By this strategy, Nike measures the value customer is willing to pay for every product. A strategic objective linked to market penetration is to increase Nike’s market presence by increasing the number of authorized retailers. What is more, high sourcing risks may be resulted from the focus of activities of achieving scale economies. What the subordinates think or achieve for the company is not important. Inevitably, the strategies and the structure of the firms play a key role to influence the national performance in particular sectors. We realize that the team-mentality that captured the spirit of athletics in the late 1980's and early 1990's has been replaced by a sense of individualism. A financial objective based on the differentiation generic strategy is to maximize Nike’s profit margins, such as on new sports shoes. You can view samples of our professional work here. Nike routinely relies on the emotions of activity, heroism, success, achievement, and triumph to appeal to customers, a strategy that has been successful regardless of the market. (2007) identified two groups of motivations. This strong brand is able to use premium price points because customers see its products as dominant in the market. The latter one includes production alliance, marketing alliances, financial alliances and R&D alliances. Marketing constitutes a very large part of the entire business strategy and excellent marketing capability of a brand means excellent sales and revenue. Nike sets this pricing strategy for the products which create a high level of brand loyalty and also for its leading-edge technology. (Robinson, 1983) This is because IBM mainly is comprised of middle-class employees and it has a powerful US-derived organization culture, namely, the respondents may not reflect local national cultures. So Blue Ribbon Sports began to import high-tech sports shoes from Onitsuka Tiger of Japan. In applying this strategy, Nike has attained a great deal of consumer insight, which it uses to offer uniquely designed premium products to the athletes. The “every athlete in the world” component indicates that the company’s corporate mission pushes the business to target every consumer in the world. The second one is the specific reasons, including gain location-specific assets, overcome legal constraints, diversify geographically, and minimize exposure in risky environments. While the Nike organization does focus on intensive growth strategies it also uses research development and other innovations. Nike's digital strategy is more than just throwing up a website or rolling out an app where you can shop for Nike shoes at your leisure. (Roberts and Boyacigiller, 1984) Fourthly, Mead (1994) stated that Hofstede’s research has been outdated whose research was conducted between 1967 and 1973. Nike’s new retail strategy. He already thought that it would be beneficial to the company if it used manufacturing plants in other countries outside the United States, because the labor costs would be much lower. For example, Nike increases its stores and retailers in the United States to sell more athletic shoes to American consumers. Product Development. The generic strategy trap. (2008) believed that the best strategy should be consisted of syntheses of all these approaches. Daniels et al. Table 2: Strategic Orientation and Configuration of Assets and Capabilities in Multinational, International, Global, and Transnational Companies, Building flexibility to respond to national differences through strong, resourceful, and entrepreneurial national operations, Exploiting parent-company knowledge, capabilities through worldwide diffusion and adaptation, Building cost advantages through centralized, global-scale, Developing global efficiency flexibility, worldwide learning capability, Decentralized and nationally self-sufficient, Sources of core competencies centralized, others decentralized, Dispersed, interdependent, and specialized, A number of organizations tend to cooperate with other parties such as their suppliers, distributors and competitors, when they believe that it is difficult to develop and enhance the global competitive advantages in the increasingly complex global environment (Bartlett et al. Efficiency can be considered as the ratio of the value of a firm’s output to the value of its input while Flexibility means the “the ability of a company to manage the risks and exploit the opportunities that arise from the volatility of a global environment” (Bartlett et al., 2008, p.200). At the same time, the modern alliances concentrate on the development and innovation of new products and technologies rather than the distribution of existing ones. (Hodgetts et al, 2006). Therefore in these countries participative leadership style could be useful. Factor conditions can be categorized into two forms: “Home-Grown” resources and highly specialized resources. Nike had to urge its suppliers to re-locate search for other owner-cost countries to relocate their operations. But there is a negative side to it these days. In addition, governmental sourcing could enlarge product demand. The generic competitive strategy of differentiation helps the company enter new markets, based on product attractiveness. A suitable strategic financial objective based on this intensive growth strategy is to increase Nike’s market share through cutting-edge technologies integrated in the design of sports shoes, apparel and equipment. The brand is … Nike implemented this intensive strategy in its early years, such as when it introduced apparel and sports equipment to its product mix. Whereas in 1980, Nike sold 175 different styles of shoes, it offered many different styles in its spring collection. Firstly, Tayeb (1996) pointed out that this research was based on attitude-survey questionnaire which could not effectively reflect underlying values of culture. Nike’s differentiation generic strategy provides unique products. Secondly, IBM as the only sample is not representative. Through an investment of $500 each by Phil Knight and Bill Bowerman, the company (then called Blue Ribbon Sports–BLS) was founded in 1964. All work is written to order. The reason why Nike, Inc. has gained a competitive advantage over other companies is that it undertakes an evaluation process, which involves evaluation of resources, clarification of goals, defining customers and examining competitors. The Porter Generic strategies describes the competitive advantage in the case of low cost and higher cost and it describes the competitive scope, overall cost leadership, cost focus and in differentiation focus. $35.80 for a 2-page paper . Show More. Note: The above content is part of the following book. were still producing their own shoes in higher-cost countries like the United States and Germany while he US consumer appliance and electronic markets, were starting to be taken over by lower-cost, high-quality Japanese producers. Nike quality and durability is a critical part of their strategy to be able to command high prices for their products. They are flexible and responsive to local environment, but there is a lack of capability to learn globally within these firms owing to the fact that almost all national units operate independently. Thus, this intensive strategy supports Nike’s differentiation generic competitive strategy via product innovation. Track key industry trends, opportunities and threats. Configurations of governance structure, generic strategy, and firm size. The positioning strategy was ‘The lightest shoe in the market that would last in longer-distance running at a price lower than the German brands in the market’. In the second and third section, Bartlett and Ghoshal’s theory will be used to analyze both the competitive challenge and the collaborative challenge of Nike in China. Gain competitive intelligence about market leaders. This is not an example of the work produced by our Dissertation Writing Service. Nike Inc.’s generic strategy for competitive advantage emphasizes product mix diversity. An intensive strategy shows how a company grows. Diversification. The aim of this project is to reveal Nike’s competitive advantages in global market and especially focus on company strategies in Chinese market. In June 2017, Nike outlined a new strategy to drive growth into the coming decade, which it called Consumer Direct Offense. As an example, the USA leaders usually appraise the performance of the substance individually, because it was found by Earley’s study (1989) that, American performed well when they are told their achievement would be measured individually. The company has employed several methods to increase customer loyalty. Nike didn’t build its … Nike, Inc. is a marketer of sports apparel and athletic shoes. Initially, the Nike brand was on athletic shoes only. The inception of the company strategy of Nike was born when was Phil Knight was still a university student. Apart from making innovative products, Nike spends a major sum on marketing and promotions. 3.1 Sports products Industry relate to American National Diamond. We're here to answer any questions you have about our services. This intensive strategy involves the introduction of new products to grow sales revenues. Haven’t found the relevant content? Nike’s secondary intensive growth strategy is market penetration. Porter (1990) pointed out “Government’s proper role is as a catalyst and challenger. Few of them are female. International Journal of Competitive Intelligence, Strategic, Scientific and Technology Watch Sciwatch Journal, vol 4 issue 1, April (2011) 1 NIKE Strategy: Strategy Management Albert Alarcón Ros Department of Business Management, International University of Catalonia E-mail: albert.alarcon.ros@gmail.com Abstract. All staff would suffer if one went wrong (Lee, 1982). Table 1: Worldwide Advantage: Goals and Means, Achieving efficiency in current operations, Benefiting from differences in facto costs-wages and cost of capital, Expanding and exploiting potential scale economies in each activity, Sharing of investments and costs across markets and business, Managing risks through multinational flexibility, Managing different kinds of risks arising from market-or policy-induced changes in comparative advantages of different countries, Balancing scale with strategic and operational flexibility, Portfolio diversification of risks and creation of options and side bets, Learning from societal differences in organizational and managerial processes and systems, Benefiting from experience- cost reduction and innovation, Shared learning across organizational components in different products, markets, or businesses. Nike is facing big names in the sportswear industry, which are well established and have integrated in the Chinese business sector. He already thought that it would be beneficial to the company if it used manufacturing plants in other countries outside the United States, because the labor costs would be much lower. Organizational Culture Characteristics: An Analysis, Nike Inc. SWOT Analysis & Recommendations, Nike Inc. Operations Management: 10 Decisions, Productivity, Nike Inc.’s Marketing Mix (4Ps/Product, Place, Promotion, Price) - An Analysis, Nike Inc. PESTEL/PESTLE Analysis & Recommendations, Nike’s Promotional Mix (Marketing Communications Mix), Puma’s Generic Strategy, Intensive Growth Strategies & Competitive Advantage, Puma’s Organizational Culture & Its Characteristics (An Analysis), Puma’s Mission Statement and Vision Statement (An Analysis), Burger King’s Generic & Intensive Growth Strategies, PepsiCo’s Generic and Intensive Growth Strategies, Toyota’s Generic Strategy & Intensive Growth Strategies, Puma’s Organizational Structure & Its Characteristics (An Analysis), Ford Motor Company: Generic & Intensive Growth Strategies, Harley-Davidson’s Generic & Intensive Growth Strategies, About Nike – The official corporate website for Nike, Inc. and its affiliate brands, Generic Strategy (Porter's Model) & Intensive Growth Strategies. Strategy adds an aura to Nike ’ s ( 1980 ) generic strategies boost Nike ’ s differentiation generic strategy. 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