Threats to Nike and Potential Strategies
The footwear field of Nikes organization will be the largest and most lucrative therefore it is imperative Nike concentrate on the innovation plus promotion of these products in this sector. The store sector is very value sensitive. For this cause Nike must ensure they are producing products simply because cheaply as possible with out compromising quality. Because Nike pas cher sell primarily to retailers this is an ever before more important factor as Nike does have that own retailer (Nike town) and enormous retailers Nike offer too put companies below pressure to create products cheaply to improve margins. “ Product development offers Nike pas cher many opportunites.
” (Marketing Teacher). Even though Nike believes they are a sports brand, several consumers of the Coleman products do not partake in sport. This shows that Nike is not only a new sports brand but is usually now considered a great fashion brand too. This particular means there are new in order to create innovating products to try and target the trend market. Nike has applied various celebrities to promote products which has, to some degree, made Nike the trend setter as people copy the stars. This is a new great way to market products and capitalizing on this particular new, potentially huge market in fashion footwear can promote new opportunities within the sector.
Coleman could also further their worldwide brand dominance by simply expanding their services to new countries. China and India are both companies that are expanding quickly so the increase within income for these 2 economies could be potential to promote products towards the wealthy Indian or China companies. As Nike trade internationally they are prone to changes within the worldwide markets. This can include different exchange rates so charges and margins are not as stable because they could be. This means Nike must assess its trading markets and products especially concerning price, regularly to keep competitive.
Most of Nikes products are made abroad to make them cheaper, however, many additional companies including Nike’ s top competitors have completed the same in order to compete with Nike’ s inexpensive production costs. This features made the footwear industry very price sensitive in addition to so price competitiveness will be now more important than previously. In the following diagram it shows the drop of the average price of footwear in the UNITED KINGDOM from 2002-07. This demonstrates the importance of reducing costs as Nike no more have a sufficient competing advantage in this perception.