Nike Goes Green, Case Study Example

What are the pros, cons, and risks associated with Nike’s core marketing strategy?

Obviously, Nike attempts to meet ever-shifting standards of modern-day market strategy. It becomes apparent that the abovementioned American multinational corporation actively responds to up-to-date market requirements in order to remain of the dominating companies within the area manufacturing shoes and apparels. It is worth saying that Nike occurs as the company aimed at adjusting the marketing models; moreover, Nike Inc. is focused on meeting the requirements of their customers from the perspective of adjusting the mix of current product marketing proposal. Furthermore, the company proves to meet modern-day market requirements via, for example, creating “…a sewing machine that speeds up assembly time, which saves electricity.” (Reena & Helm, 2009) Apart from the aforementioned pros associated with Nike’s core marketing strategy, one cannot but encounter the fact that the company is constantly involved in designing new products and, consequently, impacting sports culture through numerous marketing approaches (Ewers & Smart, 2004).

Concerning the cons of Nike’s core marketing strategy, it is worth making mention that the company’s marketing strategies bring a number of inappropriate implications. The thing is that among the negative implications, one can emphasize such as, for instance, high cost that Nike incurred, impact of spokesperson, and, finally a lot of rivals.

Regarding the risks of Nike’s core marketing strategy, one should take into account the fact that the company undergoes many risks, since the core marketing strategy is likely to entail both internal as well as external strained circumstances. Inevitably, the risks will surely have a negative impact on the company’s further development; Nike will hardly escape the problems in respect of deterioration of market share, and brand image. The last but not the least is that Nike is also likely to collide with worsening of customer loyalty.

If you were Adidas, how would you compete with Nike?

If I were Adidas, I would definitely distinguish some sort of “global” scope of manufacturing awesome football shoes and could expand the marketing strategy so as to emphasize my “daily/for each one” use for the products offered. One should understand that the company should establish “the cost of world-beating performance” (Slone, 2004).Evidently, I would attempt to implement this project via creating a widely-acknowledged brand image grounded on the predominantly high quality, new approach to product-producing mechanism that famous athletes consider to be up-to-date. It is important to admit that for a successful company “…the customer can’t be an afterthought.” (Slone, 2004); and, consequently, the company’s management team has to be focused on appealing to their potential clients.

Apparently, I would also be aimed at rebranding the company’s image, since this is the only way to overcoming the competitive market of manufacturing shoes and apparels. For instance, it might a great idea to design a premium brand but focus it on young adults, females and other categories of people targeted on purchasing stylish shoes. Moreover, I would also make efforts in order to compete with Nike Inc. using the concept of drawing attention to large sporting contests. For example, in case the team wins, I would notify the audience about the company’s shoes that the sportsmen used. In my view, Adidas is likely to outperform Nike, since the abovementioned ideas that I consider as quire appropriate can enhance Adidas’ recognition in the market. Analyzing the possible ways to compete with Nike, I would also make mention of the principle of being concentrated on emerging markets. For instance, the markets in Latin America can indisputably offer the company substantial leverage over the competitors. Inevitably, Adidas is likely to obtain appreciable ground over its competitors in new markets in case the company first attempts to overcome the issue of competition by creating negotiations with regional shoes and apparel producers aiming to oversee local firms’ competitive benefits. At last, it is also worth saying that designing a point of distinction for Adidas occurs as a key to long-term preference.

References

Ewers, J., Smart, T. (2004). “A Designer Swooshes In,” U.S. News & World Report, p.12.

Reena J., Helm, B. (2009). “Nike Goes Green,Very Quietly,” BusinessWeek.

Stone, S. E. (2004). “Leading a Supply Chain Turnaround,” Harvard Business Review 82, no. 10, pp. 114–121.