NIKES BUSINESS-LEVEL STRATEGIES (page 142-143) The case describes the strategy followed by Beaverton, Oregon-based Nike, Inc. worlds largest manufacturer of athletic gear. Nike was founded over thirty years ago by Bill Bowerman and Phil Knight. It sold over $12 billion worth of shoes in the $35 billion athletic footwear and apparel industries in 2004. Nikes business model has always been based on two functional strategies to innovate state-of-the-art athletic shoes and then to publicize the quality of shoes through dramatic guerilla marketing. In 1998, when its sales began to fall, Phil Knight changed the strategy to expand into making shoes for many more sports than just track and basketball. It also began purchasing other footwear companies that extended or complemented its product lines e.g. Converse, Hurley International, and Official Starter. It also diversified into making athletic apparel, to apply its skills in marketing in that segment. CASE DISCUSSION QUESTIONS 1. What business level strategies is Nike pursuing? Give 2 specific new examples of products, services?,,etc. of how Nike is implementing this strategy today? 2. How have Nikes business-level strategies changed the nature of industry competition? Please list at least 2 and explain
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