Ikea Product Life Cycle

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Nike’s Business Level Strategy |
Case Study Assignment #2 |
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Andreea Mosailov |
11/11/2011 |

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Case study assignment # 2
Nike’s Business Level Strategies, P 142/3

  1. What business level Strategies is Nike pursuing?
          One of the strategies utilized by Nike in the past was the focused strategy; the company concentrated on producing basketball and track shoes but after its sales began to fall, Nike realized that targeting one small market segment is not enough in expanding its market share so the company started to create new lines of shoes for golf, tennis, soccer, rollerblading, cricket etc.
        In the process of increasing its market power, Nike acquired a series of companies like Cole Haan, a very successful Chicago dress shoemaker, Comverse - a company concentrated on retro-style design, Hurley International and Bauer through Horizontal Integration. All these companies substantially increased Nike’s profit, eliminated some of its competitors and expanded its presence in the sportswear industry. For a companies like Nike that has not diversified beyond its core business corporate and business strategies are inseparable.
        The differentiation strategy is achieved by producing innovative and high quality sport shoes for the average individuals or professional athletes. Through its continuous innovation Nike is proofing that it is the leader in research and development in the sportswear industry; its shoes are not only superior quality, have unique features but also make a fashion statement which is a necessary part of today’s sport lifestyle. Nike creates its competitive advantage using a high end technology to produce the famous Nike Air, Lunar Glide or Nike +.
          Nike also follows effective marketing and advertising process in its business strategy. With the help of advertising, the company has created a great demand for its products. Nike mainly uses celebrities athletes like Michael Jordan, Serena...