Simply put, Nike's strengths are its size and recognition. It is a competitive brand and has spread itself well across international markets. It's the story of how a small Oregon business venture was started up with the help of cost effective trainers from Japan to become an instant international venture and how that popularity spread amongst athletes, reaching popularity amongst Olympic competitors and professional tennis players within 10 years.
With this rise in popularity, it was clear that Nike was becoming a brand of choice for younger consumers. Their new product was aiding the pursuit of individualism teenagers and young adults have, and with accurate marketing targeting the company managed to get in on the rising popularity of extreme sports.
Aside this, the cost effectiveness of Nike's products gained them their popularity, akin to the rise of Converse. Now both companies have quite high prices on some products, but it's a case of premium pricing; make a product a high price and some consumers will believe that means the item is of a better quality. The simple fact is that Nike is one of the biggest sports brands for a reason; they make quality products. As a result Nike has the largest market share in the athletic footwear and apparel industry.
Other strengths are Nike's Board of Directors featuring both management directors and independents. This combination means external experience comes into play, and gives another frame of reference for the company's market responses and direction.
Nike, for all its successes and inevitable strengths, isn't untouchable though. It specifically focuses on athletic products, whereas rival Adidas is seen as a cooler, more fashionable brand. Nike products are, undoubtedly, great for their athletic purposes, but for all their practicality lack that aesthetic aspect in a lot of cases.
Nike also lacks retail stores, and its products usually have to be ordered online or are stocked - in moderate supply in other stores. Its board of directors, for all their marketing know-how, have an average age of around 60, and the company suffered bad publicity as a result of cheap labour in third world countries.
With this rise in popularity, it was clear that Nike was becoming a brand of choice for younger consumers. Their new product was aiding the pursuit of individualism teenagers and young adults have, and with accurate marketing targeting the company managed to get in on the rising popularity of extreme sports.
Aside this, the cost effectiveness of Nike's products gained them their popularity, akin to the rise of Converse. Now both companies have quite high prices on some products, but it's a case of premium pricing; make a product a high price and some consumers will believe that means the item is of a better quality. The simple fact is that Nike is one of the biggest sports brands for a reason; they make quality products. As a result Nike has the largest market share in the athletic footwear and apparel industry.
Other strengths are Nike's Board of Directors featuring both management directors and independents. This combination means external experience comes into play, and gives another frame of reference for the company's market responses and direction.
Nike, for all its successes and inevitable strengths, isn't untouchable though. It specifically focuses on athletic products, whereas rival Adidas is seen as a cooler, more fashionable brand. Nike products are, undoubtedly, great for their athletic purposes, but for all their practicality lack that aesthetic aspect in a lot of cases.
Nike also lacks retail stores, and its products usually have to be ordered online or are stocked - in moderate supply in other stores. Its board of directors, for all their marketing know-how, have an average age of around 60, and the company suffered bad publicity as a result of cheap labour in third world countries.
