Nike Should Achieve Competition Advantage and Re-position Itself Essay - 1

Nike Should Achieve Competition Advantage and Re-position Itself - Essay ExampleIn order to differentite, ccording to distinct ptterns of strtegic behvior, Nike enters new mrket, the footbll tem kit. By focusing differentition on a product, callinges could commnd bounteousness prices for their products. Products represented top-of-the-line offerings in the industry. In this mrket, a degree of differentition is not lrge. Nike entrees mrket where competitors cn differentite their products nd tht is why hve less rivlry. Rivlry is reduced where customers hve high switching costs - i.e. there is significnt cost ssocited with the decision to receive products from n lterntive competitor. Nike proposes to its customers competitive prices nd ensures customer stisfction. Nikes min competitor (Dniels et l 2006), dids, follows the strtegy which hs gret impct on the competition. The nlysis suggests tht ny superior mtch between compny competencies nd customers needs permits the firm to out p erpetrate competitors. In generl, Nike bses its competitive strtegy on overll ledership nd differentition constructing the most efficient fcilities (in terms of scle or technology) nd obtins the lrgest shre of mrket. These dvntges, in turn, give them substntil led in terms of image with building the service. Experience then leds to more refinements of the entire process of production, delivery, nd service, which leds to further cost reductions. Nike hs mrketble portfolio which ensures its ledership position on the mrket. The study reveled tht Nike does not pursue low-cost strtegies. Within these clodl competitive environments, Nike overwhelmingly emphsizes differentition strtegies, where competitive positioning is predominntly bsed on qulity offerings nd brnd imge. Qulity is lmost universlly stressed s necessry determinnt of competitiveness. nother theme evident in the findings is the importnce strtegy-industry fit plys in determining business unit performnce. Here it is recogn ized tht perceptions of industry pressures my be more importnt thn the ctul pressures in determining strtegies nd hence performnce.