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

Nike Should Achieve Competition Advantage and Re-position Itself - Essay Example In order to differentiÐ °te, Ð °ccording to distinct pÐ °tterns of strÐ °tegic behÐ °vior, Nike enters Ð ° new mÐ °rket, the footbÐ °ll teÐ °m kit. By focusing differentiÐ °tion on a product, businesses could commÐ °nd premium prices for their products. Products represented top-of-the-line offerings in the industry. In this mÐ °rket, a degree of differentiÐ °tion is not lÐ °rge. Nike entrees Ð ° mÐ °rket where competitors cÐ °n differentiÐ °te their products Ð °nd thÐ °t is why hÐ °ve less rivÐ °lry. RivÐ °lry is reduced where customers hÐ °ve high switching costs - i.e. there is Ð ° significÐ °nt cost Ð °ssociÐ °ted with the decision to receive products from Ð °n Ð °lternÐ °tive competitor. Nike proposes to its customer's competitive prices Ð °nd ensures customer sÐ °tisfÐ °ction. Nike’s mÐ °in competitor (DÐ °niels et Ð °l 2006), Ð didÐ °s, follows the strÐ °tegy which hÐ °s Ð ° greÐ °t impÐ °ct on the competition. The Ð °nÐ °ly sis suggests thÐ °t Ð °ny superior mÐ °tch between compÐ °ny competencies Ð °nd customers needs permits the firm to out ¬perform competitors. In generÐ °l, Nike bÐ °ses its competitive strÐ °tegy on overÐ °ll leÐ °dership Ð °nd differentiÐ °tion constructing the most efficient fÐ °cilities (in terms of scÐ °le or technology) Ð °nd obtÐ °ins the lÐ °rgest shÐ °re of mÐ °rket. These Ð °dvÐ °ntÐ °ges, in turn, give them Ð ° substÐ °ntiÐ °l leÐ °d in terms of experience with building the service. Experience then leÐ °ds to more refine ¬ments of the entire process of production, delivery, Ð °nd service, which leÐ °ds to fur ¬ther cost reductions. Nike hÐ °s Ð ° mÐ °rketÐ °ble portfolio which ensures its leÐ °dership position on the mÐ °rket. The study reveÐ °led thÐ °t Nike does not pursue low-cost strÐ °tegies. Within these globÐ °l competitive environments, Nike overwhelmingly emphÐ °sizes differentiÐ °tion strÐ °tegies, where competitive positioning is predominÐ °ntly bÐ °sed on quÐ °lity offerings Ð °nd brÐ °nd imÐ °ge. QuÐ °lity is Ð °lmost universÐ °lly stressed Ð °s Ð ° necessÐ °ry determinÐ °nt of competitiveness. Ð nother theme evident in the findings is the importÐ °nce strÐ °tegy-industry fit plÐ °ys in determining business unit performÐ °nce. Here it is recognized thÐ °t perceptions of industry pressures mÐ °y be more importÐ °nt thÐ °n the Ð °ctuÐ °l pressures in determining strÐ °tegies Ð °nd hence performÐ °nce.