The Previous 5 Years Proceedings of Nike

Nike has by far dominated various sectors such as footwear, sports, and lifestyle in recent years. This milestone has been made courtesy of their ever-expanding line of merchandise deliveries. Nike Company has been making revenues of about 50% market share in the United States on sports swoosh and footwear and 31% market share globally in 2014 (Kotler& Keller, 2016). Since then, Nike has been progressively dominating the sports market within the United States and globally. The company has acquired an excellent long-term strategy that involves penetrating and dominating new markets in products such as skateboards,wristwatches and swimming caps among other products (Kotler & Keller, 2016). Similarly, both local and global markets have been dominated by Nike Companydue to its contribution and innovation in the running category. For instance, the company has developed a revolutionary running application known as Nike+ which has enhanced emotional connection with its consumers. Nike+ was later expanded to focus on other critical areas such as basketball through Nike+ Basketball and exercise through Nike+ Fuel band and Nike+ Kinect (Kotler & Keller, 2016). The application indicates the company’s willingness to venture into technology to outcompete and win hearts if its consumers.

Risks, Cons, and Pros of Nike’s

Nike Company’s strategy involves inventing and dominating the various market niches. The more the market niche, the more management expenses and these manymanagement costs and inventory costs are unnecessary, and they reduce the revenues of Nike. Similarly, in case ofa fault in any single product, it could transfer the poor reputation to the rest of the products despite their condition. The advantages of Nike’s strategy in penetrating the various market niches whichpose its consumers with the opportunity to choose from a variety of its merchandise (Kotler & Keller, 2016).

Developing a Strong Customer Relationship

Customer relationship has been formed through supporting the society against cancer through sponsoring ‘Livestrong’ campaign (Kotler & Keller, 2016). Nike has developed a revolutionary running application known as Nike+ which has enhanced emotional connection with its consumers. Nike+ was later expanded to focus on other critical areas such as basketball through Nike+ Basketball and exercise through Nike+ Fuel band and Nike+ Kinect. The application indicates the company’s willingness to venture into technology to outcompete and win hearts if its consumers.The company has as well created customer satisfaction through posing a variety of choices on its clients (Kotler & Keller, 2016).

The Top Three Competitors of Nike

The top competitors of Nike include Umbro, Adidas, and Air Jordan.

Competitors’ Advantages/Disadvantages

Adidas has mastered the art of sponsoring major events such as the international Olympics to showcase its reputation through advertisement. Both Umbro and Adidas were aggressive to their market niche hence making it unbearable for their competitors to penetrate and coup.

The Next Steps for these Competitors

The competitors should adopt technology related products to help coup with Nike. The competitors should as well pose a lot of products to the customer so that they have varieties to choose from. The three competitors should reduce their product price while improving the quality of gain a competitive edge over Nike.

The Next Steps for Nike to Combat these Competitors

The Nike Company should continue with its strategies especially the one for penetrating new market niche.The company should also venture into electronic products such as fridges to keep satisfying customers with a wide variety of products.Nike should also offer incentives and offers to its customers to beckon them more.

Reference

Kotler, P., & Keller, K.  (2016). Marketing Management, VitalSource for Columbia Southern University.[VitalSource]. Retrieved from

https://online.vitalsource.com/#/books/9781323591512/cfi/6/44!/4@0.00:0

 
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