Nike International Strategies

Currently, Nike is a favourite brand amongst celebrities, customers, professional teams, and athletes because of its international strategies. The company is considered a global quality brand seller that sells designed and expensive products for customers who require the highest quality. The international strategy has no local incorporation which is proved by the fact that the same logo and slogan is used for all international ads. The slogan is “Just do it” while the logo is a “swoosh’’ and are the same globally (Frisch, 2008). Pricing strategy is first-class with Nike making sure that prices are the same everywhere internationally. In addition, products are under the same brand name without any incorporation of local features. Promotion of merchandise is the same in all countries where the products are supplied. In marketing the company seems to present an image that blends themes of empowerment, irreverence, and transcendence all making the “swoosh” associated with sporting culture. Furthermore, it is amongst the few companies that use theories in semiotics, culture, psychology, messages, and culture to promote Nike’s image globally.

Reference:

Frisch, A. (2008). The Story of Nike. Minnesota: Creative Education. Pp. 1-46.

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.

Nike Implementing Corporate Diversification

Nike has employed creative marketing and advertisement platforms in building brand awareness and equity of its diversified products. For instance, the company uses Tiger Woods a skilled golfer to build its line of golf products. It further employs professionals in various departments that include distribution, marketing, finance, product management, research and design, information technology, and product development so as to sensitize the market of its diversified products (Slack & Milena, 2005). Nike also operates an internship program every summer lasting for three months giving students an insight on the diverse brands. Other avenues Nike accomplishes diversification strategy is through mergers, joint ventures, takeovers, and acquisitions. The company also has an R&D unit called the innovation kitchen located in the main parent company in Oregon, to enable it to continue producing unique products such as the cushioning system in shoes.

Reference:

Slack, T. & Milena, M., P. (2005). Understanding Sport Organisations: The Application of Organisation Theory (2^nd ed.). Illinois: Human Kinetics. Pp. 113-116.