stream For example, the company integrates cutting-edge designs for its shoes. Another big part of Nike's product differentiation strategy is its relationships with its customers. Strategy used. Nike: Sourcing and Strategy in Athletic Footwear This case gives students an opportunity to examine the costs and benefits (pros and cons) of vertical integration and outsourcing as vehicles for achieving a firm’s strategic objectives. :u����D�}��@�N�_�DQ. ��M?Gik|Fk^��7�$����_��m2�I�b8�ݙ_�J�T�Wߕ`�(t�H�a3M��?$Ź�|�\��Uݶ��Xl1���D:�`I��1�R��!��`�O�C���s�*����ǿ�gV=91�\M(��R�K��d�*1��?~�5��I$�'�p�]�C6p�C!�����FW%��~�*{BW�W9�h��{�8�)*�)�l9G�'����]�A����>�a���ݴ���$�,�[ᤜ/5�l�b"�)&l~G�����}Q���,sc�;�l�:Q�iB�C�F��6-�>�x�` The risks will have a negative influence about Nike’s future development, for example, the market share in the world, reputation, brand image and customer loyalty. Differentiation Strategy Nike incorporates a business level strategy that most resembles a differentiation strategy. Nike, with its differentiation strategy, the company is continuing to separate its self from the competitors by using its superior technology and innovation. #contentmarketing. %PDF-1.5 The following post is an abstract of a longer document. A company's brand differentiation strategy tends to evolve from its strengths. Go where your audience is. The competitors were also engaged in aggressive differentiation strategies. �Vp��GJ�b����FSxƿ��q�Xd��>}|t/{(�A�t�Lw�zRְG�ѓ���b� States and Asian markets, Nike uses product differentiation as its main product strategy while employing the use if price-based product strategy when dealing with the African market. A differentiation strategy may mean differentiating along 2 or more of these dimensions. <> In addition, the premium pricing strategy also caters for the company’s broad differentiation strategy. NIKE’s mission statement is very straightforward. This article will give you unearth some interesting facts as to how well the brand has performed in the past, how it managed to ward off its competitors like Pune, Nike and what has been the strategy, be it the business strategy or marketing strategy of Adidas, that made it come out stronger than ever. NIKE COMPETITIVE STRATEGIES Nike has a combination of two strategies: • Best cost provider strategy. endobj 4.0 RISKS OF NIKE’S CORE MARKETING STRATEGY. Nike plans to put its eggs in fewer baskets going forward. • Differentiation: wtp , soc (Goldman) • Cost Leader: wtp , soc (Enterprise) • Dual Advantage: wtp , soc (McDonalds) Value wtp soc 15.834 Marketing Strategy. Differentiation strategy is nothing but to differentiate the product or service. ���4%[P�+~f�gZEG�"�_�c���q1��&�� R���V���:�.� ��������:f֖��fuɪ�p��zI�$�ኬI �=ᤆ�1���Q Page 4 of 9 of authors such as Prahalad & Hamel (1990), Stalk, Evans & Shulman (1992) and Hall (1994). endobj Nike sales boomed in the late 1970’s since the issue of jogger shoes. Download full-text PDF Read full-text. stream x��U]kQ}_��0���8����i���4�>�>,uc������;�j\��Tl]�9sfΝ]����������%FCLҤ�N�T0yJ �>�@�x��|'�̓��2M���M�<2�_`2N�kR���! For example, if your product is more expensive than the competitor selling the standard product, and the consumer doesn't see the added value in your product, they'll likely choose the cheaper option. Lecture Slides. The differentiation strategy of Nike is quite competitive so Nike should ensure any international marketing strategy it applies should enhance its superior brand name. Nike’s differentiation strategy is to establish the company as the standard in athletic wear.