Swot Analysis Of Nike s Marketing Strategy - 1543 Words

Summary Diversification is one of the key components of corporate level strategy. It not only helps companies to spread their risks but also capitalizes their strengths. One of the epitomes of applying diversification strategy and being successful in diversification is Nike, Inc. This paper discusses Nike’s diversification strategies and how the company succeeds in using it. Along with corporate level strategy, this paper also touches upon the international strategy that Nike uses. Key Tie-Ins †¢ Diversification strategy †¢ International strategy Nike Diversification Strategy Upon first glance it is not very obvious that Nike employs diversification in their overall corporate strategy. The company not only diversifies in its product line†¦show more content†¦For starters, Nike enjoys a non-equity alliance with Apple as evident in the â€Å"Nike+iPod† partnership. Innovation is at the heart of this partnership. Both companies had a similar vision, which showed high probabilities for success in new markets and increased popularity for new and existing customers. This wireless system essentially allows Nike+ footwear to talk with iPods, which provides a unique and unmatched personal running or workout experience. It is safe to say that both Nike and Apple saw this strategic alliance as a way to exploit potential synergies Although the main revenue of the company comes from footwear products (which are over 60% through years), their additional products dominated a huge amount of the total sales of the company – especially apparel – which contributed nearly 30% to the company’s revenue. Source: company reports; eMarketer calculations https://retail-index.emarketer.com/company/data/54a3012c0596151820f9305e/54a301830596151820f93803/lfy/false/nike-by-product-category In each product line, Nike also invested a huge amount of money on RD to make products more sustainable and innovative. Nike products become more valuable not only in design and style, but also in their advanced quality which attracts the standard buyer in addition to professional athletes. Some of the most recently products of the company’s innovation is the introduction of Nike Air shoes which have two interdependent compressed air bagsShow MoreRelatedBusiness- How Key Elements of Marketting Achieve Success1105 Words   |  5 Pages2009). Marketing is a key element in the success of any business. The elements of marketing incorporate: situational analysis, market objectives, the target market and marketing strategies. Most marketing plans begin with an executive summary, providing a brief summary of the current issues affecting a business. It is crucial in identifying key features of a marketing plan. Following the executive summary a business finds out its current position in the market using a situational analysis. 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