Competition Challenges Facing Nike Research Assignment (Essay Sample)

Nike, Inc. Competition Strategies
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Nike, Inc. is the largest multinational company that deals with manufacturing, designing and marketing sports equipment and apparel. The company has several competition strategies that have resulted in its large market share. For the last few years, its performance has been improving as a result of 2015 Global strategy to reach everyone in the world. The company made a revenue of $25.3 billion in the year 2013. Some of the competition strategies include the following. First, Nike Company markets its products under its own brands such as Nike Golf among others. Second, Nike uses advertisement through media to sell its product. Third, it sponsors various international events such as Olympics with an aim of selling its products. Lastly, Nike, Inc. makes quality and affordable products that meet the consumer’s taste and preference. As a result, it can withstand competition from its major competitors such as Adidas. CITATION Wet90 \l 1033 (Wet Feet Press, 1990)
However, some its competition strategies such as advertisement consume a significant figure of the company’s revenue. For instance, in the fiscal year 2013, total advertisement and promotion costs amounted to $2.7 billion which is an equivalent of 11% of the total sales. High advertisement cost is a threat to any company since it reduces the net income. More so, Nike signs lengthy contracts with sports stars and this strategy has been successful as i...