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Nike vs. Reebok

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  • November 2006
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Nike vs. Reebok
Questions
1."The success of Nike was strictly fortuitous and had little to do with great decision making." Evaluate this statement.

The important part of the success was due to the far-sight of Nike's management team. Nike's CEO, who was a marathoner and knew what runners wanted for their shoes, had made a very basic strategy work; "make the products that fit their consumers' needs". Examples of great decision making are: •Diversifying products (into sports wears and others) was a smart move that had contributed to the current and growing success of Nike. •Nike's management's bet on celebrities marketing. These athlete celebrities including Michael Jordan and Tiger Woods had introduced and placed Nike and its "swoosh" logo into people's mind worldwide. •Strategy planning on relationship with major customers is also another factor contributing to its success.

2.In recent years, Nike has moved strongly to develop markets for running shoes in the Far East, particularly in China. Discuss how Nike might go about stimulating such underdeveloped markets.

•As the world is getting smaller now, many sport events are broadcasted globally. This leads to a more effective and efficiency way of advertising internationally. •Nike's logos on athletes' uniform, signs, stadiums and televisions have attacked consumers at their subliminal conscious. The "swoosh" then comes to consumers' minds quickly when they are in a process of shopping for athletic goods. •The market size of Chinese plus other Asians is tremendous and these people are affected by these international advertisements by Nike. Athlete footwear market in Asia has not been saturated and fully developed yet, compared to those in America and Europe. •Most of Nike's productions are based in Asian countries; therefore there will be less cost in transportation, which creates an opportunity for a more flexible and competitive pricing method. •Some Chinese and Asians athletes have enter...

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