Discussion 1.

2 Nike Strategy

Nike’s strategy appears to be well matched with its industry and competitive conditions. The

sports apparel industry is very competitive thereby attracting a range of players. To ensure

that the company remains competitive, it always reviews its generic and intensive growth

strategies to ensure that they match the current business conditions in the market (Gregory,

2017). The company does not deal with a single line of sports apparel. It provides multiple

lines of sports apparel a fact that ensures that the company remains competitive in the market.

Thus, the presence of the company in providing almost every sports apparel ensures that Nike

Inc. can compete competitively.

The competitive strategy that Nike is pursuing is product differentiation. Through this

strategy, the company provides unique products in the market that are different from those of

the rival companies in terms of quality and other features. Through product differentiation,

the company is able to maximize on its profit margins especially when new sports apparel is

released to the market (Gregory, 2017). The products appear unique because of the cutting-

edge technologies used in product development. It is this product differentiation strategy that

makes Nike enjoy global presence with a broad customer base.

The tests of a winning strategy that Nike’s strategy pass is include the goodness of fit test and

the competitive advantage test. The strategy passes the goodness of fit test because it matches

the company and competitive conditions. The company properly analyzes the internal and

external environment thereby making use of its strengths to outdo the rival companies. At the

same time, Nike uses the competitive advantage test as the strategies like differentiation

enables it to enjoy sustainable competitive advantage. This makes the company enjoy an

upper hand in the market compared to the other players in the sports apparel industry

globally.
References

Gregory, L. (2017). Nike Inc. Generic Strategy & Intensive Growth Strategies. Panmore

Institute. Retrieved from http://panmore.com/nike-inc-generic-strategy-intensive-growth-

strategies