Nike to the generic strategies, the generic strategy defines

Nike Inc. was
established in the 1960s. Today, Nike is one of the major players in the industry
for sport shoes, and clothing. Nike Inc.’s strategy highlights the variety of
their product. According to the generic strategies, the generic strategy defines how
can a company reach and preserves its competitiveness. To ensure its advantage,
Nike Inc.’s generic
strategy is appropriate for its different product lines. The similar intensive
strategies grow Nike’s global shoes, sport gears, and clothing business.
Nike’s intensive growth strategy can show the company’s focus on innovation to change
the business. In order for Nike to keep its position and advantage in the
industry, the company must make sure that its strategies are always well matched
to the present business environments. The strategies that are used in Nike Inc.’s is
the cost leadership generic strategy and the differentiation
generic strategy. For the cost leadership strategy, Nike reduces production costs to offer
a product at a lower selling price of their sport shoes and other sport
products. Going against Adidas, this cost leadership strategy helped the
company gain back its competitiveness. For differentiation generic strategy, Nike
Inc. keeps creating inimitable products for their consumers. The company mixes
cutting edge designs for their shoes. Both of the cost leadership strategy and the
differentiation strategies help Nike Inc. to improve its performance. The goal of
cost leadership strategy is to help the company to gain its competitiveness from
present trends and lessen the costs. Moreover, the goals for differentiation strategy
is to increase the company’s profit from shoes. Even
though the company is trying to make changes to improve themselves, there are
still some issues that can hurt them. The first issue would be the changes of the new
lifestyle, such as the consumers are becoming more health and fitness conscious.
That means Nike Inc. have to reposition themselves in the industry. Another issue
is that the products might go out of style. The company needs to follow the trend
as close as possible. Also, Nike needs to focus more on appealing the women
consumers, since their purchasing power is increasing, and they tend to spend
more for shopping and other emotional purposes than men. In addition, they need
to beware of other strong competitors that are selling similar sports clothing
to target women.