Generic Strategies

Now, I want to proceed my work which I get from GOALS.

Updating your blog: Generic Strategies

 

BROAD COST-LEADERSHIP
FOCUSED COST-LEADERSHIP
BROAD DIFFERENTIATION	NIKE	A differentiation strategy is appropriate where the target customer segment is not price-sensitive, the market is competitive or saturated, customers have very specific needs which are possibly under-served, and the firm has unique resources and capabilities which enable it to satisfy these needs in ways that are difficult to copy.
FOCUSED DIFFERENTIATION

Performance

From the early day, Nike has learnt the consumers’ need by listening to the need of athletes, sharing their true passion for running. In doing so, Nike has created a reputation as a provider of high quality running shoes designed especially for athlete. Also, high-tech image has always been associated with Nike products.

Innovation

The Nike brands always associate with innovation. For example, in 1987, Nike developed an innovative new cushioning technology that was use with running shoes. In 1988, Nike introduced “Air” technology and it fast created a big advantage over its competitors. Today, innovation always associate with Nike products and it is still strength of Nike.

Product name associates with athlete name:

Air Jordan is a good example for this concept. Nike has been successful in creating relevance among product name, athlete name, the brand, and “Air” technology.

Global Brand with memorable logo

 97% Awareness and recognition for Nike brand and logo contribute substantially to the brand image and brand equity.

Good effort in aerobics and fashion segment

In order to compete with Reebok in the US market, Nike had adjusted its marketing strategy toward female group who have tendency of fashion-conscious in aerobic market in the 1980s.

Effective campaigns: The “Revolution in Motion” and “Just Do It”

The Revolution campaign was a powerful brand statement and a massive handshake from Nike to the customers. The campaign successfully communicates to a wide range of people about product technology, Nike’s soul and a deep.

Nike is delving further into the technology sector. On Tuesday the company introduced its new version of FuelBand, a wristband computer. Wristband computers log a user’s physical activity, which allows analysis. There is competition in the wristband computer market, mainly from devices like Jawbone and Fitbit. Nike is trying to differentiate its product by adding bells and whistles. The new FuelBand will remind users to get up and walk around after periods of inactivity. The FuelBand also has methods of measuring activities such as biking or yoga – activities that were difficult to track beforehand. Nike is also trying to create a type of social network with the product. The more activity a user does, the more ‘fuel points’ they earn.

Nike will also gain an advantage from its worldwide brand recognition. Jawbone and Fitbit simply do not have the exposure that Nike has accumulated. In fact, Apple announced that its new iPhone will have sensors allowing people to keep track of ‘fuel points.’ This integration into Apple technology will give Nike even more exposure. But the mobile device exposure stops there: Nike said on Tuesday that it has no plans to make a Nike app for Android. It is interesting to note that the Apple chief executive officer, Tim Cook, is on the Nike board of directors.

That all, thank you.

Assalamualaikum.