Nike Analysis Essay - 1774 Words

Since being founded in 1962, Nike has grown from a small fledgling shoe retailer into a world-wide corporate giant. During its first year, sales for Nike were $8000, but as of November 30th, annual sales for Nike were over 12 billion dollars. (hoover) Although Nike already dominates the sporting world, there are many opportunities for growth. According to our research, key strategic challenges facing Nike are increased competition from Adidas with their technological shoe, the Adidas One, and a potentially fatal inability to enter a new growth market such as the extreme sports market. Our recommendations to help Nike confront these challenges consist of developing a product to remain competitive with Adidas, and also an aggressive move†¦show more content†¦The Nike shoe will include a processor chip that is sold separately. By using existing research and development personnel, Nike will not only show its loyalty to employees, but its superior technological capabilities. Inst ead of purchasing a new shoe at 250 dollars, customers can purchase a replacement pair for 75 dollars and move the chip to the new pair of shoes. Although the initial cost to the consumer will be slightly higher, we see the long run cost benefit to consumers being high enough to draw away a majority of the competition ¡Ã‚ ¯s market share. In order to create this shoe, Nike must implement the following actions. To begin with, funding to research and development must be increased to ensure that the technology employed in the chips and shoes will exceed that of Adidas. Next, Nike will need to allocate a certain amount of space in each of its main production plants in order to gear up for a mass rollout of the new product. Also, the product must be tested to ensure quality and safety. Another beneficial step is to offer a limited introduction of the product to a small test market to gauge customer satisfaction. The next step is to use Nike ¡Ã‚ ¯s strength in promotion to attract a t op track star to endorse the new running shoe. Nike must use their celebrity endorsement along with an aggressive advertising campaign comprised of television, radio,Show MoreRelatedBrand Analysis : Nike And Nike1300 Words   |  6 PagesBrand Analysis: a case study of NIKE Background of Nike: Nike Inc. is an American corporation that was founded in 1971 and extended its market to the globe. It is known as one of the largest supplier for sports-related products in worldwide. The company mainly focus on selling athletic shoes, sportswear and other sports-related products. In year 2014 its brand value was valued at 19 billion, making it the most valuable brand among all sports-related business. 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