Comprehensive Analysis of Nike's New Product Development Strategy

This report provides a comprehensive analysis of Nike's New Product Development (NPD) strategy. It begins with a background of the company, tracing its evolution from Blue Ribbon Sports to a global leader. The report then delves into the factors influencing Nike's NPD, including idea generation, idea screening, feature specification, development, testing, and launch. It also examines global competition and market sustainability. The report offers strategic recommendations for Nike, such as analyzing market conditions, advancing product features, understanding customer needs, addressing competition, and improving product mix. The learning outcomes highlight the importance of innovation, technology, and competitive advantage. The analysis concludes by identifying the core NPD theory guiding Nike's approach, which includes idea generation, concept development, marketing strategy, product development, commercialization, and critiques. References from various academic journals and publications support the analysis.

QUALITY
MANAGEME
NT

Background of the Company
 Nike is a multinational
brand originated from
the United States of
America.
 Originally, Nike is known
as Blue Ribbon Sports
(BRS).
 It is headquartered in
Oregon, Portland
(Ramaswamy, 2008).

Background of the Company
 The contemporary New Product
Development Strategy (NPDS) of Nike is
aligned to facilitate the dynamic
requirements of the customer.
 Incorporation of new product facilitates
the company in gaining competitive
advantage from the market.
 Implication of latest NPDS also validate
the overall development of the
company (Anana & Nique, 2010).

Background of the Company
 The company is among the market leaders in
the sector of manufacturing, development,
sales and marketing of athletic shoe, sports
wear, sports equipments, footwear and related
accessories.
 Initially, Nike was an official distributor of its
Japanese parental branch Onitsuka Tiger
(Ramaswamy, 2008).

Factors Influencing the New
Product Development Strategy
 Idea Generation: NPDS
potentially depends on the
creation and description of new
idea for the company.
 Idea Screening: Profit and
cost analysis on the basis of
potential sales also impacts the
NPDS.
 Feature Specification:
Detailed description of
proposed product or service
facilitates the vision of NPDS
(Claessens, 2018).

Factors Influencing the
New Product Development
Strategy Development: It presents the
actual offering made by the design of
NPD.
 Testing: Testing of the proposed
idea/product/service crucially
impacts the NPDS.
 Launch: Launching of the tested
and acknowledged product is a
significant factor in promoting the
overall NPDS (Claessens, 2018).

Factors Influencing the
New Product Development
Strategy Evaluation: The overall analysis and
evaluation of the proposed strategy helps in
justifying the envisaged NPDS.
 Global Competition: It also influence the
NPDS of a company by provoking the
considerations of competency an cost
effectiveness.
 Market Sustainability: Integration of
effective practices of sustainable market
development sanction the NPDS of the
organization (Trott, 2008).

Recommendations
 Nike is recommended to crucially analyze
the existing market conditions to explore
the drawbacks and loopholes of the market.
 The company is also suggested to timely
advance things to facilitate the customers
with upgraded featured products.
 It is also advised to understand the
requisites of the target customers to
maintain the competency and customer
support in the market (Chang, 2013).

Recommendations
 Nike is further advised to specifically
address concerns such as competition,
labor relations and patent protection to
gain competitive advantage in the market.
 Collaboration with government units can
also help Nike in dealing with patent
protection issues of NPDS (Chang, 2013).

Recommendations
 The company is also recommended to
improvise the attributes of product mix
under New Product Development Strategy.
 Considerable emphasize over market
presence in developing countries will also
sustain Nike in getter advanced business
opportunities.
 Nike is further recommended to
proactively contribute in improvised
employment practices to present a brand
image in the market (Chang, 2013).

Learning Outcomes
 The assignment firmly indicate towards the fact
that innovation leads to success, which is
further justified by Nike’s invention of Self-
typing shoes.
 The literature also indicate towards the
significance of advanced technology in the
NPDS of Nike as it justifies the context of latest
product segment and profitability.
 Consideration of competitive advantage by
effective business approach helped Nike In
gaining relevant market growth (Florén,
Frishammar, Parida & Wincent, 2017).

Learning Outcomes
 Effective implementation or proposed
strategy of NPDS helped Nike in increasing
customer retention and profit.
 Pioneering implications and endeavor of
modifications facilitated Nike in dealing
with competitive business market.
 Due to strategic implications and
innovative factors, costing of Nike products
become very high, which is a crucial factor
in determining sales ratio (ADIELE, 2012).