The major objective of this strategy is to grow market share. The company is penetrating the competitive market through various other manners like the cost leadership strategy of a firm has extended its market penetration due to reasonable productivity.
Although, due to having a leading position in the global shoe market, penetration strategy is considered a secondary plan of Nike. For example, the market penetration strategy of Nike is to distribute more and an extensive number of athletic shoes to American customers. This strategy helps in generating large profits on sales. It is the secondary growth plan executed by Nikes to penetrate the existing market. When a firm uses an intensive growth plan to penetrate the market by producing the same product in the same market and market segment but at different price levels then it is called market penetration. The main objective of this intensive growth plan is to expand the market share of Shoe Company by integrating the latest technologies in the design and quality of its sports shoes (Gregory, 2017). Therefore, the product development strategy of Nike supports its generic competitive strategy of differentiation. Despite fluctuating buying behavior of the consumer the value and attractiveness of new products remain the same. Modern techniques increase the number of goods and keep them apart from market rivalry. For instance, the mission statement of Nike focuses on the execution of new and innovative product features like unique and different designs of shoes. Product development deals with the innovation of the latest goods to increase the profit income of the firm and is involved in this intensive growth plan. When the organizations decide to bring innovative products for their existing customers through changing designs, product features or characteristics, to retain existing customers then it means a firm is using an intensive growth plan through product development.
The preliminary article is based on the Ansoff Matrix analysis of Nike, which is discussed below. In 1966, the sports company opened its first retail store and introduced Nike Shoe product in 1972. The headquarter of the company is located in Beaverton Oregon. The first name of the company was Blue Ribbon Sports.
Nike was established by Bill Bowerman and his student Phil Knight in 1964.
0 kommentar(er)
