Nike Nike reduces production costs to offer a product

Nike Inc. wasestablished in the 1960s. Today, it turns out to be one of the important playersin the market for shoes, and clothing. Nike Inc.’s generic strategy highlights thevariety of their product. According to Porter’s Generic Strategies, the genericstrategy defines how can a business/company reach and preserves itscompetitiveness.

Toensure its advantage, Nike Inc.’s genericstrategy fit for its varied product lines. The similar intensive strategiesgrow Nike’s global shoes, sport gears, and clothing business. Nike’sintensive growth strategy can show the company’s focus on innovation to changethe business. In order for Nike to keep its position and advantage in theindustry, the company must make sure that its strategies are always well matchedto the present business environments. The strategies that are applied in Nike’s strategyare the cost leadership generic strategy and as well asthe differentiation generic strategy. For the cost leadership generic strategy, Nikereduces production costs to offer a product at a lower selling price of theirsport shoes and other sport products.

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Going against Adidas, this costleadership strategy helped the company gain back its competitiveness. Fordifferentiation generic strategy, Nike Inc. keeps creating inimitable productsfor their consumers. The company mixes cutting edge designs for their shoes. Boththe cost leadership strategy and the differentiation strategies help Nike Inc.to improve its performance.

The goal of cost leadership strategy is to help thecompany to gain its competitiveness from present trends and lessen the costs. Moreover,the goals for differentiation strategy is to increase the company’s profit fromshoes. Even though the company is trying to makechanges to improve themselves, there are still some issues that can hurt them. Thefirst issue would be the changes of the new lifestyle, such as the consumers arebecoming more health and fitness conscious. That means Nike Inc.

have to repositionthemselves in the industry. Another issue is that the products might go out ofstyle. The company needs to follow the trend as close as possible. Also, Nikeneeds to focus more on appealing the women consumers, since their purchasingpower is increasing, and they tend to spend more for shopping and otheremotional purposes than men. In addition, they need to beware of other strongcompetitors that are selling similar sports clothing to target women.