In the modes of development of "to the comma", one notes two great phases: - A phase of strong internal growth of 1972 to 2003. In 2003, the internal organization of Nike seems to be optimal. The leaders then decided to start a phase of external growth per horizontal integration of competitors. That will make it possible to integrate competitors and to decrease the competing intensity..
From 1972 to 2003, Nike is growing. Business is booming. The brand is now in a phase where it must develop internally. That is to say, optimize the work force within the company. Be organized to lose as little money as possible.
In 2003, Nike launched a takeover bid for Converse 300 euros. This new strategy is in line with the choice of Knight to reduce costs. But it also reflects a willingness to engage in a market where Puma was successfully launched in early 2000, the market for sports shoes "to wear every day."
Nike have opted for a strategy of diversification, this then allows the brand to be present in an area where it was almost absent.
It should be noted that Nike will definitely launch other takeover bids in the 2 or 3 years due to the acquisition of Reebok by Adidas. Nike must respond to remain world number one.
Traditionally, Nike has a culture of "management of creativity." That is to say that the managers allow employees an important role in innovation and creativity in their work. The organization tends to be a systemic organization, that is to say no line hierarchy like traditional organizations such as Adidas.
Building on the success of this method, Nike continues to develop again and again. In addition, the brand cares for the moment to buy businesses (Converse in 2003) based on the same management style. This is a force that can not be ignored. Indeed, Nike does not change the working habits of its employees as is required to do so since the Adidas takeover of Reebok in 2006. This kind of management by Nike can be called "the American management."
If it is a point where Nike is strong and very present, it is the field of communication. It can be said that Nike is the world's No. 1 in any industry involved with communication and advertising. It is the same for its internal communication. Communication is very strong within the company. It is very easy because of the systemic organization of the company. It is much easier to communicate directly with an employee directly rather than through two or three intermediaries to circulate information.
Nike has a great center of research and development. This center is the heart of Nike's strategy since its inception. Indeed, it is in the center that footwear, textiles and accessories are created offering innovations both from a technical point and from that of the aesthetic point of view.
Competition is very strong between the various players in the sportswear market. Every company is looking to position themselves in the best manner possible. Nike is in the front leading since the Adidas Reebok is owned by Adidas.
Tags: study of Nike, Converse, strategic analyzes , marketing communication,
[...] The relocation of manufacturing (textiles and footwear) to Asian countries represents a major political issue for the 21st century. d. Technological developments: ¬Increased importance of product design and technological innovations related to performance as well as comfort. ¬The world of sport has worked increasingly with research and technological or scientific ergonomics and work with new materials (e.g. carbon). e. Environmental and social factors: ¬Development of sports activities: Sports practice now tends to be a way to talk (be healthy, be more "beautiful") more than a way to seek performance or competition; ¬Emergence of the street-wear market is in conjunction with an urban sport practices (e.g., street-ball, sports, multiplication stages of city).These practitioners are looking for a great deal of design in their clothes with the goal of social recognition through them. [...]
[...] Results in 2005 and 2006 (ended May 31) dollars AC: Between 2005 and 2006, the CA increased dramatically. This confirmed the trends of previous years. Net income: The net income rose sharply. This also confirmed the trends of previous years. This increase is partially explained by the economies of scale achieved continually by Nike (Roughly: To produce 10 T-shirt costs less per unit than producing only because the fixed costs per unit of output declines). Evolution of the company's shares: http://www.boursier.com/vals/US/US6541061031-graphique-historique-nike.html b. [...]
[...] Differentiation is therefore based on two factors: product innovation and innovation on the services associated with the product. - Innovative products We can say that 50 to 60% of the products sold by Nike have innovation as a unique feature. These innovations are the result of the work of the Research and Development department of Nike. There are also innovations in 90% of the shoes sold by Nike. The innovations are small to medium differences in the quantities of textiles, and a few are related to accessories. [...]
[...] For Nike, a concentric diversification strategy will therefore involve buying brands to expand the business portfolio in the sportswear segment, and thus reinforce its leading position. It is also about creating a balanced range of products in response to customer needs. Firstly, here is a brief presentation of the four brands including a concentric diversification strategy: - Hurley This brand is the branch of the streetwear and beachwear business portfolio of the Nike Group. California sells this brand of clothing which is related to the beach, and the fun of skateboarding and surfing without necessarily including the notion of sports performance in its products. [...]
[...] - Innovative and active communication The differentiation strategy of Nike is revealed in the mode of communication. Indeed, Nike was the precursor of the development of advertising including sporting action combined with a musical pattern, often from an emerging style of music (Hip Hop, Percussion . In addition, Nike relies on its many sponsored sports for innovation. Though we see sports inventing technical moves in commercials every 6 months to one year for virtually all brands, Nike was the precursor of this advertising technique. [...]
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