nike competitive advantage

While the U.S remains its core markets, its supply chain and distribution network is spread globally. Over time, Nike has maintained a strong supply chain and manufacturing network that has helped keep the brand popular with agility. To overpower competition, Nike’s safest bet is to design innovative products that are tailored according to the needs of athletes. Bearing in mind that customer preference changes fast, there is stiff competition among brands. And with a firm grip on the competitive advantage factors, Nike is deemed to continue leading its competitors in the manufacture of athletic wear and apparel. Here we will conduct a detailed analysis of Nike competitors. Outsourced Manufacturing Units: Nike receives footwear from more than 140 factories located in 13 countries across the globe. Nike has been able to outshine so many brands in the athletic wear industry because of the competitive advantage that it has over its rivals. NIKE Competitive Advantages Nike as a global company known worldwide that makes a large range of products for athletes including shoes and apparel as well as equipment sustained its competitive advantage through effective knowledge management. To gain the strongest competitive advantages is the major concern for Adidas, because it has to compete with giant competitors like Puma, Nike, New balance and others. Adidas … The buyers of sports footwear and hence their thinking have changed in the past decade. When markets are reaching saturation, new markets need to be identified to prevent decline in sales. Nike offers a “Shop with a Stylist” feature, the perfect way to make the most out of your store visit. Although there are now problems arising from these factories, they are switching to making their own goods, labour and political unrest causes delays in manufacturing and shipping of the goods. If the business has only one major supplier and no … Well, they JUST DID IT and are doing it. Thus it has acompetitive advantage of … This attitude of the company helps in eliminating and meeting any threat and provides a competitive advantage. Threat of substitute products. Competitive advantage is what makes an entity's products or services more desirable to customers than that of any other rival. Their secret is brand management because despite selling their products at a higher price, consumers are still willing to pay more money for its brands which are believed to be of high quality with different styles. Today Nike has a strong network of retailers in 200 countries worldwide through distributors, licensees and subsidiaries. Nike has various competitive advantages outlined below. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Innovation can be another source of competitive advantage. With well-synchronized manufacturing, retail, and distribution network, Nike can cater to demand better. Though Adidas web site is slightly more favourable in user friendly functionalities, it lags behind on Nike’s overall site appearance. We have mentioned some of the main factors that put Nike ahead of its competitors. Nike needs to manufacture and sale all its products which has gained patent before the right expires. Nike’s brands have turn out to be to be very strong as compared to others such as Reebok and Puma. The firm has product design capability, which is due to its highlyefficient integrated research laboratories. Nike has employed several methods to increase customer loyalty. The main raw materials used in NIKE footwear are rubber, plastic compounds, and foamcushioning materials, nylon, leather, canvas, and polyurethane films used for cushioningcomponents. Nike has done some restructuring to help gain competitive advantage. The company has heavily invested in design and quality and employed a greater business strategy that focuses on customer service. When required for professional use there is no substitute goods, but as a fashion item there are many other goods that could be purchased. Roots to competitive advantage: It is obvious that it wasn’t a red carpet journey for Nike. Adidas have recovered from the problems that plagued them, and have a good product mix, covering a wide range of sports. Under Armour, founded in 1996, has successfully entered the high-performance apparel industry. As an outstanding brand that prides in the highest popularity and customer loyalty in the sportswear industry, it is no doubt that customer loyalty is a unique competitive advantage that has kept Nike leading its rivals. However, surprise when reviewing its differentiation strategy it . distributors, licensees and subsidiaries innearly 200 countries. 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