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Nike Strategic Plan

Nike Strategic Plan

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Industry Analysis

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Nike Inc operates in the clothing, athletic footwear and equipment industry. Nike’s clothing and shoes are unique and differentiated from other products offered by competitive companies. The most significant aspect of Nike’s products is the use of its unique brand name. The marketing department of Nike Company will ensure that, the brand name they choose for their sport products is captivating so as to draw consumer’s attention (McAllister, 2006).

As a result of competition in the footwear industry, the company mainly targets the youthful population who are not price sensitive. Besides, research has shown that athletes and young people spend more on sporting equipments. The company holds more than 50% of the entire market in the industry, and competitively prices its products. In comparison to other companies, Nike has performed exceptionally well in the industry posting over $19.1 billion in revenue in 2009. This is because theJordan brand is among the people’s favorite, controlling over 10.8% share in the overall U.S. shoe market (David, 2011).

The company has developed a unique brand name to become a market leader in the athletics industry. The trade mark of the Nike “Just Do It” seeks to create the sporting spirit. In September 2009, the Nike brand, marketed by Jordan, reached the $1 billion mark in annual revenue. Other sporting celebrities sponsored by Nike such Christiano Ronaldo, LeBron James and Tiger Woods are expected to hit the $1 billion mark in the next few years (David, 2011). Since it has no patents, Nike promises its customers high quality products that satisfy their needs 100%.


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Competitive Analysis

Adidas is the main competitor of Nike in the clothing, athletic footwear and equipment industry. Adidas, which uses basketball superstar Yao Ming to market its footwear; Reebok was the main sponsor of Beijing Olympics in 2008. However, the other key compeetitors include Puma, K-Swiss, Li Ling shoes and Timberland Company. According to the latest statistics, Nike is the market leader in supply of all sorts of sporting equipment and is controlling over 60% of the market (David, 2011). The main strength of Nike Company is its line of products. The Nike Company produces training, soccer, basketball, children’s shoes and casual shoes. It also produces shoes for aquatic activities, football, baseball, outdoor activities, tennis, volleyball, skateboarding, walking, wrestling, recreational activities, and athletic footwear. In addition, the company produces sport accessories and apparel such as lifestyle apparel, athletic bags and accessory items (Cummings, 2010).

Nike is regarded as the market leader due to its markets all over the world – in North and Central America, Western Europe and Japan. The company has also opened international offices in Australia, Brazil, Chile, Hong Kong, Italy, Germany, New Zealand, Netherlands, and United Kingdom to match its competition (McAllister, 2006).

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