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.