Case studies are an important learning strategy in business classes as they provide an opportunity for you to critically analyze events that have taken place in real-life businesses. This develops you

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Introduction

This case study will examine the industry in which Nike resides and how it has been doing over the last 5 years while analyzing the pros, cons, and risks associated with Nike's core marketing strategy and how they managed to develop a strong customer relationship with their target market. In addition, I will name the three top competitors of Nike and decide what is it about their company, brand, and product development that allows them to be competitive in the industry. Finally understanding competitors and what recommendations are the next steps for these competitors. Because of these recommendations, how should Nike combat these competitors' accomplishments to stay successful in such a competitive market?

How the Industry has been Doing the Last 5 Years

Healthcare Financial Management (2016), noted how many people, especially middle aged individuals are running as a past time, for exercise, and for the fulfilling their competitive need through marathons as well as improving personal times and abilities. This new desire to be and stay healthy has helped increase athletic apparel and athletic shoes sales and allowed Nike and its competitors a new niche to target in future ads. This includes knowing when to launch new products and when something is going to be a fad versus something that will become an everyday normal activity. For example, years ago, yoga was something yuppie's and bored homemakers did to pass the time however; Nike noted that this would not be a passing fad and invested in apparel and gear something that turned out to be another great decision.

Lee (2016) noted that social media has influenced the growth of many companies, especially those in the same industry as Nike because social media can reach so many in so little time versus the traditional commercials and billboards. In a world that has DVR boxes and the ability to skip commercials many companies are finding that those traditional methods need to be reinforced with using Twitter, Facebook, Instagram and other social media methods. Additionally, social media sets a precedent within social circles, groups, and even families as they show off their morning walk/jog/run using their Nike+ (plus). So when looking over the growth or shrinkage of the company's in the same industry as Nike, I would say over the last 5 years there has been so much advancement in marketing, communication, customer service needs, and product that sales and customer social responsibility has increased, making the industry's foundation stronger and more current.

Nike's Core Marketing Strategy (Pros, Cons & Risks)

Kotler & Keller (2016) noted that Nike's marketing strategy is innovative, creative, and risky so when they get that mix just right the outcome is a successful growth of the company both internally and externally while increasing brand recognition and customer satisfaction. The pros to this style marketing strategy include brand recognition such as the famous Nike Swoosh, which some feel stands for the Greek Goddess Nike that was winged and could fly or some think it is for the sound of speed of a runner or the sound of the basketball going through the net. Regardless of your interpretation of the swoosh the meaning is the same, brand recognition and makes you think about goals, effort, physically fit, and being healthy. Therefore, one of the things Nike has accomplished is inspiring people to think about themselves, their health, and what they can accomplish, especially when you add the momentum given through the Just Do It campaign that inspired several generations to accomplish their goals and dreams.

Some of the cons and risks associated with this style of marketing strategy would come from when the mix of innovative, creative, and risky isn't just right and the company receives negative publicity which decreases customer loyalty, can damage the brand recognition and negatively impact the companies triple bottom line. This was the case when Nike was under scrutiny for having products made in sweat shops in underprivileged countries. Transform Manufacturing (2017), noted that Nike really took to heart the needs of the people in these countries, the way they were being negatively viewed here in the States and effectively made some policy changes that would increase the code of ethics being used within these factories. Additionally they have chosen to be more transparent with the company, especially where these factories are concerned.

Reebok, Adidas & Puma - Nike's Competitor's

My top three competitor picks for Nike based on sales, customer satisfaction, and brand recognition would include Reebok, Adidas, and Puma and each of them bring something different to the table when considering how to carve out a niche for their company. All of these companies share similar advantages and disadvantages where customers and products are concerned, however how they handle these are what sets them slightly apart. Competitively they each want to provide customers with a stylish, affordable, comfortable product that is current yet can become timeless.

Adidas is competitively the closest to Nike where revenue, brand recognition, and customer service is concerned partially by offering both apparel and footwear just as Nike does, however it also increases its foothold by having ties with Reebok which is also well branded. Reebok is a subsidiary of Adidas, which makes it a bit stronger where innovation is concerned as well as helping with meeting customer needs; however, one of the most notable things associated with the Reebok brand is the attention to comfort, and detail while thinking outside of the box with such things as the pump or specialty shoes. Puma would be my third pick with good revenue and superior brand recognition based on that logo that is remembered and loved by everyone, however this is no surprise as the founder of Puma was actually the brother of the founder of Adidas according to Akhtar (2013).

Next Steps for Combating Competitors

Timing and good business decisions allow each of these companies to stay at the top in their industry, therefore the steps needed to combat competitors and keep your standing in revenue, customer loyalty, brand recognition, and product development need to be based around the triple bottom line. McShane & Von Glinow (2013), noted the triple bottom line is a way of making sure that your company is taking care of the business from every angle including company profits, how the company handles environmental issues, and with customers. This can be accomplished by having a strategic plan for the company, which addresses things such as having a strong mission statement, and value statement that represents the company and how it plans to conduct business.

Next, each company should have a SWOT Analysis (Strength, Weakness, Opportunities, and Threats that allows them to see where the company is thriving, where it needs work, and where they could take a risk to help move the company forward. Having a SWOT Analysis also allows a company to understand their growth both internally and externally as well as being able to determine how knowledge sharing can help increase productivity in the company while saving money.

References

Clawson, D., & Clawson, M. A. (1999). What has happened to the US Labor Movement? Union Decline and Renewal. Annual Review of Sociology, 15(2), 8-19. Retrieved from http://search.ebscohost.com.libraryresources.columbiasouthern.edu/login.aspx?direct=true&db=edsbig&AN=edsbig.A64263003&site=eds-live&scope=site

Dundon, T., & Gollan, P. J. (2007). Re-conceptualizing voice in the non-union workplace. International Journal of Human Resource Management, 18(7), 1182–1198. https://doi-org.libraryresources.columbiasouthern.edu/10.1080/09585190701391925

Holley, W.H., Jennings, K.M., & Wolters, R.S. (2012). The labor relations process. Mason,

OH: South-Western Cengage Learning.

National Labor Relations Board. (n.d.) Who are we? Retrieved from https://www.nlrb.gov/about-nlrb/who-we-are