In the BCG matrix, the brand of Nike is Star
Nike became the leading brand in sport’s shoes and apparel industry because of its excellent quality products and broad customer range alongside exceptional marketing strategy. Nike’s brand quality, superior customer focus, and marketing strategy have been the strategic business unit (SBU) for the company. The company has a more focused marketing strategy because the company uses the psychographic segmentation variables when targeting its customers. The company has employed the use of various campaigns to capture the market potential of varying segments. Nike’s SBU has specific targets. The company has a differentiated targeting strategy to help it in acquiring more customers. The company is also receiving footwear from different factories across the globe, following its capability of outsourcing for markets. Its strong brand portfolio is the reason why several manufacturers are ready to be associated with the company. In the BCG matrix, the brand of Nike is Star, while question marks are Converse, Hurley, and Jordan because they are found in limited countries.
Nike’s market share continues to grow in the area of clothing and apparel, and this makes the group to be categorized as a star. Nike has sustained its growth strategy properly, and this has hindered it from turning into a cash cow. The market share is at 1.9%, and start items have received 16.77% market growth by 2011. In has introduced different types of footwear in the market like Nike SHOX, which has contributed to its market growth. Nike market has significantly grown, and by 2019 it was at 27.4%. The increase in the market indicates that Nike does not have to invest in footwear to generate revenues. The company should focus its growth into a cash cow that has a significant market share to help it to grow its other sectors.
Cash cow usually has more market share as opposed to market growth, and Nike footwear is considered to operating as a cash cow for a decade. The footwear serves as a cash cow because its revenues and market shares are usually high in the sports industry. Nike revenue increased significantly, such that between 2017 and 2018, there was a 4% increase. Therefore the rise in revenue indicates that the company does not require a considerable investment to ensure it keeps its high revenue. Maintaining a high income will need the company to invest in businesses like apparel to help in advertisements.
Within the Nike firm, businesses selling sports equipment are categorized as a question mark. Question marks are considered as company problem child since there market growths are high as opposed to market share. In Nike Company question mark includes Converse, Jordan, and Hurley because they manufacture Nike’s apparel and accessories. The converse is disappearing slowly as many athletes are opting to use competitor’s products. In the case of Hurley and Jordan, they have the potential of growing and increasing sales if effective strategies are put in place.
Dog in Nike business is made up of the variance existing between assigned and real market share also currency gained, and losses from foreign countries since they are associated with capital investment. Nike footwear has failed to be popular in foreign countries, and no sign of growth is considered as a dog. For example, Nike Skateboarding can be categorized as a dog because it never got any popularity and support in the skateboard community.
