Business Level Strategy

Nike's Business Level Strategy

Nike utilizes a differentiation strategy to separate themselves from their competitors. Their apparel and equipment is not the cheapest in their industry, but is of the highest quality. Nike spends millions of dollars on R&D every year to maintain their edge on the market. Through their NikeID feature, customers can create their own cleats and clothes using whatever colors they want. They can even add their names or logos to their creations. Nike has the best athletes in the world. The reputation they have developed is critical to the success of their company. People buy Nike products because Nike is Nike. You hear Nike and you picture Michael Jordan, Derek Jeter, Tiger Woods, etc. Not even the Tiger Woods scandal or Lance Armstrong's doping situation was enough to really affect their brand loyalty in the long run. Because so much of Nike's future success is dependent on the reputation they have developed, Nike must maintain its image as the best sporting goods apparel/equipment in the the world. Nike is in in the maturity stage of the company life cycle. They have expanded into many global markets and must focus on R&D to maintain their advantage.

Nike has developed many different technologies and designs they have patented. Their original "waffle" shoe, their sporting good equipment technologies are covered by utility patets. Most of their apparel is covered by design patents. Also, their extensive marketing campaigns have resulting in many trademarks. The most famous being their swoosh, along with the "Just Do It" slogan."