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Nike: Strengthen the Firm’s Business Design Report

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Nike’s organizational initiatives to strengthen the firm’s business design have been superior. The firm has constantly searched for the right balance between its creative and business sides, heavily relying on new innovations in managerial and financial disciplines to drive its growth. Contrary to the past, the firm’s top management has developed ability in managing the creative process, thus bringing it to the bottom line. The company’s move to sponsor athletics across the globe has worked positively to the firm’s success. Global sports marketing, for example, signing up to become an official US Olympic sponsor in 4 years in Beijing and the move in soccer that show the signing of top players as endorsers has been very resourceful in the company’s success. These have given the firm a global face making customers across the globe seek their products.

Embracing modern technology through the use of computer systems (e.g. in getting the right number of sneakers to various regions in the world in a quick manner) has been a strong move in improving the firm’s competitiveness. With the current dynamism in the world of business, sales promotion has now adopted a new face (Schutz, 2000). Marketers at Nike are practicing sales promotion using the latest computer technology with most successful firms promoting their products online. This has enabled Nike to communicate with a good number of people all over the world within the shortest time possible. The company has been “rejigging” sales hence increased production and profitability.

The company’s well organized management team has seen its ability to manage its brands, such as hockey skate, more efficiently thus gaining an advantage over its competitors. This has enabled Nike to add to its range of brands a well calculated financial gain that has achieved the investors confidence. Acquisitions has seen the firm acquire more market power, source of cost reduction as a result of the large economies of scale enjoyed, enhancement on revenue, and changing capital requirements (Alan, 2000).

The move by Knight of coming up with a new management structure was in the right direction since it was meant to solve the firm’s weaknesses. Introduction of the matrix structure where Nike’s headquarters determines the products to push and how to do it, (though the regional managers are allowed to make some contribution or modification of the same) have really worked for the company. Diversification in brands has helped the firm in lessening its dependence on sleek shoes, thus helping the company turn in a more consistent performance. The firm has been able to build its empire through transforming the design and technology of its high performance sports gear into high fashion, consequently expanding its customer base. The idea of cutting costs through outsourcing daycare, security and janitorial services is a noble one

Segmentation, Targeting and Positioning (STP) of Nike Inc


Nike has managed to divide its market into diverse groups of consumers with related needs. On market segmentation, the company has successfully studied new markets, thus leveraging the scarce resources. This has been achieved through market partitioning with the aim of choosing one or more segments which the firm has targeted via specific marketing –mixes – development adapting to specific market needs. The company has managed to select those segments in which it is well suited to serve through holding competitive advantages as compared to its competitors in these segments (Frank, 1998). As a result, Nike has managed to reduce the adaptation costs thus gaining a niche of its own. Through market segmentation, Nike has made possible the provision of high quality products to its clientele through establishing a market mix that focuses on the specific concerns and needs of the chosen segment. In its STP strategies, the firm has applied mass customization where it has manufactured individually designed products on a large scale. The firm is also practicing concentrated marketing whereby it selects one segment, for instance, the streets and designs products mainly for this segment. Other strategies include individual marketing, where the company has been offering products and marketing mix to individual consumers, among others. Through market segmentation, the company ensures that the elements of the marketing mix are intended to meet definite needs of diverse customer groups


Nike is also seen to have applied target marketing satisfactorily. Through target marketing the firm has managed to point out and profile different groups of buyers who could need separate marketing mixes or products, for example, ‘the realization that millions of kids in the world play casual pickup soccer games in the street have seen the company develop the shoe especially for them’ (Stanley, 2006).


Correct product positioning has made a noteworthy difference in the success of Nike’s marketing campaign. The company’s efforts to influence customers views of their products comparative to the opinions of competing products have been very fruitful, a thing that has led to increased sales volume. In market positioning, Nike appears to make good progress since after target market selection, the firm appears to have devised a well developed positioning objectives that are developed into a detailed marketing mix (Cravens & Piercy, 2009).


Alan, J. (2000), Corporate Takeovers: Causes and Consequences. Chicago: University of Chicago Press.

Cravens, D. & Piercy, N. (2009), Strategic Marketing, 9th edn. Boston. McGraw-Hill Irwin.

Frank V. (1998): Concurrent Marketing, Boston, Havard Business Scholl Press.

Schutz A. (2000) Sales Promotion Essentials, New York, McGraw-Hill.

Stanley, H.(2006), “Inside the Coup at Nike, “Business Week, February 6, 2006, 34-37.

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