Nike: Spreading Out to Stay Together
By: Karol Czajkowski
1. If a sporting good can be used in sporting event, and especially if that event can be televised, Nike has likely made such a product and added a swoosh to it. But in this day and age, are there anymore sporting products that Nike would do better not to produce? Explain your reasoning.
In the present day there are some products that Nike would not have to do and at the same time do very well. One of their brands is Air Jordan, and in my opinion Nike is able to go without this brand. Having a sub brand under their big Nike one is economically right, as both Nike and Air Jordan are producing the same products for the same sport. Therefore since they make very similar products Air Jordan should merge together with Nike and that way it will be better for their economy. Nike is also a producer of baseball equipment. One of the products that they could eliminate is the production of baseball gloves because it has barley part in this market as Rawlings dominates most of the baseball glove market. And Nike is not a huge competitor against them since there are bigger companies that could challenge them but Nike is not one. That was they will save money on the production of these baseball gloves that do not sell well. Similarly, Nike also produces tennis clothing and shoes. But these products are extremely similar to the ones under their running products, similarly to the Air Jordan situation. Once again it would be better economically to merge these two brands together to increase the profit of Nike as a whole.
2A. This is an advantage strategy for Nike because it adequately represents customers’ perceptions of the Nike brand and its products.
Nike’s strategy of having the taglines like “Just Do It” that establishes the brand and its products is a very successful strategy because it adequately represents the customers’...
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