Nike has become one of the most iconic brands and consistent performers our time. While the company is known for cutting-edge products in an era of technology & services, how has it managed to consistently convert those innovations into business growth? Nike’s sustained success lies in its ability to generate full spectrum growth opportunities using a deliberate and multi-dimensional growth strategy.
First, Nike has REFRAMED the definition of emerging markets by, not only viewing them as sources of low cost manufacturing, but also as sources of the high GDP growth and favorable demographics that create new demand. Nike has also continuously RENEWED its offerings by turning products into services and services into unique experiences with offerings such as the NIKEID product personalization service and NIKETOWN retail experiences.
Next, Nike radically changed the basis of competition by switching the industry’s traditional emphasis on product features, to a new emotional focus that emphasized the more active lifestyles that consumers aspire to. Nike then dramatically expanded its customer base by identifying unmet needs and redefining its target customer from serious athletes to also include casual athletes, aspiring athletes and fans.
Finally, Nike is in the process of REINVENTING components of its business model with innovations such as “Flyknit”, which significantly reduces input costs, manufacturing waste and labor requirements. By continuously formulating and executing a multi-dimensional growth strategy, Nike has created the conditions for generating structural competitive advantages, powerful customer value propositions and sustained business growth.
Author: Wayne A. Simmons
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