Nike Value Proposition

High Prices
Nike is also famous for selling expensive sport shoes. Its sports apparel is among the most expensive on the global market. Thus, for example, in Italy a person who would like to start the gym, could be intimidated by the prices that Nike offers. He or she could rather goes buying shoes and other sportswear in less expensive sporting goods stores, such as Decathlon, which sells products at different prices in order to better satisfy its customers. However, Nike manages to overcome its weaknesses thanks to its strong brand reputation.

Bad Past Reputation
During the 1990s, Nike exploited children of the third world. During that period, Nike gained the name of “Sweatshops” by taking advantages of child labor in factories in Cambodia

(https://help-en-us.nike.com/app/answer/a).

The value proposition is the perception that the customers and the market have about the company. What are the experiences that a specific chosen target of customers has received? What do customers think about the brand? How does the brand intend to position itself in the market? The customer perceives Nike’s products as “technically superior products, made of the best materials and with the latest technologies available, positioned as the most fashionable in the industry and endorsed by top athletes and sport

Nobody else can boast the wide sport partnerships that has Nike. Moreover, starting from this year, Nike started to sponsor almost all the NBA teams, overcoming Adidas’ role. Furthermore, it sponsors more than 40 European teams, among which it is possible to find four Italian teams, such Atlanta, Roma, inter, and Hellas Verona. There are several reasons why Nike keeps using the strategy of partnership. First, Nike's awareness by capitalizing the athletes' positive public images. Nike would be wise to pay Cristiano Ronaldo more endorsement money in order to maintain an advantage against other competitive brands. Second, athletes are the best means through which it is possible to promote specific sports product since it gives the customers a better sensation of quality and innovation. Also, customers have the impression that, using Nike Air or the CR7 (Cristiano Ronaldo collection), they are professional and their performances, when they practice a sport, improve notably because of the shoes. A third and final reason is that partnerships increase brand equity. Brand equity means the value that a famous company earns from its product, it increases when you associate to a company famous sports celebrity’s names. For example, in 2012 Nike paid to LeBron James $15 million to use its image and name for its product and