What Gives Nike Its Competive Advantage?

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What Gives Nike Its Competive Advantage

In this assignment I will investigate what gives Nike its competive advantage, by this I mean the ability for Nike to attract and retain a strong customer base. All companies face fierce competion, I will examine how Nike fights in the market.

Companies try to keep their costs as low as possible, this is achieved by efficiency. If you train your workers they can become more efficient this would give you a competive advantage on price (see appendix 1). Companies try to give their product added value this can be done by for instance packaging the product so that it appeals to the customers and stands out from the crowd. A good reputation of a brand will help sell a product, if you put a well known brand on a product it will sell better than the same product with an unknown brand if they were sold side by side (see appendix 2).  Once A new product has been relased for the product to sell well people have to know about it showing people a product is called marketing, this can be done by TV adverts this is a very expensive way of marketing but it works if it is shown to its target audience i.e. beers target audience would be men and men like football so it would make sense to show a beer advert during a football match finding your target audience involved using stereotypes. Other ways of marketing would be giving a free sample, leaflets, newspapers, magazines, billboards, sponsorship and internet.

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Nike keeps their costs very low by utilising large numbers of cheap labour. This is by having factories outside the United Kingdom, in country’s where cheap labour is freely available e.g. in Eastern Europe and Asia. Over the years Nike has built an excellent reputation as a supplier of good quality and affordable sports wear. This has been achieved by Nike offering an extremely wide range of products which appeal to a considerable proportion of the market. Nike is the second most recognized brand in the world behind coca-cola. This has been supported by extensive advertising campaigns. Nike ...

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