Nike Incorporation Part II Essay

Nike Incorporation Part II

Introduction

Nike incorporation is the world number one shoe maker; it has conquered more than 20% of the United States shoe market for athletes. The company specializes in designing and marketing various types of sports shoes. The company also deals in dresses for women, and other casual shoes. The company has managed to stay at the top due to its premium products, good pricing, better marketing methods, and being able to embraces technology to its advantage.

The main products of the company are; designing and developing quality footwear, equipments and other accessories.  The company manufactures shoes meant for men, women and kids. The company designs shoes for all fields of sports including, basketball, tennis, football, golf, cycling, baseball, hiking, volleyball, aquatic activities, wrestling and some other outdoor activities shoes. In line with this, the company also manufactures shoes kits and other accessories for certain sporting activities. As a measure to cut down on profit loss as experienced in 1984 when Nike made a loss of $2.2 million, the issue of assessing products on the market arose. Thus, a number of changes in production occurred. Nike shoes that were being manufactured were reduced by 30%.[1] Due to change in market trends, new products need to be added to cater for new demands. For example, today many people watch their weights a lot. Therefore, Nike can start manufacturing weightlifting items to fit in the current fitness movement.

Recent Changes in the main products of Nike have also been mainly based on improving quality and technology. For example, the company acquired an exclusive license to manufacture shoes using “Air” technology. The technology uses pressurized gas put in polyurethane. In addition, Nike has introduced new designs in its line of shoes for skating by manufacturing the Nike 6.0 and Nike SB shoes. Also, Nike have recently modified and introduced new cricket shoes known as Zoom Yorker, which is 30% lighter than those on the market. In a follow up, some products that seem not to be doing well have been removed on the market. Some other products that have been added to the market are jerseys for various types of sports that include football, cricket golf and other track events jerseys.

Nike has always embraced the use of technology to advance its products both in design and in marketing. Therefore in 1999, Nike using information technology, launched its products on the internet and create its website which gave customers, an opportunity to directly buy the products from the company through website. Hence digital distribution is an important aspect for the company, and the company has continued to support this by launching individual websites for certain world class players such as Tiger Woods.

For any company to stay at a competitive edge in the modern world, it has to incorporate information technology. So, in 2000 Nike learned that it has to invest in the latest information systems and logistics to improve on its products design and management. This can be supported by the fact that, recently Nike together with Apple Inc. produced the new Nike+ product that is able to monitor an athlete’s performance using a radio device put in the shoe and linked to apple’s ipod nano.[2] As in management, the efficiency has been improved as the company implemented information management system.

As mentioned earlier, Nike products are of high quality and have top performance, thus their products are always been in demand and they have continued to satisfy customers’ demands. Backed up by proper marketing strategies of good brand image, competitive pricing, and variety of products of different ranges and types, the company has continued to enjoy good sales of its products. This has enabled the company sales and profit to continue to go up and new markets have continued to be created both in the United States and abroad.

To maintain the market and be at the top Nike manufactures use the depth and breath product strategy. As noted before Nike has a wide range of shoes ranging from road running, tennis, soccer cycling and other activities. This sports wear are available in many sizes and types and also they are made for both men and women. This has ensured that no customer category is missed is missed out. For example we it has shoes in all sizes, colors and types.

It is interesting to note that, Nike did not have a direct competitor who could compete with the company’s range of products until in 80s when Reebok came along. So, compared to its competitors in terms of products depth and breadth, Nike is very far. It should be Nike had enough time to capture the market and its products have continued to be of high quality compared to its competitors. Nonetheless, competition has come up but Nike offers a wide range of products and in various categories which are better than the ones offered by its competitors. Therefore the company’s products have a greater depth and breath.

Conclusion

Nike has been able to conquer and maintain the market through proper market research and innovations which make it able to satisfy the market demands. It is apparent that for any successful company to continue being relevant it must improve it products through new technological advancement that occur. It is also certain that the use of information technology is important as it opens new markets and creates direct response from the customers which is used to know the customers’ needs and requirements.

References

Donald, K. R. (1994): Just Do It: The Nike Spirit in the Corporate World, New York: Random House, 336 p.

Holmes, S. and Christine, T. (2002): How Nike Got Its Game Back; Business Week, November 4, pp. 129-31.

[1] Donald, K R. (1994): Just Do It: The Nike Spirit in the Corporate World, New York: Random House, 336 p.

[2] Holmes, S. and Christine, T. (2002): How Nike Got Its Game Back; Business Week, November 4, pp. 129-31.