Nike's Generic Strategy

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2.0 Nike’s Generic Strategy Nike has been named as the most valuable apparel brand in the world (Forbes, 2017); offering product priced ranging from $50 sportswear to $720 HyperAdapt 1.0 self-lacing sneakers (Green, 2017). The well-known sportswear brand featuring the trend of athleisure (Friedman, 2015); is pursuing differentiation strategy in the generic strategies that proposed by Michael Porter (Porter, 2008). Five distinctive aspects of Nike’s differentiation strategy include the brand, reliability, features, and convenience are further discussed. 2.1 Brand Nike has been ranked as the 16th Most Valuable Brands in the world, with $29.6B brand values, increased by 8% from the previous year (Forbes, 2017). While the Nike further reports…show more content…
Studies has proved that the Nike brand inherent high level of reliability, contributed by several factors, such as quality, community engagement (relevancy to consumer’s life), and high company efforts and commitment (Jung, et al., 2014); as well as established high level of emotional connection with the consumer that lead to brand loyalty (Putbrese, 2015). Consumer perceive higher quality and trust level from these professional sportsperson and expertise when they were endorsing Nike’s product (Chang, et al., 2014) The continuous product innovation of Nike further strengthen its reliability, via creative and unique design, keeping themselves up to date and satisfying market demand (Choi, et al., 2015). Reliability also concerned with the quality of the product, where Nike ensured that there are operator participation in quality control and problem-solving for continuous improvement. Moreover, consumer also perceived brand engaged in sustainable as more strongly associated with brand trust. Nike has created the reliability toward sustainable practices through its proactive initiatives today, despite once was perceived as an unethical sweatshop (Park & Kim,…show more content…
Nike, increased their focus on Direct-to-Customer channels to provide convenience to the customer, while creating closer engagement with them (Nike, 2017a); as well as giving them more control over the strategy (Soni, 2016); and collecting customer data to deliver personalized experiences (Hopwood, 2016). The company has total of 384 stores across the US, and 758 stores in other parts of the world (Nike, 2017a). They also offered online store, which accounted for 4% of their total sales in 2015, and it is expected to increase over years (Brohan, 2015). This online platform also provide the ease of access to information, where customer can basically access to all product and corporate information about the company (Gopalan & Kohtamäki, 2017). The ease of information access does not limited to the product and corporate information, but also their sustainability data, including their supplier list (Nike Inc, 2017); as well as sustainability initiatives and reports (Nike, 2016); providing transparency in their business practices (Frauenheim, 2016). On the other hand, the Nike’s convenience also include their ability to offer variety of sports product, with up-to-date trend and fashion (Mellery-Pratt, 2015); giving the consumer the one-stop shopping
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