Nike Case Study
1. Discuss how Nike's growth can be attributed to its targeting of diverse market global segments.
In the 1960’s Nike was only making running shoes. At this point in time not many people knew of Nike or the Nike swoosh. In order to increase brand awareness, they started paying athletes to wear their shoes. However, very soon Nike learnt that in order to be a global brand they needed to appeal to different market segments, not just athletes. Hence, they then decided to tap more markets. In order to d so, they discovered 3 very distinctive market segments that they could attract.
The highest on the pyramid were the Ultimate/Performance Athletes. These included big names in the fields of running sports. They are the …show more content…
Factor Conditions: Nike being a manufacturing industry requires only the basic factors, like raw material, infrastructure and cheap unskilled labor. As these are easily available in third world countries, majority of Nike’s factories are located there. However, activities like designing and research and development are done in the home country.
Demand conditions: After having established a strong brand name and large market share in it’s home country, Nike expanded to international markets. Sports is a universal activity and every country has some form of sports in their culture, which is played with great passion. Nike takes advantage of the huge market for sports products all over the world by using economies of scale.
Related and supporting industries: One of the chief factors for Nike’s international competitiveness is the related and supporting industries. Sports is a thriving business and popular entertainment for people all over the world. International sports competitions and events greatly aid Nike in its business. We can see from the case, that Nike gained recognition by entering into partnerships with sports celebrities from different fields (Tiger woods, Ronaldo, Michael Jordan), sponsoring soccer teams (Brazil) and focusing on sporting events like the 1992 Barcelona Olympics and 1994 world cup. Most importantly,