, social, economic and political. A few have already started to transpire, though others are purely likelihoods. External factors affecting this mix is one of the most common, technology. Before Nike releases its brand new product line to the market, it’s always prepared to authorize that whether or not there has been any sort of major advances from the other competitors that would tracker its launch. Thus they must time this carefully, as other competition may demand to shadow its release with their marketing
Carmen Wylie Gr 11 Life Orientation- Task A Goals and Mission Statements Question 1: Source A and B are considered to be examples of personal mission statements. Would you agree? Explain your answer.