International Strategy

Throughout the life of Nike Inc., they have expanded from a shoe company, to everything in athletics. From shoes to clothing,  to the sporting equipment used, Nike has been one of the biggest international successes in athletics. As a recognizable symbol worldwide, they are able to tap into many different market segments, different sports, and different groups of people throughout the world in order to achieve the success they have had.

In the United States, Nike is a market leader in sports equipment and apparel, and they have multiple star athletes that are endorsed by Nike, which also happens around the world with athletes like Tiger Woods, Lebron James, Rory McIlroy, and Rafael Nadal. The sports that these athletes represent are popular around the world, in some countries more than others, which is why Nike has diversified their sponsorships, in order to get worldwide attention and brand recognition. These athletes are a major influence on the image that Nike has around the world.

When marketing and selling worldwide, Nike has to take into account the trends, values, customs, and overall culture of the countries they are selling in. Their marketing plan has to be different to cater to the popular sports, the fashion trends, and the values that each country has. In their ad campaign that aired before the London Olympics, Nike had a goal of reaching athletes around the world with a simple, but effective message of "finding the greatness" in each and every person. This was a perfect campaign for them before the Olympics, as it brought in sports and people from all walks of life, of different ages, ethnic groups, and playing different sports. It sent across the message that each one of us has greatness, and not only Olympic athletes can be great at what they do. This was an effective way to get the attention of their markets worldwide, at a time when everyone around the world is watching the Olympics.

Along with these campaigns, Nike outsources a lot of production, which helps to keep the costs down. They have very successful technology that is advanced and efficient for the manufacturing plants all over the world. Nike has had success on an international scale because of the way it carries out its international strategy. Their campaigns worldwide, combined with its international athletes that use and promote the products, have a big impact in the way the company runs, and the success that it has had.

Business Level Strategy

Nike incorporates a business level strategy that most resembles a differentiation strategy. Through product innovation, technology development, and high quality products, they are able to differentiate themselves from competitors and build their brand image.

Overall cost leadership is not something that Nike looks to utilize. Their products are higher end prices that customers are willing to pay for because they see value and unique qualities in them. Through NikeID and other personalization procedures, such as college sponsorships, Nike enhances the perception that the product they provide is one of a kind and specialized for the customer wants and needs.

Nike does not utilize a focus strategy either, as they have a wide market segment, from clothing, to shoes, to sporting equipment, and is sold around the globe. Rather, they look to be the best in the industry in all of these areas. The non-price attributes that Nike attributes to their products, such as the swoosh and the "Just Do It" motto are something that customers see value in and separate their products from competitors.

They also have a number of high profile athletes that they sponsor and use as brand images, which has a big impact on the buyer base. Athletes like Tiger Woods, Rory McIlroy, Michael Jordan, and Lance Armstrong all have enhanced the value of Nike, even through times of trouble with Tiger and Lance. Because they have built up their reputation so much, and because their products are high quality and viewed as valuable, they do not lose their buyers.

By focusing on a differentiation strategy, Nike takes on a lot of investment into research and development, as well as technology innovation, in order to always have the upper hand on the competition. In this way, they can patent a lot of their products and materials, helping to create the sustainable competitive advantage that they want to achieve.

Intellectual Capital

When analyzing intellectual capital and intellectual property, Nike is among the top companies that comes to mind. Between brand recognition, brand loyalty, social capital and human capital, Nike is among the leaders in the industry.

One of their biggest forms of intellectual capital includes their logo, the Nike Swoosh. Customers perceive this as having value and are willing to pay extra money to have this logo on their clothing. It is recognized worldwide, and is one of the easiest to distinguish, which adds huge value to the company and to each of their products. With such a wide industry, and so many specialty products, the Nike Swoosh, and the Just Do It slogan combine to create enormous value for the company. Without these, Nike wouldn't be where it is today.

Another important part of their intellectual capital includes their human capital. They have millions of workers worldwide that combine to create a unique workforce who communicate with each other and hold similar values aligned under the company business model. Between the people who come up with the new product ideas, those that help with innovation technology, and those that specialize in each type of sport or activity that Nike covers, the employees are invaluable to the organization.

Lastly, the social capital that Nike has within and surrounding the organization is extremely important to them. They have influential and beneficial relationships with college athletic departments and professional athletes who wear their products and give the company great exposure. They also have partnerships for sponsoring events, and other networking opportunities that they take advantage of in order to get brand recognition and brand loyalty.

The combination of these factors help to provide Nike with a highly reputable, recognizable product that customers are willing to pay for, and competitors are unable to copy. Both of these significantly improve the chance of survival and success within the industry, which is easily seen in the case of Nike.