Nike operates in the footwear and apparel industries, being one of the most successful competitors. In 2019, the company’s revenues increased by seven percent and reached o $39.1 billion (“2019 annual report,” 2020). Nike is present across geographies and categories, which makes its performance more comprehensive and location-specific. Its’ business-level strategy is based on a winning long-term perspective that implies making consumer experience more personal and faster. To achieve the above goal, the company introduced a revolutionary Triple Double strategy that fuels the Consumer Direct Offense, consisting of speed, innovation, and direct client connections. At the same time, keener analytics and product line differentiation are put at the core of the company. These strategies have already shown effectiveness as it can be seen from the immediate return on investments.
As for the corporate-level strategy, Nike focuses on such competitive advantage as delivering innovation to all the customers, from ordinary people to athletes. For instance, the company was regarded as number one in North America for sports bras. There are more than 90 styles in combination, which are designed for sportswear, training, and running (“2019 annual report,” 2020). Accordingly, the company applies a diversification strategy to distinguish among the rivals. Speaking of the major changes, it should be noted that Nike started greater investments in digital customer experience, reshaping its products and selling them online, which connects customers and the company due to building closer and more personalized relationships. This change can be considered as the opportunity in terms of the SWOT analysis, while diversification and customer approach are the key strengths. The highly competitive environment presents the main threat since there are such rivals as Adidas, New Balance, Reebok, Under Armor, et cetera. The customers’ price sensitivity and potential Nike’s price increases compose the weakness.
Reference
2019 annual report.(2020). Web.