This document discusses the power of suppliers and the firm's environment in the case of Nike. It also explores the key challenges and opportunities for Nike in the global market, along with strategies to convert these opportunities. The document provides insights into the marketing and strategy of Nike.
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Running Head: MARKETING AND STRATEGY nike Marketing and strategy Question & Answers Student Name [Pick the date]
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MARKETING AND STRATEGY1 Power of suppliers In the case of Nike, availability of resources is the mean by which suppliers can impact the business of this organization. In addition power of suppliers are usually weak in case of Nike becausethereareexternalforceswhichrestrictthepowerofsupplierbyofferinghigh availability of materials, availability of large number of supplier in the market along with the moderatepopulationofindividualsuppliers(PanamoreInstitute,2017).Thisbusiness environment in which the population of suppliers is more provide the company an opportunity to switch the cost easily which forms a protective layer around Nike company from the power of suppliers. Firms environment At present changing trend in marketing has really impacted the business of many organizations on global platform. But when it comes to Nike, changing trend has very little impact on this organization because high-quality products of Nike has created such an impression on global market that sports footwear are generally connected to the Nike brand automatically (Huang, Zhang & Yunwei, 2008). In addition, Nike was very successful in targeting the female audience on global platform and has formed a very strong customer base in the sports market worldwide. Every nation of the world is now connecting with the fitness trend and hence demand for fitness products such as footwear directly provides an opportunity for this company to expand its business. In addition, Developed nation are usually considered in rich countries in the world and hence the purchasing power of customer will be always higher as compared to other developing countries which provides the competitive advantage for Nike over other brands due to their high- quality products. Key challenge and opportunities for Nike Major key challenges for Nike on global business platform is that sports footwear industry has become one of the profitable industry in the world and therefore companies from all over the world are entering into the same market in which Nike is operating (Businessinsider, 2016). As a result of this, the profit margin in the market has started splitting among various companies which are actually impacting the profit margin share of this organization. In addition, innovative in technology is allowing other companies to create a perception that their products are more deserving than Nike through their various marketing strategies. At the same time Global market is also offering various opportunities to Nike by offering them a digital platform like e-commerce by which this company is able to increase its customer reach (Business today, 2019). In addition, fitness trend on global level has started growing very fast because people are becoming more aware of their health. It has been seen that there is a huge demand for fitness related products in world which is offering a great business opportunity for Nike.
MARKETING AND STRATEGY2 Strategy to convert this opportunity In this situation, Nike can make use of digital marketing strategy in which they must use all the social media tools like Facebook, Instagram, YouTube and so on and connect their product with fitness market due to their huge network connection in the world.
MARKETING AND STRATEGY3 References Business today (2019)The Swoosh of Creativity[online]. Available from: https://www.businesstoday.in/magazine/lbs-case-study/nike-marketing-strategies-global-brand/ story/207237.html[Accessed 30/3/19]. Businessinsider (2016)Nike is facing unprecedented headwinds[online]. Available from: https://www.businessinsider.in/Nike-is-facing-unprecedented-headwinds/articleshow/ 53053406.cms [Accessed 30/3/19]. Huang, Z., Zhang, X., & Yunwei, Z. H. U. (2008) The role of clustering in rural industrialization: A case study of the footwear industry in Wenzhou.China Economic Review,19(3), 409-420. Panamore institute .(2017)Five force analysis[online]. Available from: http://panmore.com/nike-inc-five-forces-analysis-porters-model[Accessed 30/3/19].