Strategic Marketing Management
Is Nike a market-oriented company?
Before 1998, Nike gained market share on the strength of name brand and word of mouth networking. The company was not in tune with the wants and needs of consumers. During a meeting, in which managers were discussing ethical issues of factory workers overseas, Nike converted their approach to a Market -Oriented Company. Their strategy is to be a premium-brand by performing extensive research and testing to develop new technologies while selling well-designed and expensive products. Nike utilizes their capabilities to match their customer's values. They now focus on products in nontraditional sports and have allotted resources to this initiative to ensure customer the needs are met. An automatic replenishment system has been put in place to fulfill demand.
Define and describe the product markets of interest to Nike's management, indicating how well the firm's distinctive capabilities match customer's value requirements in each market segment?
Non-traditional sports are a product market Nike is using its capabilities to drive market share. Sports included in this market segment are skateboarding, skiing, surfing, and other numerous extreme sports. They use their research and testing strengths to develop products that a distinct from the competition. The Hurley brand is utilized to capture market share for surfing products. Nike continues to utilize their name brand, design and management insights, and efficiencies of scale capabilities to gain share in the shoe and apparel markets in China, India, and Russia. All offer enormously growth opportunities. Nike has used its "Air Technology" capability for Cole Haan, one of their subsidiaries. Cole Hann manufactures footwear and accessories for a more fashion minded consumer. Design strengths are used to gain share in the sport...