Nike Marketing Strategy

In: Business and Management

Submitted By onizukai
Words 7441
Pages 30
Description of marketing strategies applied by Nike Air Force
4.1 Challenges Forcing Nike to Focus More on Marketing
Sportswear is defined primarily as apparel and footwear made for sports participation, though is now also includes casual clothes worn by people for daily activities (E. Ko, C. R. Taylor, et al., 2012). The sportswear market is one of the most price-competitive markets throughout the globe. Within the UK, items of sportswear are purchased by almost 90% of people under 35 years of age, and by 76% of the population as a whole (Mintel forecasts, 2006). The international sportswear market is worth nearly 41.5 billion US dollars at the wholesale level, with Nike, Adidas, as well Reebok comprising some 14% of this market (Jeroen, 2004) and more details are shown in Figure 1. International Athletic sportswear market: Share by brand in Millions of US dollars (Source: Sporting good intelligence, 2003)
4.1.1 Overview of sportswear industry through Porter’s Five Forces analysis
Before the study regarding the marketing strategy of Nike Air Force, it is important to have a clear view of sportswear industry as a whole. Based on Porter's Five Forces model, the general characteristics of the industry can be described in the figure as follow.
Based on the analysis, it can be concluded that the sportswear industry as a whole can be characterized as competitive and easy for new entrants. Such truth has raised challenges for existed companies, such as Nike. In addition to that, customers have higher bargaining power to sportswear providers, and this pushed companies to the point where lower profit margin becomes one of the options to survive in the business. Therefore, main challenges facing Nike Air Force as a sub-brand are threats from other competitors and like products, as well as the declining profit margin, and the mentioned two perspectives will be…...

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