Nikes competitive strategy seems to maintain competitive due to their low cost structure. They have an extremely low cost to create ratio compared to how much they are actually selling all of their products for. Additionally, they sell their products to such a large target audience. You see their clothes in Walmart but you also see them collaborating with Gucci. They operate in an industry that they created themselves. They want to empower athletes and have created this idea that anyone who steps into Nike gear is an athlete. In terms of compensation the spectrum is all over the place. I know many people that work in Nike retail, have good benefits, get paid a reasonable amount, but they complain about the high demand of work needing to be done. I also know more experienced Nike workers that have more flexible schedules, very high demand, but they are getting compensated without a doubt very well. I think their competitive strategy of low cost almost contradicts what to me they stand for. They are very outspoken about justice, equality, and giving back. However, they were recently exposed for exploiting workers from under developed countries. Nike serves at the forefront of all things athletic wear. With this comes pros and cons. You have a larger product market that you can discover because basically what they say is considered fashionable. But with this comes two things, the first thing is they have to find the balance of keeping products both within peoples budget while also making people believe it is very high quality. Finally, since they were exposed for exploiting their employees the cost to make their products rose due to the labor market which caused prices of product to increase as well.
FAQs
What competitive strategy does Nike use? ›
How does Nike use product innovation as a competitive strategy? Nike invests heavily in research and development to create innovative products, blending cutting-edge technology with unique designs. This approach enables them to offer superior and differentiated products that cater to customer needs and preferences.
What are the key marketing strategies employed by Nike to gain a competitive advantage? ›The key elements of Nike's marketing strategy include storytelling and emotional branding, innovative product technology, extensive global distribution channels, endorsem*nts and sponsorships, and effective use of traditional and digital mediums for advertisem*nt and customer engagement.
What makes Nike unique compared to its competitors? ›How is Nike different? Not only does Nike have a variety of options of products, but Nike also owns Hurley, Converse, and Jordan brands. By offering more products to more people, in more markets than any other sports company, they are able to capture a far greater market share of the market than any other company.
What are the competitive strategy 3? ›There are three competitive strategies that you can implement across your business: Cost-leadership strategies, differentiation strategies, and focus strategies.
What are the strategies Nike uses? ›Nike's promotion strategy is focused on creating strong, emotional connections with their customers through advertising, sponsorships, and events. They use a variety of marketing channels, such as television, social media, and influencer marketing, to reach their target audience and build brand awareness.
Who is Nike's biggest competitor and why? ›With annual revenue of $22.12 billion, Adidas is the biggest competitor of Nike. The brand actively serves across 55 countries via more than 2500 stores worldwide.
What are the three major strategies to gain competitive advantage? ›According to Porter's Generic Strategies model, there are three basic strategic options available to organizations for gaining competitive advantage. These are: Cost Leadership, Differentiation and Focus.
What is the key to Nike's production strategy? ›The key principles behind Nike's supply chain are outsourcing and diversification. Nike contracts 100% of its manufacturing for footwear and apparel out to independent suppliers. It was one of the earliest multinationals to adopt this approach.
What business strategy to gain competitive advantage? ›If you want to have a competitive advantage over your rivals, you must create a unique selling proposition for your small business, explains Entrepreneur. This can help you create better products or services, offer better pricing, make it easier to buy, or create a benefit that your customers want.
What are the key success factors of Nike? ›Nike's business strategy is straightforward: engage in brand creation through emotional marketing and sports star endorsem*nts, manufacture products with high-quality, market-leading technology, and acquire competitive sports brands. Nike's swoosh dominates the footwear industry.
What is Nike's biggest competitor? ›
Established in 1949, Adidas is a global brand and Nike's top competitor. Nike vs. Adidas rivalry cuts across different sectors from footwear, apparel, and sports equipment, and accessories.
What is Nike's target market? ›The Nike target audience tends to be from the higher-income socio-economic group, reflected in the premium brand image and pricing of Nike products. The average Nike customer is a sports enthusiast, interested in leading an active and healthy lifestyle.
What are the 4 four major competitive strategies? ›Porter's four competitive strategies are cost leadership, differentiation, cost focus, and differentiation focus strategies.
What are the 4 competitive strategies? ›- Cost leadership strategy.
- Differentiation strategy.
- Cost focus strategy.
- Differentiation focus strategy.
Example: Archibald Products is an online retailer of various household goods and uses a cost leadership strategy to maintain lower shipping costs for their customers and competitive production costs. The company purchases large quantities of the products it sells so that it can distribute them quickly to customers.
What competitive strategy does Adidas use? ›Adidas has worked for more than 70 years to build the brand that it is today. The Adidas strategy for marketing emphasizes quality, innovation, diversification, and heavy-budget advertisem*nts to stay as one of the best brand in a competitive market.
Is Nike in a perfectly competitive market? ›Nike is an example of monopolistic competition because they have the aspects that a perfect competition has, except their products are not exactly like their competitors such as Adidas and Under Armour. Monopolistic competition is characterized by product differentiation.
What is Nike deliberate strategy? ›Nike has made a deliberate decision to increase the appeal of its brand among younger, liberal, ethnically diverse consumers globally while risking not only a portion of its existing customer base (older and more socially conservative buyers) but also its overall reputation — at least in the short term.
Does Nike use a global strategy? ›Nike's Global Strategy
Not only is Nike successful at marketing their products in the United States, but they have grown into a truly international company through their approach to global marketing strategies.