Sunday, February 27, 2011

Nike Product Differentiation

Nike designs, develops, and markets high quality footwear, apparel, equipment, and accessory products. Nike is the largest seller of athletic footwear and athletic apparel in the world. They have been around for many years and have developed themselves as the most popular brand name in the sportswear industry. The company sells its products to approximately nineteen-thousand retail accounts in the United States and through a mix of independent distributors and licensees in approximately one hundred and forty countries around the world.

Continuing, consumers around the world have become very loyal to Nike’s products and services. One of the main reasons why Nike has become so successful is because their consumers are extremely loyal. For a while now Nike has been doing a terrific job sponsoring and doing endorsements deals with megastar athletes. Some of the megastar athletes which have had a tremendous impact on Nike are Michael Jordan, Mia Hamm, Venus Williams, and newly acquired Tiger Woods. This company has been around a long time and has also sponsored some of the greatest recent sporting events. Nike is very familiar with the NBA, sponsoring all-star games as well as regular season games.
Like many companies Nike wants to have a global presence in the marketplace for selling its apparel goods. Nike has to choice a corporate-level strategy first and then determine which business level strategy for the market is best. Nike can choose a business level strategy based on if it has a different product then others, is a cost leader, has differentiation; is a focused cost leader, has focused differentiation or integrated cost leadership/differentiation.

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