Therefore, selling them online will allow more users to get their hands on the coveted shoes. Nike has been strongly criticized for only releasing a limited number of Air Jordans despite the high demand. When talking to ABC 13 about his experience with the Air Jordans, Thomas Nauls, a shoe store owner expressed: “I don’t think that Jordan is doing enough to protect the integrity of what Jordan represents. Part of the problem is the [Small] number of Air Jordan shows released. It creates the hysteria and its great from a marketing standpoint, but they don’t think of the ramifications”.
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.
Today, shoes are worn for comfort, design, color, and even lifespan of the shoe. I've always been a fan of collecting certain types of shoes just because of the design itself and the overall style as well and sometimes this is exactly what customers are looking for. They even have a custom shoe builder on almost all shoe companies you can think of. Nike is one of those companies and it's a great way to let
2.0 Competitor Analysis The industry that Under Armour is involved with is extremely competitive, with competing against big names such as Nike or Adidas. Although it’s hard at the beginning, but customers want to have the highest quality apparel therefore they turn to Under Armour. Under Armour stays in the competition by having high quality products, and also by signing endorsements deals with major athletes (Owusu, 2017). By having major athletes represent Under Armour, means the company will be bringing in "big money" because they will bring up the brand’s popularity. The major competitors in this industry are of course inclusive of big names such as Adidas, Nike, Dick’s Sporting Goods and Puma.
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.
2.0 Porter’s five forces of Levi’s Strauss Threat of new entrants – low • Entry into a market where the production volume is so high already is not really a threat because the cost of production goes down. • Levi’s can produce more at a lower price and possibly sell for more. Bargaining power of supplier – low • Competition within manufacturer is high since it is mass – produced. • Manufacturer is located in many third world countries: Central America, China, Cambodia therefore Levi’s can switch to other manufacturer easily.
Nike has a unique competitive advantage which is the Nike Sport Research Laboratory (NSRL). Nike creates shoes that lessens the impact on the environment while not obstructing the athletes to release their fullest potential with the shoe. Market Situation Analysis Nike currently sell most sports equipment, like sport shoes, sports bag etc. The price of Nike
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.
International marketing strategy is a combination of marketing principle that could be used to formulate a marketing strategy for specific products and services within one or more countries to extend or internationalise the company. The research paper is based on the international marketing strategy of Nike Inc. (a Sports Apparel retail company working internationally) to help the management of the company shortlist and identify potential market for them to expand their business. It utilised macro and micro analysis of the sports retail market to identify the potentials of the industry that would help them to increase their business performance in the international marketplace. Macro Factors PESTLE It is noted that PESTLE is one of the most important and effective that often used by organisations in order to assess different macro factors that influence their activities in a negative manner (Li, et al., 2014).
Simply put, Nike’s target market is mainly customers who have more concern for the quality and utility of the product than they have for the price at which the product is being sold. This helps to ensure that pricing never has to be adjusted downwards in attempts to woo in a larger number of customers. For any company to achieve success from the marketing strategies that it has put in place, it has to ensure that its strategy is flexible enough to keep up with the changing times and to also accommodate a large variety of customers. So as to do this, it is imperative that the products being produced by the company be innovative enough to exceed what is being provided by competitors in every possible way. Nike chose to take this into deep consideration and this resulted in it making a few changes on its marketing strategy.
Nike began to sell sports apparel, athletic sports bags and extra accessories since 1979. Also, their brand Cole Haan transmits a whole clothing-line of casual dress and footwear as well as the latest and accessories for men, women and children. Correspondingly, they market head gear under the brand name ‘Sports Specialties’, for motorbikes and bicycles through ‘NikeTeam manufactures’. Furthermore, they distribute ice skates, roller blades, safety gear, and jerseys.
Initially, each country was provided with subcontracts for production while Nike retained all control of the products. Through this move, Nike was able to reach global market supply goals, but was also able to gain a competitive advantage, which competitors have found hard to beat over the years. By taking advantage of outsourcing opportunities, Nike is also able to produce at very low both through the raw materials and the cheap labor availability. As a result, Nike is able to largely invest in marketing and designing innovative designs, another strong tactic to survive competition in the industry.
Competitors: PUMA, K-Swiss Inc., LaCrosse Footwear, Inc., Dick 's Sporting Goods, Inc., New Balance Athletic Shoe and Adidas – (Adidas have currently branched out into customization of footwear products. To sustain its competitive advantage over competitors, Nike has to take this to consideration). However, a large number of competitors in an industry usually indicates lots of demand for the products or services provided and this will help Nike to succeed in the long run. Suppliers: Nike outsources almost all of its footwear production to independent third party suppliers. As Nike has a minor control over quality of the products.
Internal Analysis When conducting an internal analysis you must know the firm’s resources and capabilities. Nike’s resources are assets from succeeding in their industry. These resources include financial resources, physical resources, human resources and organizational capabilities. Firms Resources & Capabilities: Human Resources-. The company displays a strong workforce of over 30,000+ employees.
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 .
