NIKE CASE STUDY based on Corporate Strategy Essay

NIKE CASE STUDY based on Corporate Strategy - Essay Example By focusing differentition on product, businesses could commnd premium prices for their products. Products represented top-of-the-line offerings in the industry. In this mrket, degree of differentition is not lrge. Nike entrees mrket where competitors cn differentite their products nd tht is why hve less rivlry. Rivlry is reduced where customers hve high switching costs - i.e. there is significnt cost ssocited with the decision to receive products from n lterntive competitor. Nike proposes to its customers competitive prices nd ensure customer stisfction. Nike's min competitor (Dniels et l 2006), dids, follows the strtegy which hs gret impct on competition. The nlysis suggests tht ny superior mtch between compny competencies nd customers needs permits the firm to outperform competitors. In generl, Nike bses its competitive strtegy on overll ledership nd differentition constructing the most efficient fcilities (in terms of scle or technology) nd obtins the lrgest shre of mrket. These dvntges, in turn, give them substntil led in terms of experience with building the service. Experience then leds to more refinements of the entire process of production, delivery, nd service, which leds to further cost reductions. Nike hs mrketble portfolio which ensures its ledership position on the mrket. The study reveled tht Nike does not pursue low-cost strtegies. Within these globl competitive environments, Nike overwhelmingly emphsizes differentition strtegies, where competitive positioning is predominntly bsed on qulity offerings nd brnd imge. Qulity is lmost universlly stressed s necessry determinnt of competitiveness. nother theme evident in the findings is the importnce strtegy-industry fit plys in determining business unit performnce. Here it is recognized tht perceptions of industry pressures my be more importnt thn the ctul pressures in determining strtegies nd hence performnce (Johnson & Scholes 2003). Question 2 In order to improve its strtegies position, Nike should chieve competition dvntge nd re-position itself. The compny cn position itself s premium brnd which proposes exceptionl qulity. While ll businesses my emphsize qulity, some my select strtegy bsed on further differentiting their offerings ccording to the qulity of the products nd services they provide. Indeed, in this study one of the dominnt competitive positioning strtegy types identified is 'high-qulity" (Johnson & Scholes 2003). Here, the emphsis on qulity permetes every ctivity long the vlue chin; qulity is clerly the overriding determinnt of competitive positioning. The exceptionl qulity is crucil for footbll tems nd the 2008 Europen Chmpionship. In this cse, qulity domintes competitive positioning nd differentites businesses in globl scle. Here, qulity is consistent with both innovtion nd speciliztion (Dniels et l 2006). Mngeril perceptions of strong pressures re evidence tht lrge number of businesses competing in globl industries mke imprecise ssessments of globl industry opportunities nd threts. It is possible to ssume tht Nike's competitors will follow cost focus strtegy nd cost differentition. dids, direct competitor of Nike, provides comprble buyer vlue but perform the ctivities less efficiently. In contorts, Nike performs the ctivities in unique wy which rises the vlue to the consumer nd thus llows them to commnd premium price - the