Nike: Globalizing the Sportswear Industry
Nike case
Grachya Ovsepyan
Alexander Kopenkin
2011
Nike – Globalizing the Sportswear Industry
1. Evaluate Nike’s business strategy. Does Nike have a sustainable competitive advantage?
According to the text, there are four cornerstones in Nike’s strategy: 1) Deepening its relationship with customers. There are some obvious ways of having a “deep relationship” with customers such as taking into consideration results of various enquiries or following current trends like many companies do. Nike does that, too. But apart from that it really has tight relations with its customers. For example, Nike was one of the first companies that introduced the opportunity to customize its products according to every client’s individual tastes and preferences, called “NIKEiD”. Nike also has the widest of all the three companies (adidas-Saloman and Reebok) range of products. It offers sportswear for football, soccer, tennis, basketball players, skateboarders, snowboarders and etc. and enables people to choose what is necessary for each of them. Thanks to all the abovementioned the company has millions of loyal customers all over the world, for whom Nike has become a part of a lifestyle. 2) Delivering superior, innovative products to the marketplace. A good example of how Nike does that is one of the most innovative products in the industry, if not the most one, is Nike Air Max. Sports shoes with large air cushioning unit at the heel, which is visible from the side of the midsole, were one of the Nike’s best selling units. 3) Making the company’s supply chain a competitive advantage, through operational discipline and excellence. This is probably the answer to the question whether or not Nike has a sustainable competitive advantage. The “futures” ordering program, which is the distinguishing feature of Nike (adidas-Saloman and Reebok don’t have an analog), allows retailers to order goods in advance at a set period and at a fixed price, so the outlets will
Grachya Ovsepyan
Alexander Kopenkin
2011
Nike – Globalizing the Sportswear Industry
1. Evaluate Nike’s business strategy. Does Nike have a sustainable competitive advantage?
According to the text, there are four cornerstones in Nike’s strategy: 1) Deepening its relationship with customers. There are some obvious ways of having a “deep relationship” with customers such as taking into consideration results of various enquiries or following current trends like many companies do. Nike does that, too. But apart from that it really has tight relations with its customers. For example, Nike was one of the first companies that introduced the opportunity to customize its products according to every client’s individual tastes and preferences, called “NIKEiD”. Nike also has the widest of all the three companies (adidas-Saloman and Reebok) range of products. It offers sportswear for football, soccer, tennis, basketball players, skateboarders, snowboarders and etc. and enables people to choose what is necessary for each of them. Thanks to all the abovementioned the company has millions of loyal customers all over the world, for whom Nike has become a part of a lifestyle. 2) Delivering superior, innovative products to the marketplace. A good example of how Nike does that is one of the most innovative products in the industry, if not the most one, is Nike Air Max. Sports shoes with large air cushioning unit at the heel, which is visible from the side of the midsole, were one of the Nike’s best selling units. 3) Making the company’s supply chain a competitive advantage, through operational discipline and excellence. This is probably the answer to the question whether or not Nike has a sustainable competitive advantage. The “futures” ordering program, which is the distinguishing feature of Nike (adidas-Saloman and Reebok don’t have an analog), allows retailers to order goods in advance at a set period and at a fixed price, so the outlets will