Now, I want to proceed my work which I get from GOALS.
Updating your blog: Generic Strategies
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BROAD COST-LEADERSHIP
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FOCUSED COST-LEADERSHIP
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BROAD DIFFERENTIATION
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NIKE
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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.
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FOCUSED DIFFERENTIATION
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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.
