Nike, corporate strategy management

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They have a lot of nationality who work for Nike. Because diversity promotes creativity and innovation so the competitive advantage. With this things Nike can understand their customers because inside the company they have a good share of difference opinion. So the cycle of the product is more longer.

With this two point the employees feel part of the group and want to continue working for the company. Making work more productive.

This is the added value of the brand

- Strategy

- Nike’s generic strategy and intensive strategy

When we to talk about nike strategy we need to precise what is the nike’s generic strategy and nike’s intensive strategy.

Generic strategy mean diversity of product. How the company maintain its competitiveness ?

Intensive strategy means innovations. How the company develops ?

Michael Porter is the first who talk about generic strategy. He describe a lot of stretgy but Nike use two of them. Cost Leadership Strategy and Differentiation Strategy

Nike's generic cost management strategy has allowed the company to minimize its costs to maximize profits by selling cheaper. This is how Nike has allowed to regain its competitiveness to adidas in 1990.

Furthermore the differentiation strategy allowed to provide unique products with special designs to Nike.

This combination has made it possible to reinforce the company's performance

Nike still wants to increase its market share. For this, the company develops new product. This intensive strategy allows nike to offer attrative products with new technologies that its in its shoes or in its clothes.

For example when the brand want to sell a new product she push on the advertising the innovation. And that makes sense because the company use already the differentiation strategy. This is different with their competitors.

Also when nike want to penetrate the market they create a new stores to sell more product. They use this strategy in USA but not everywhere.

Otherwise nike enters in new market like in Afriqua for example because this is a new customers for them. Also they enters in new segment market because new sport develops, those that represent a new target for the brand.

- Marketing strategy

Nike Inc. relies on its marketing mix to maximize its profits and growth. The marketing mix is the combination of strategies and tactics a company uses to execute its marketing plan, with reference to the variables Product, Place, Promotion and Price (4Ps). Nike’s marketing mix addresses the key concerns in the company’s target markets around the world. [pic 3]

Sports shoes are the most popular products from Nike. Nike now offers running shoes, tennis shoes, and shoes for a variety of other sports, including cricket.

A lot clothes like short, tee-shirt …

And now equipment and accessories like for the golf or for running

Nike would like to offer as much product as possible

Retailers are the most significant places where Nike products are sold. But now with the development of e-commerce and m-commerce nike will probably develop its site to attract more customers

Nike depends on the effective promotion of its products to maintain a strong brand image.

Advertising is the biggest contributor to Nike’s ability to attract customers. The company heavily relies on advertisements, especially those that involve celebrity endorsers, such as professional athletes and sports teams. The company’s direct marketing activity involves directly persuading colleges, local sports teams and other organizations. Moreover nike give some money for association to promote the Nike brand

Nike uses the value-based pricing strategy to ensure growth in its sales and profits. This element of the marketing mix identifies the prices the company applies to maximize profits while attracting the desired share of the market

- Vision statement and Mission statement

The mission statement has evolved year after year to stay in line with her trade policy. The mission is really important for the brand because this is a real guide for their strategy and business development.

Nike’s mission statement is appropriate for its business situation as a global producer and retailer of athletic shoes, apparel and equipment.

The mission statement was clear when Bill Bowerman, the founder of nike said « if you have a body, you are an athlete ». Nike want to give inspiration and innovation for all the athlete in the world.

The 3 biggest word for the mission brand is Inspiration, Innovation and all the athlete in the world.

- Inspiration because the brand is the first manufacturer of sport shoes, apparel and equipment. And they want to inspire the people because they became the first while they started with nothing. Also with the help of the slogan « just do it »

- Innovation because Nike is always looking to innovate to find the perfect shoes and the best sport product.

- all the athlete in the world because Nike want to target all of them. It’s why they create different shoes and equipent for satisfy a wide variety of the market segments globally.

We can say this 3 word is the strenght of the brand because they can use this all the time for any generation.

Because of the lack of information we don’t have a lot of things about the vision statement. Nike want to be secret for the future.

Nike’s vision statement needs development to address what the business represents and wants to strategically achieve in the future. The vision need to be adapt with their goals.

Nike has not published an official vision statement. But we can imagine the brand want to think a lot about corporate social responsability. They want to think more « green » for her image, for their customers and the planet earth.

The big word for the vision