Its products always dominate the top selling shoe models in US and abroad.  Ma, H., 1999. Its âSwooshâ logo and âJust Do Itâ slogan keep it apart from the large crowd of brands. SAGE. While the number of major brands playing in the international market is limited, the level of competitive rivalry is still very high because of each brand investing heavily in product quality, innovation and marketing as well as research and development. Nike Success. The overall bargaining power of customers is high which gets moderated to a small extent by the brandâs strong image, marketing capabilities, and the level of trust and customer loyalty. In past apart from other marketers, Steve Jobs too appreciated the marketing strategy adopted by Nike. Competitive pressures against the brand have also kept growing. It invests a lot in innovation which is a major part of its business strategy. One of the critical ingredients of Nike business model success is its ability to create demand for its products. If you need assistance with writing your essay, our professional essay writing service is here to help! In this regard, it also reduced the number of suppliers to have only those onboard who are committed to quality and sustainability. When it acquires a new subsidiary, it insists on its own brand being used. Moreover, the sports shoe and apparel brands depend on high economic activity and higher disposable income for sales and revenue. In 2015, Nike opened its largest distribution center at Tennessee. In such an environment while it remains generally easier to do business in the countries with a, The importance of economic factors can be understood from the fact that low economic activity results in lower sales and revenue for international brands. In fiscal year 2020, 35% of its Nike brand revenue comes from online sales. But far from being the result of a desperate pandemic-induced pivot or some happy accident, the seeds of Nike’s current resilience were planted deep into its strategy several years ago. * Nike is a very competitive organization. The remaining comprised equipment and the Converse Brand. Investing in research and development is helping brands create innovative products and grow their sales and market share. Competition is also fierce from Reebok and Adidas, although neither has managed to corner the brand reputation that Nike has achieved (Ma, 1999). The Asian markets particularly have seen faster growth. Nike is the worldâs largest sports shoe and apparel brand of which has focused on product innovation and marketing for growth. The first range of shoes was launched in 1972 and Nike, named after the Greek goddess for victory was established. Customer loyalty: Nike also enjoys a very high level of customer loyalty and trust among its customers. Nike is still the premium brand in sports apparel and has maintained this by being at the cutting edge of design technology, particularly in relation to sports shoes. Being recognised as a world expert of design and sports apparel has been the central basic strategy for Nike and has proved to be very successful both in design and retail, expanding its scope both in terms of geographic location and type of product (Brown & Eisenhardt, 1998). Currently, it is operating its e-commerce websites in only 45 countries. Nike use it uses the value based pricing and price leadership strategies, where the price of the product is based on the value that is placed on that particular product by the consumer. Nike Business Strategy and Competitive Advantage: Nike is the leading brand in sports shoes and apparel industry. Whilst Nike managed to recover from this by acting swiftly to remove such suppliers, this offered competitors opportunities to gain market share from the company, during this time of crisis. Any form of political unrest, particularly in the country of production can be a huge potential threat (Collis & Montgomery, 2005). In the industry, Nike’s has maximum or main competition; direct competitors of the company include Adidas AG, Puma AG, and New Balance etc. Nike’s first self-lacing shoes, HyperAdapt 1.0 . The world has been through a bitter period of recession just some years ago which had resulted in low employment and lower disposable income. Footwear & Apparel Industry external analysis: Below is a SWOT analysis listing Nikeâs key strengths, weaknesses, opportunities and threats: Increasing marketing and overhead operating expenses: Rising competition in the sports shoe and apparel market has resulted in an increase in Nikeâs marketing related expenses. However, despite its international growth the brand depends heavily on US market for revenue and income. Strategy & Leadership, 34 (4). Harvard Business Press,  Hoffman, A.J., 2000. Collis, D.J. Its responsibilities include selecting and contacting the right suppliers for quality goods and services. It can also try backward integration since it is heavily dependent on independent manufacturers down its supply chain. Strong brand image 2. Company Registration No: 4964706. Nike makes some of the best ads in the business. Corporate Level We use strong diversification in what we sale to the differentiation of our consumers. More than 550 factories in 42 countries make Nike products. Recent difficulties have been encountered by Nike in relation to the working practices of its suppliers and, as such, a much greater degree of control has been taken by Nike headquarters in the US to ensure that all working practices are ethical and sustainable in the long term. Ma, H., 1999. Nike's Values 9. Other Interesting Facts 10. Nike has chosen to use a localization strategy particularly with respect to Twitter and Instagram (McCulloch, 2014). In U.S. too, growing economic activity has resulted in healthy spending by the consumers. Economically, Nike faces considerable challenges. The EU has passed several laws that are not so favourable for international brands operating there during the past few years. â Marketing capabilities: Nike is known as one of the best marketers in the entire industry. All these factors mean lower bargaining power of the suppliers against the brand. Creation and preemption for competitive advantage. This resulted in lower sales and revenue for fashion and sport shoe brands. However, U.S. still remains the largest market for Nike accounting for around 46% of its total revenue (Nike & Converse sales) in 2017. Direct to consumer revenues grew 6 percent to 4.2 billion dollars considerable market penetration across developed.. 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