NIKE: Company’s Positioning and Competitive Advantage (Case Study Sample)

Nike Incorporation is one of the biggest companies in the world which deals with football apparel. This case study is purposed to review some of the marketing strategies that the company utilizes to remain competitive in the industry. It reflects some of Nike’s competitive approaches that other organizations have not considered combining or using to achieve better results. This has, in turn, led to the high rate of growth, popularity, and profitability witnessed in Nike. According to Ofek and Johnson (2011), after the Vice President of Nike, Trevor Edward, confirmed the 2010 World Cup in South Africa, he urged his team to pursue a plan that would give the company a better position in the market. Later, to verify their plan in making the best out of this event, Trevor visited Nike’s campus to meet the marketing and football leadership so that they could go through the approach together. Ofek and Johnson (2011) reflect various strategies that a company can utilize to ensure that its initial plan will yield anticipated outcomes. For instance, the marketing and football leadership team had a draft that was refined with the help of an executive board before implementation. In return, Nike was able to achieve its goals and, hence, its focus on the competitive advantage and teamwork was an essential aspect of success.
Situation Analysis
Marketing strategy
Ofek and Johnson (2011) postulate that Nike's marketing strategy is comprehensive yet simple to follow. Unlike most companies in such an industry, its main approach entails engaging clients so that they can be convinced, inspired, and connected. For instance, the first strategy utilized before the 2010 World Cup was issuing new deals in the form of uniforms and boots. This was given as top-of-the-line performance offering to the world’s best players. According to Trevor Edwards, this is among the ways through which the company pursues its target customers to market products and, in turn, make a decision depending on the quality provided. Indeed, their commodities in the market play a vital role during the promotion. For instance, shoes and uniforms are defined as the “judge and jury” because they are in the form of a coded message. Also, Nike’s motivation in the industry is based on the belief that if an organization does not produce something that voluntarily compels customers to purchase it, then the team is doing business in the wrong way.
Branding Strategy
Besides polarizing geographical and social boundaries using performance offering, Ofek and Johnson (2011) have explored the branding strategies utilized by Nike. The company pursued different age groups and populaces to purchase their products. For instance, ahead of the World Cup, the marketing team organized various platforms to reach out to the target groups. This included securing a commercial platform with Wieden & Kennedy, which was the only company chosen to run television advertisements during the matches. The decision had been made by Nike’s rival, Adidas, which at the time was the only football apparel sponsor, and its management had gone further to prevent any other entertainment organization from airing the World Cup matches. Therefore, by pursuing its longtime partner, Nike would have obtained an opportunity to interact with consumers, but there was limited access. In this case, it is evident that having business allies brings an economic advantage even when competitors have established methods to lock out a company.
Unfortunately, Nike could not succeed and, hence, it had to come up with a contingency plan. Trevor Edward developed other means that could be utilized to broadcast their products, for example, through NikeFootball.com, Facebook, and YouTube. Additionally, the company had launched a web-based application which could be accessed on mobile devices by all fans. The strategy aimed at reaching youths who follow and play football. Similarly, the team collaborated with other organizations that raised awareness and provided first aid, including AIDS and relief. This provided an opportunity to showcase its social responsibilities and sustainable products during the World Cup. As a result, customers were convinced that the company’s ...