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Running Head: NIKE'S CASE STUDY 1

Nike’s Technology

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Instructor
NIKE'S CASE STUDY 2

Evaluate Nike using the competitive forces and value chain models.

Nike is not only the producer of clothing and shoe manufacture, but it keeps on thriving in the

market and so has still held its reputation high. One of the significant reasons that keep it at the

top of its ability to continuously come up with an array of innovative products and services, sets

in a huge gap between its fellow competitors. Additionally, it not only deals with one type of

product design, but also practices product differentiation, which makes it easier to win customer

confidence in purchasing various products. Nike FuelBand has new competitors for the activity

tracker, such as Fitbit and Jawbone, which sets out it in the competition. However, it retains its

competitive advantage over the rest as it is has a point system mechanism generated to function

in consolidation with the Nike Fuel gadget. Thus, the point systems keep customers flooded

inside the Nike+ ecosystem of trailing devices, hence becoming difficulty for the customers to

opt for other choices .

What competitive strategies are Nike pursuing? How is information technology related to

these strategies?

Nike utilizes a variety of competitive strategies to maintain its reputation and marketability. One

of the strategies applied by Nike is product differentiation. Similarly, it is also focusing on its

position within the market while still also creating more customer relations to maintain its

marketability. Information technology, in this case, is highly intertwined between the products

making them be interconnected to another, an aspect that has seen prices also fluctuates over

time. This arises from the fact that since all the products are connected, focusing on one line of a

product would be of no value as the products will not be combined, and information transfer and

data would not be allowed. Thus, the integration of technology with its products wins more

customers.
NIKE'S CASE STUDY 3

In what sense is Nike a “technology company”? Explain your answer.

In a way, Nike can be perceived as a technology company in that it mainly uses its edge

technologies in making the products more appealing as a way of enhancing their user

performance. The use of advanced technology in the modern world in supporting sports

superstars through their products also qualifies it as a technology company. On the same note, it

has a well-developed technology applied in operating shoes that utilize "super gases" engulfed in

urethane plastic to afford comfortability for the running shoes. Again, other technological

advancements integrated within the products entail the use various applications and gadgets

linked to the internet to enhance, monitor, and evaluate their performance.

How much of an edge does Nike have over its competitors? Explain your answer.

Nike has a substantial advantage over its opponents as it has a wide range of valuable and

standard applications related with its products. For instance, sportspeople more so athletes would

very much likely want to time their activity and measure their progress over time. The

Nike+sportwatch GPS records data such as localities, speed, distance and pulse rate. In keeping

track and revising on individual goals and targets. This aids Nike apps and gadgets to have the

capability of being intertwined with products. Similarly, there exists a wide range of platforms

whereby users can be able to control their fitness activities through Facebook, online programs,

coaching tips, and daily workouts. For instance, users can access the Nike+website to view all

their data, as it is typically stored in one place. Services such as Nike Fuel points are as well

accrued as collected from all other devices. Clearly, there exists no other sporting goods

manufacturer who offers such.

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