Nike is an American multinational company
Nike is an American multinational company, with its headquarters located in Beaverton, Oregon, USA. It specializes in designing, developing, manufacturing, marketing, and selling of sports and lifestyle, apparel, equipment and accessory products. The company operates within the Apparel and Accessories Industry. Currently, Nike is the leading manufacturer and seller of athletic apparel and shoes globally. Over the years, the company has expanded and diversified steadily to achieve a wide global market share. For instance, the company operates in 170 different countries globally, with over 1000 store outlets. Again, it has more than 76,000 workers globally. In the U.S. alone, Nike has about 392 store outlets. It offers a wide variety of fashion apparel for both men, women, and children. As of 2017, Nike dominated the U.S. sports footwear market with approximately 46% market share. Historically, Nike’s performance in the U.S. has been strong due to the large market share and customer base in the region. For instance, in 2019, the company’s sports footwear market is the U.S. was valued at about $37.5 billion, and it is forecasted to rise to nearly $ 70 billion by 2025. North America forms the largest market segment for Nike’s apparel products in the U.S market. For instance, the North American market segment accounted for about $ 10.05 billion in revenue in 2019 in the footwear sector.
Like any other company, Nike faces several challenges in its operations. Currently, the company faces stiff competition from other American firms operating in the same sector. For instance, Nike experience high competition in the American market from its major brand rival, Adidas. The company also faces competition from other key competitors, including Reebok, Puma, Fila, and Converse. The continued increase in competition results in a decline in Nike’s market share and revenue. Also, Nike faces the risk of counterfeit products. Today, many retailers and merchandisers are selling Nike counterfeit products at significantly lower prices compared to original Nike products. The low-priced counterfeits still have the Nike label; hence this may tarnish Nike image and brand. For instance, customers may feel that Nike has started producing low-quality products, leading to reduced market and sales. Again, rapid technological advancement in innovation may lead to further competitive pressure as firms invest heavily in technology and innovation to gain more competitive power. Therefore, Nike must focus on innovating rapidly. Other than challenges, Nike has several opportunities that may help to ensure enhanced performance. For instance, it has a better chance to improve its product mix by introducing new innovative apparel fashion products for both athletes and non-athletes to attract more customers. Also, the market is continuously growing due to an increased population, thus bringing a better opportunity for the expansion of Nike’s customer base. Moreover, technology and innovation offer Nike a critical opportunity to achieve highly competitive advantage through the production of high-quality, innovative products and the use of innovative marketing strategies to attract more customers.
The apparel market is one of the most dynamic and competitive sector markets. Therefore, Nike puts much focus on product differentiation to achieve sustainability and enhanced competitive advantage. For instance, Nike puts great attention to creating new technologies and innovations to ensure high-quality materials and designs for their products. Also, the products are updated continuously to reflect consumer needs and preferences, resulting in increased consumer satisfaction. Moreover, Nike focuses on ensuring proper timing for introducing their new products. It introduces the latest products at the right time when the market or the customers begin to crave for them. Another important part of Nike’s differentiation is the relationship with its customers. Over time, the company has built a strong relationship and reputation with its customers, resulting in increased loyalty. Therefore, most customers feel that Nike offers the best quality apparel fashion products, especially in the U.S. market.
Additionally, Nike offers customized products to meet its customer’s specific needs and preferences, leading to improved customer experience and satisfaction. For instance, NikeID allows customers to design and personalize their apparel fashion products such as clothes and shoes. Customers can modify the materials, colors, or eve monogram to meet their desire. The company is well-known for its tremendous and unmatchable marketing strategies, with the use of top athlete celebrities, witty commercials, ads, and the “Just Do It” slogan that perfectly matches the brand. Combining various differentiation strategies, including quality design and material, product customization, topnotch marketing strategies, and appropriate timing for the introduction of new products, gives the company a better competitive edge. Nike’s vision and success are built on continuous innovation and new technology to create and offer the best quality and fashionable apparel products. Through innovation and aggressive advertisement, the company boasts a better chance of success and survival in the future, mainly due to the creation of improved quality product designs, increased share market, and enhanced reputation and customer loyalty.