Case 2 One World S Recognizable Slogans Brand Logos Swoosh Wouldn T Think Nike Called Powe Q35927711

CASE #2 With one of the world’s most recognizable slogans Just Do It) and brand logos (the swoosh), you wouldn’t think that Nike has been called the ‘, most powerful person n ports- would have to worry about the competition. However, in the though he’s never played pro sports or owned a pro sports team athletic apparel industry where consumer tastes are fickle and What hes done, though, is rewrite the rules of sports market They’ve Got Game Another thing Nike understands wel is marketing. Knight the intensity of rivalry high, even Nike needs effective competi ing. When he signed a young basketball player by the name of tive strategies Michael Jordan, an endorsement relationship began that even Nike, the company, reflects the brash confidence of its remains the gold standard. And Nike continues to go after founder and board chairperson, Phil Knight. He still believes, the new sports geniuses. For instance, Nike consistently beats today controversial Olympic ads once rivals to sign top athletes to endorsement contracts. And you don’t win siver. You lose gold.” With that type can’t discuss Nike’s marketing prowess without mentioning the company’s legendary ads. Nike has always taken chances in its advertising by sounding off on social and political issues in sports Knight says he knows that he risks offending people but believes the publicity and notoriety are worth it. CEO Mark Parker says making major changes at the retail leve as one of his company’s most wonder that its shoes are consistently top of attitude, it’s no sellers and that Nike is the innovator and industry leader as the world’s number of the U.S. athletic footwear market How does Nike the game one athletic apparel company with 40 percent that the com pany is rstands well is the power of a competi- He says, “We’re grabbing the opportunity to take Nike and our consumers have experiences mobile.” In addition, the com- nd track coach at the pany acquired Umbro, one of the world’s great football brands. One thing Nike tive spirit, which continues to be a guiding force in the way the company does business. This competitive spirit, instilled by late Bill Bowerman, Knight’s mentor a University of Oregon, has characterized the company’s culture industry to someplace n the that are physical and digital and Not only is the company on the cutting edge in its market (then called Blue Ribbon ing, but it continues to take risks in its products. It’s focusing on more action markets such as skateboarding, snowboarding. and surfing. And it’s developed a new collection of casual and the company can exploit its brand mains to be seen. But one thing is ke between Knight and Bowerman Sports) began w as they decided to import cheap, high-tech Japanese “Tiger” shoes to challenge Adidas, the industry leader. Even then, Knight sporty street apparel. Whether s not afraid to go after someone, even the industry leader. power in these new markets re is competitive spirit influences strategic actions in other for sure… this company’s got game! areas. For instance, when Foot Locker (one of Nike’s biggest retailers), upset by Nike’s hard-nosed marketing tactics, trimmed Discussion Questions and slashed prices, Nike struck back by cutting shipments 1. Describe Nike’s competitive strategy using Miles and Snow framework and Porter’s framework. Explain each choice to the company on some of its top sellers. The move had seri- ous consequences (Nike’s U.S. sales fell 5 percent and its stock price plummeted), but it also brought Foot Locker back to the bargaining table. Later, an analyst said, “Nike knew its actions were going to have a negative impact, but they did it anyway” because they knew they’d prevail at the end. Even the company’s name reflects this competitive spirit: Nike is the name of the 2. What competitive advantage(s) do you think Nike has? Have 3. Do Nike’s functional strategies support its competitive 4. What do you think Nike has to do to maintain its strong its resources, capabilities, or core competencies contributed to its competitive advantage? Explain strategy? Explain competitive position? Greek goddess of victory Show transcribed image text