Nike Case Study Pt. 1

Only available on StudyMode
  • Download(s) : 129
  • Published : March 28, 2012
Open Document
Text Preview
Problematic Situation
Should Nike be searching for other acquisitions or stick with the athletic shoes?

Causes of Success so far

In 1998 when Nike's sales were falling and the Air Jordans were no long selling as they used to, Nike had lost control of their business strategy. However, Nike found a way to prevail. In the past Nike focused primarily on making shoes for the track and basketball areas to build its share in this market. When Nike's sales started to fall management realized they needed a broader position. Nike began taking advantage of other shoe markets such as soccer shoes, skateboarding shoes, in-line and hockey skates, lower-priced shoes and fashion sneakers such as Converse.

Nike has always been a strong advertiser. Nike uses top of the line athletes to wear and promote their shoes not only in commercials but also in games. Whether it was Michael Jordan in a Chicago Bulls game, Serena Williams in a tennis match or Tiger Woods at the PGA tour, Nike has the money to spend on advertising. Nike's marketing is designed to persuade customers that its shoes are not only superior but also a high fashion statement a necessary part of a lifestyle based on sporting or athletic interests. Nike has proven to be a leader in the industry for nearly 25 years. When customers purchase a Nike shoe they know it is a quality product meant for sports or fashion. Nike has spent millions of dollars on their brand name so that people all over the world are aware of Nike. Nike's growth came from its business model, which has always been based on two original functional strategies: to innovate state-of-the-art athletic shoes and then to publicize the qualities of its shoes through dramatic “guerrilla” marketing.
Nike's original starters were innovators.

Dimensions of Future Uncertainty

Nike may branch out too far and get lost in transition. Customers know that Nike is an outstanding company in regards to athletic wear but if...
tracking img