Marketing and Strategy Report: Nike's Competitive Advantage

This report provides an analysis of Nike's marketing and strategy, examining key aspects such as the power of suppliers, the company's environment, and the challenges and opportunities it faces. The analysis highlights that Nike's power over suppliers is relatively strong due to market dynamics and the availability of alternative suppliers. The report discusses the impact of changing marketing trends on Nike, particularly the company's strong brand recognition and customer base. Key challenges include increasing competition in the sports footwear industry, while opportunities stem from the growing fitness trend and digital marketing platforms. The report suggests that Nike can leverage digital marketing strategies, specifically using social media, to connect with the fitness market and expand its customer reach. The report also references several sources to support its analysis, including reports from Business Today and Business Insider.

Running Head: MARKETING AND STRATEGY
nike
Marketing and strategy
Question & Answers
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MARKETING AND STRATEGY 1
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
because there are external forces which restrict the power of supplier by offering high
availability of materials, availability of large number of supplier in the market along with the
moderate population of individual suppliers (Panamore Institute, 2017). This business
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 STRATEGY 2
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 STRATEGY 3
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].