Nike Business Strategy

Problem diagnosis

Recommendations

1. To look at Toms’ strategy of improving lives, with every purchase of Toms’ product, Toms help a person in need. They donate shoes to communities in need. If Nike were to implement this kind of strategy, there will be no doubt Nike’s customer from all around the world will have a good impression on Nike organisation and the sales will definitely increase too.
2. Another strategy that Forever 21 has implemented is that having a giant billboard on top of the Forever 21 store at Times Square using AVT camera for interactive Advertising and fashion models. It attracts the crowds, especially amazes foreigners shopping on the street and makes them want to visit the store. Again, to attract customers especially for visitors to visit the Nike store, this type of strategy can be implemented too.
3. Another strategy that Adidas has made is that they limited the production and purchase of latest shoes of Adidas (eg. NMD, Yeezy etc). Therefore, the customers from some countries are unable to purchase them which undoubtedly increases their desire to own those shoes and hunt down to purchase them mostly from online shopping. This strategy also makes the products more expensive. For Nike to gain such interest from its customers and increases the prices of its products in addition, this strategy can be a good one for Nike too.
4. Another recommendation for Nike is to concentrate on creating more of a domestic feel to their products and brand. Nike has long struggled publicly with activists claiming that they operate sweat shops with unsatisfactory working conditions in foreign countries. Nike executives have adamantly denied these allegations but still a common criticism of Nike is their treatment of foreign workers. Since Nike has become so big, it can be challenging to maintain that connection with their customers.
5. Perhaps Nike should think in terms of a national branding strategy for each country that they operate in. For instance, in England, they could promote the Nike Lion, in PRC the Nike Tiger, in Japan the Nike Samurai, etc.
6. Nike currently makes shoes for all major sports, but it is lacking in broadening their assortment to more sports and activities which can make Nike gain more percentage of the market to attract more customers, especially non-athletes. For example, Reebok’s shoes for dancing.
7. The next recommendation is for Nike to build brand awareness in their new markets if they tend to pursue them, and to build awareness in some of their markets they have already.
8. Nike should adopt rapid technological innovation as its main competitors, Adidas and Puma. In public, Nike has been commented, “Long time, Nike is not changing something out of the box. Where is Nike’s new technology when Adidas comes out with ultra boost and Puma comes out with creepers?”.
9. One strategic recommendation for Nike is to examine the impact their international expansion has had on their customer loyalty and brand integrity.
10. Nike apparel and accessories makert were down -5% according to year over year growth report. Only Nike sports shoes sale persentage is growing over years. One more recommnodation is to improve Nike apparel and acceories by designs innovation depends on customers’ favor, getting surveys from most Nike user countries about price arrangement on apparel and accessories.  

Limitations

1. Imitating strategies from other brands can have a bad impression on Nike.
2. Limited production strategy can constraint the sale and decrease the customers’ brand loyality due to long waiting.
3. National branding strategy is unable to cover the world wide Nike user countries and customers’ satisfaction can be decrese.
4. Nike’s new innovation for apparels and accessories is not granted for sale increase in market and the amount of capital spent for apparels and accessories need to weigh with outcoming profit and loss amount.
5. Imitation problem will be bigger for Nike if Nike starts limited production strategy, especially in developing countries with poor legal protection for patents.

https://mtk10.wordpress.com/2012/10/23/nike-strategic-recommendation/

References

http://www.toms.com/improving-lives

https://www.alliedvision.com/en/news/detail/news/giant-billboard-on-times-square-uses-avt-camera-for-interactive-advertising.html

http://fortune.com/2016/12/14/nike-adidas-retail-future/

https://www.scribd.com/doc/125543113/Nike-Marketing-Plan

https://mtk10.wordpress.com/2012/10/23/nike-strategic-recommendation/

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