Nike Strategic Plan
Definition of the Problem
How can Nike continue to increase their sales and profitability, not only here in the U.S. but around the world? Nike also needs to improve their public image as well as their customer service to continue to be competitive in the apparel industry.
Possible Action Alternatives
1) Continue expansion into global markets where competitors have been successful. There are huge opportunities for Nike to grow across multiple dimensions in terms of international expansion. Nike should take advantage of promoting its brand overseas, beginning with the opening of several stores in the European market.
Advantages
• Expansion into foreign markets means that sales will be toward people who have not previously had access to this very “American” brand or perhaps some people who may not even know about Nike.
• By replicating the successful model Nike has already established here in the U.S. in Europe, the company will be able to significantly increase sales and profit margin.
Disadvantages
• The company may not be immediately successful in international markets where competitor brands may already be well-established.
• Expansion is a costly endeavor, especially when doing so internationally. Since many people may be unfamiliar with Nike, a great deal more money will have to be spent on marketing.
2) Develop customer loyalty by focusing on improving customer service. The success of Nike could be improved in many regards by simply improving the customer’s shopping experience, whether they are shopping in-store or online. Improvements in customer service/assistance would significantly increase brand loyalty, therefore customer service policies should be developed and implemented company-wide.
Advantages
• Providing a pleasant shopping experience to customers improves “word of mouth” advertising, thereby reducing the costs to market Nike merchandise.
• Customer loyalty to the Nike brand is strengthened when the shopper feels
How can Nike continue to increase their sales and profitability, not only here in the U.S. but around the world? Nike also needs to improve their public image as well as their customer service to continue to be competitive in the apparel industry.
Possible Action Alternatives
1) Continue expansion into global markets where competitors have been successful. There are huge opportunities for Nike to grow across multiple dimensions in terms of international expansion. Nike should take advantage of promoting its brand overseas, beginning with the opening of several stores in the European market.
Advantages
• Expansion into foreign markets means that sales will be toward people who have not previously had access to this very “American” brand or perhaps some people who may not even know about Nike.
• By replicating the successful model Nike has already established here in the U.S. in Europe, the company will be able to significantly increase sales and profit margin.
Disadvantages
• The company may not be immediately successful in international markets where competitor brands may already be well-established.
• Expansion is a costly endeavor, especially when doing so internationally. Since many people may be unfamiliar with Nike, a great deal more money will have to be spent on marketing.
2) Develop customer loyalty by focusing on improving customer service. The success of Nike could be improved in many regards by simply improving the customer’s shopping experience, whether they are shopping in-store or online. Improvements in customer service/assistance would significantly increase brand loyalty, therefore customer service policies should be developed and implemented company-wide.
Advantages
• Providing a pleasant shopping experience to customers improves “word of mouth” advertising, thereby reducing the costs to market Nike merchandise.
• Customer loyalty to the Nike brand is strengthened when the shopper feels