Nike Inc. wasestablished in the 1960s.
Today, Nike is one of the major players in the industryfor sport shoes, and clothing. According to the generic strategies, the genericstrategy defines how can a company reach and preserves itscompetitiveness. The company’s growth strategy can show that the company are focusingon making innovative change to the business. In order for Nike to keep its positionand advantage in the industry, the company must make sure that its strategies arealways well matched to the present business environments.
The strategies thatare used by Nike Inc.’s is the cost leadership strategy and the differentiationgeneric strategy. For the cost leadership strategy, Nike cuts production costs to offer consumersa lower price for all of their products. To compete with Adidas, this costleadership strategy assisted the company gain back its competitiveness. Fordifferentiation strategy, Nike Inc. keeps creating inimitable products for theirconsumers.
The company mixes special cutting edge designs for their shoes. Boththe cost leadership strategy and the differentiation strategies can help thecompany to improve as a whole. The goal of cost leadership strategy is to helpthe company to gain its competitiveness from present trends and lessen the costs.
Moreover, the goals for differentiation strategy is to increase the company’sprofit from shoes. Even though thecompany is trying to make changes to improve themselves, there are still someissues that can hurt them. The first issue would be the changes of the newlifestyle, such as the consumers are becoming more health and fitness conscious.That means Nike Inc. have to reposition themselves in the industry. Another issueis that the products might go out of style. The company needs to follow the trendas close as possible.
Also, Nike needs to focus more on appealing the womenconsumers, since their purchasing power is increasing, and they tend to spendmore time and budget for shopping than men. In addition, they need to beware ofother strong competitors that are selling similar sports clothing to targetwomen.