Nike Strategic Alliances

Strategic Alliances

Nike has entered into alliances with independent firms so that they can devote entirely to marketing their brand (Duane et al., 2008). The concept of strategic alliances is also of beneficial to Nike when the company does not have the muscle and brand to infiltrate certain unrelated markets. Nike’s strategic alliance with apple was one such instance where the company managed to infiltrate in the music world while also apple benefiting to infiltrate in the sports market. Nike has also leveraged its core competencies—product design, marketing, and distribution—that are the foundation of domestic success through forming a strategic alliance with strategic partners in Asia who supply and manufacture merchandise. In order to boost its online marketing strategy, Nike also formed an alliance with SINA a leading Chinese firm in marketing. Both companies—SINA-NIKE— leverage SINA’s three main business lines—SINA.net, SINA online, and SINA.com to provide the latest interactive news on stars and competition, sports team content, and fashion and sports gear.

Reference: Duane, R., I., Hoskisson, R., E. & Hitt, A., M. (2008). Understanding Business Strategy: Concepts and Cases. Ohio: Cengage Learning. Pp. 173-176.