Nike

Market Expansion Grid:

It is a tool used to develop business development strategies by examining the relationship

between new and existing products, new and existing markets.

Examples:

Junaid Jamshed

Khadi

Outfitters

Pepsi

Rational Products of Nike:

Nike markets its products under its brand, as well as

Nike Golf

Nike Pro

Nike+

Air Jordan

Nike Blazers

Air Force 1

Nike Dunk

Air Max

Foamposite

Nike Skateboarding

Nike CR7

Jordan

Converse
Product Development
When the organizations decide to bring innovative products for their existing customers
through changing designs, product features or characteristics, to retain existing customers then
it means a firm is using an intensive growth plan through product development. It is the
primary growth plan for Nike. Product development deals with the innovation of the latest
goods to increase the profit income of the firm and is involved in this intensive growth plan. For
instance, the mission statement of Nike focuses on the execution of new and innovative
product features like unique and different designs of shoes. Modern techniques increase the
number of goods and keep them apart from market rivalry. Despite fluctuating buying behavior
of the consumer the value and attractiveness of new products remain the same. Therefore, the
product development strategy of Nike supports its generic competitive strategy of
differentiation

Market Penetration
When a firm uses an intensive growth plan to penetrate the market by producing the same
product in the same market and market segment but at different price levels then it is called
market penetration. It is the secondary growth plan executed by Nikes to penetrate the existing
market. This strategy helps in generating large profits on sales. For example, the market
penetration strategy of Nike is to distribute more and an extensive number of athletic shoes to
American customers. Although, due to having a leading position in the global shoe market,
penetration strategy is considered a secondary plan of Nike. The company is penetrating the
competitive market through various other manners like the cost leadership strategy of a firm
has extended its market penetration due to reasonable productivity. The major objective of this
strategy is to grow market share. Nike is selling its shoes and bags at a very low price and
customers are always attracted to the low price.

Market Development
It is the most profitable strategy of a company because it helps to expand the company's
growth by focusing on different markets and its segments. Such as, Nike is planning to open its
shoe retailing shops in Africa and the Middle East to generate more profit through sales.
Additionally, market development strategy is executed by a firm through the production of
modified and innovative products in new markets to involve in new market segments like the
production of goods and services for bodybuilders. However, the growth of a company can be
determined through a worldwide market saturation of Nike shops. It has also been observed
that intensive growth plan is playing a vital role in the financial, demographical and
geographical growth of a firm. Whereas, a generic competitive plan of differentiation supports
the company to interfere in the fresh market by producing attractive products.

Diversification
It deals with the introduction of new products and services in a new market to reduce and
recover losses. The least important growth strategy for Nike is Diversification. This plan is based
on the production of new products into new markets to endeavour business but Nike has
already executed this strategy at the beginning of the business operations like the development
of apparel and sports goods in the product Mix. In earlier times, the production of the company
was based only on sports shoes. The competitive generic plan of differentiation for Nike can be
supported by diversification.