Competition always leads to better products. Let us look at Nike and Under Armour, for example. Both of these companies produce well made shoes. If Nike developes a brand new shoe that everyone loves, Under Armour will strive to make a better shoe. Once Nike sees Under Armour gaining popularity, Nike will strive to develop a better shoe.
When it comes to athletic apparel, the first company people think of is either Nike or Adidas. Why is this so? Both Nike and Adidas have done an impressive job in marketing their products, with popular spokesperson like Kobe Bryant or Derrick Rose. Nike’s success is attributed to its products contributing to the success of the athletes who purchase them. Nike and Adidas seemed as though they had control on the athletic apparel oligopoly, but recently, Under Armour has become a serious competitor to the two companies.
Nike spend a lot of money on marketing and creating products. Nike has created products with high quality in almost every sport around the global. Nike boosted their credibility and reliability, by manipulated uses of Ethos, Logos and lastly Pathos. I selected nike's ad because it on TV commercials. Nike's logo and slogan catches people's attention.
Under Armour faces a twofold challenge, in the product and market area. Their heritage product category was compression Heat-Gear, and Nike the major competitor, was planning to take control of the new customers generations by creating a whole new line called Nike’s Pro Combat. Besides that, the marketing side was also having struggles. Since Nike created a strategy in which a strong emotional connection with customers was developed. This would have as repercussion the displacement of the Under Armour brand and therefore the slow decline of the company.
Their swoosh logo and "just do it" slogan are highly recognized among the public. Innovation is the key aspect to Nike's competitive advantage. According to an article posted in Chicago Now, Nike President Charlie Denson said, "Our ability to be authentic, stay connected, and remain distinctive through innovating across all areas of our business is a definitive competitive advantage." The Nike Corporation prides itself in being a leader in their industry because of their innovation, and protecting these ideas with patents. Nike currently has approximately 3,750 patents to this date, which is way more than any other competitors including Adidas and Under Armour which are in the same
Nike has sustained positive revenue in a worldwide market focusing on a healthy and active lifestyle. For the past 3 years Nike has gained a gross profit ratio of 8.73% in fiscal of 2013, 10.28% in fiscal of 2012, and 8.28% in 2011 . Thus showing the financial power Nike has, well the firm holds a net income of 2.5 billion in the fiscal year of 2013. Nike’s largest product category is footwear, representing over 55% of the companies revenue. Nike uses their financial resources ability to obtain large advertising plots, whether it is a commercial on television, advertisements on the Internet, or product promotion in athletic facilities.
Under Armour offers durable, functional, and high-quality products for athletes. The strategic methods implemented by the company have only got it so far. It is now in competition with big brands like Nike and Adidas. However, it will have to go the extra mile to be able to be on the same level as those rivals. Under Armour focuses more on athletic wear rather than lifestyle wear.
For Nike to be well known as a company, it comes to a conclusion that they are working in a right way
Goals Nike focuses on pursuing opportunities and improving their product to enhance the human potential. Thereby they create product, services and experiences for athletes helping them overcome limitations such as climate and road types. Core Competency and Sustainable Competitive Advantage Nike’s have maxims to help Nike employees to create better products and provide better services for the customers. Henceforth creating better customer value compared to companies.
From 1984 to 1996, Nike signed the endorsement contract with Michael Jordan, thus shaping the brand image of the professional basketball shoes, surpass Adidas and Puma as a leading brand in the industry (Kincade, 2010). The success of Nike air shoe let Nike acknowledge, design and promotion is the most powerful weapon in the competition. In order to concentrated on its core competency in the design and promotion, Nike didn 't go to
Nike has managed to shift their Manufacturing unit into Asian country’s were the labor is cheap to be exact wages of USD1 an hour were so little as one-tenth of those given in the US. No wonder that a pair of shoes which were sold for $150 in 1991 is made by indoasian women who were 58 cents a day but the situation has started to change and due to that reason the company has managed to minimize cost of production and not only double triple the the revenue as comparing to the year 1996. Finally we come up with promotion and advertising campaigns which became a grand success not only because they introduced sportspersons , they also introduced innovative ideas and wise strategies and the image of the Product, due to this process we can say that Nike targeted a huge no of audience and created a Prestigious brand which will be easily available for average people . they also came up with great tag lines such as ‘there is no finish life’ , and in the 1980 they changed it into “ JUST DO IT “ these quotes of tag lines are considerd very simple but very attracting and extremely encouraging for the customers .
An advantage of how Nike uses this strategy is that it allows them to boost their profit by selling differentiated products and Nike have other products that will compensate for products that fails in the market. The difference between Nike and its competitors is that Nike produces their products for men, women, and children in different ways based on the basis needs, physiology, preference of design, and the trends in the market. However, the biggest threats to Nike’s market is the stiff competition with the other sports brands that sell similar products, which causes Nike to continuously come out with new products with new technologies and better
It will be easily giving the consumer make the decision in short time when buy the Nike’s product without compare with other Nike retail. Weakness 1. High Prices Nike is a strong brand at the global market and it normally sells the product in the market with high price to get higher margins and profit value. However, many competitors cost of the footwear is lower than Nike in the market, particularly in emerging markets, this can give consumers get many choice about the footwear.
The legendary position that Nike enjoys today has been achieved through attractive and innovative design, high quality production and effective marketing strategies. There are very many marketing strategies that the company has put in place to make sure that its products appeal to different segments of the market.
Probable factors that could affect Nike’s business judgements are a range of demographic, social, economic and political. A few have already started to transpire, though others are purely likelihoods. External factors affecting this mix is one of the most common, technology. Before Nike releases its brand new product line to the market, it’s always prepared to authorize that whether or not there has been any sort of major advances from the other competitors that would tracker its launch. Thus they must time this carefully, as other competition may demand to shadow its release with their marketing
