What Have Been the Key Success Factors for Nike?
sdhjhfudh** What have been the key success factors for NIKE-?
Ans: In 1980 Nike has become number one athletic shoe company,
in the US market. The company commitment to designing innovative footwear for serious athletes helped it build a cult following among American consumers. As Nike expanding there market overseas to Europe, it found that its American style ads where seen as too aggressive, the brand image was perceived as too fashion oriented. Then Nike becomes actively involved as a sponsor for soccer youth leagues, local clubs, and national teams. The big break come in 1944, when Brazilian team the only national team for which Nike had any real sponsorship won the world cup. In 2003 overseas revenues surpassed U.S revenue for the first time. Nike also topped $10 billions in sales for the first time in that year as well. Nike introduces more than 100 of shoes style each year for 30 sports averaging one new shoe style every day of the year.
** Where is Nike vulnerable? What should it watch out for?
Ans: The organization does have to diversify range of sports products. However the income of the Nike is still heavily dependent upon share of the footwear market. This may leave it vulnerable if for any reason its market share erodes.
There is one fact that Nike advertisers need to keep in mind when using celebrity endorsements and that is to never let the celebrity become your brand. If so, you will run the risk of killing the brand no sooner has the hype around the celebrity faded.
What recommendation would you make to senior marketing executives going forward?