Nike is one of the leaders of sport footwear essay
Nike is one of the largest sport footwear manufacturers in the world. The company holds a strong position in the market and currently Nike is one of the leaders of the world sport footwear industry. The rise of the company as the world leader dates back to the 1990s when the company has just started its international market expansion becoming a sponsor of World Cup of 1994. From that moment on, Nike conducted the aggressive international market expansion policy oriented on the fast entrance of new markets and taking the lead at the local level.
At the same time, there were several factors contributing to the overall marketing success of the company. First of all, one of the main conditions of the overall success of Nike’s marketing strategy was the focus on the company on the development and introduction of innovations. At this point, it is worth mentioning the fact that the company invested into the research and development as a strategic direction in its business development. As a result, the company has managed to introduce innovations and outpaced its major rivals taking the lead in the market. In such a situation, the major rivals of Nike, such as Adidas had to keep pace with the progress of Nike and introduce their own innovations to enhance their competitive position in the market. Today, the company continues its marketing strategy oriented on the wider introduction of innovations as the major drivers of sales of the company.
Furthermore, the company’s marketing strategy focuses on the sustainability of its products and product development (Ofek & Johnson 511). In actuality, sustainability is very important today as a part of the marketing strategy of the company because customers grow more and more concerned about their environment and minimization of the negative impact of human activities on the environment. In addition, the sustainable development of Nike makes its sport footwear more endurable and environment friendly. As a result, customers prefer safe and environment-friendly products. In such a way, Nike can take a strategic advantage over its rivals offering endurable and environment-friendly products.
Furthermore, another important trend in the development of Nike is the growing trend to outsourcing and removal of the production from the US and other well-developed countries to countries of the third world, where the production costs are cheaper due to the available resources and low costs of the labor force in the market. The move of production to developing countries allows Nike to decrease the costs of production and, therefore, the price of its products. Lower price makes products of Nike more competitive and provide customers with the possibility to purchase Nike footwear more frequently and in larger amounts (Riezebos 183). In addition such strategy brings the company considerable savings due to the lower costs of production. As a result, the company can increase its revenues and invest them into the further development of the production and international market expansion.
Finally, the company takes the strategic advantage over its rivals due to the marketing strategy applied at the moment. Nike attempts to take the leading position in the marketing conducting aggressive promotional campaign and sponsoring the major sport events, like World Cups.
Thus, at the moment, Nike is one of the leaders of sport footwear industry and it can enhance its position in the future even more.
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