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Nike Business Info

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2. Increasing competition in developing economies
Amidst heavy competition to be a market leader in developing economies, there are quite a few issues to be noted.
a. Losing market share in China – Li Ning. It is worth noting that Nike does not have a Chinese online website store to facilitate customers to come online and learn/buy Nike’s products.
b. Price sensitivity – Developing markets are generally price sensitive markets. Nike’s premium and high quality brand image doesn’t sync with the expectations of the customer. In other words, the differentiation strategy might not bring as good results as it had brought in the USA.

3. Significant reliance on IT and sophistication in managing supply chains.
Nike is heavily dependent on information technology systems across our supply chain, including product design, production, forecasting, ordering, manufacturing, transportation, sales, and distribution. Nike’s ability to effectively manage and maintain our because the product design and innovation forms the backbone of the company.

Nike success
1. The key reasons for the success of Nike are associated with its global brand promotion. Due to its extensive advertising campaigns the Nike’s brand is known in almost every household worldwide.
2. Nike (now, called the unofficial sponsor!) has generated the most buzz online in the lead up to the World Cup. Much greater than Adidas, it’s arch-rival and official sponsor. Coca Cola, Sony, Visa and other FIFA partners are lagging far behind.

3. Nike shoes and other accessories have also become the favorite fashion products for teenagers.

4. Nike is known around the world for being one of the iconic brands. It was recently ranked as the world’s 31st most valuable brand in terms of its brand value – USD10.8 billion – by the annual Business Week’s global top 100 brand survey New from Nike the Slingshot

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