Nike is an American multinational corporation that is involved in designing, development, manufacturing, and marketing of footwear, apparel, and accessories. It was first started in Exeter, and has grown over the period of 30 years into a world-class facility in developing sports goods. With their research and development, they have been able to provide innovative products under the brand name of Nike. Today, Nike is considered one of the biggest brands around the world and was ranked on number 16 in terms of World’s most valuable brands around the world, according to Forbes.
Competitive Advantage is something that distinguishes the company from other competitors in the same industry. Nike has been able to shine from so many competitors in the industry because of certain factors that count as Nike’s competitive advantage. One of these factors is branding. Over the years, Nike has been able to develop and establish a very strong brand name among their target customers. Nike is considered a premium brand due to its quality and high price. Its name is recognized all over the world, even among those who have never used it, this is enough evidence to prove that its brand name is here to stay.
Another factor is the availability of customization for customers. Nike has been able to deliver the products according to the needs of the customers through which they are able to provide exclusive experience to the customers. Customers feel connected to the brand and thus maintain long-term relationships with the brand. They also maintain their Nike account that helps them customize and buy products in the future.
Another major factor is their innovation. Nike has been spending a lot on its research department and has grown and become strong because of this factor. Nike has always been a pioneer in introducing innovative products according to the needs of the customers, which makes it different from other competitors in the industry. Moreover, because of this innovation, Nike has been able to broaden its product portfolio and market a vast range of products for kids, teenagers, men, and women. This has also helped them to be flexible in this industry, and to develop according to the needs of the customers. The factor of innovation is that factor which is also a factor that most researchers have claimed that the competitors like Adidas should consider as the biggest threat that could come from Nike.
Nike, along with these factors uses the endorsement of celebrities to influence their target market and eventually sell their products. These celebrity endorsements play a huge role in the increasing revenues of Nike. And this is also something that distinguishes it from other competitors.With its growth each year, Nike has been able to stand at Number 14 in terms of Just companies, according to the Forbes List released in May, 2017.
References
Nike Explore Team Sport Research Lab. Retrieved December 23, 2017, from https://about.nike.com/pages/nike-explore-team-sport-research-lab
Nike on the Forbes Just Companies List. Retrieved December 23, 2017, from https://www.forbes.com/companies/nike/
Nike vs. Adidas: Competitive Advantage (with images, tweets) · cwinkler. Retrieved December 23, 2017, from https://storify.com/cwinkler/nike-vs-adidas-competitive-advantage