Could someone assist me with a reply to my classmate reponse. This is the Topic
ID: 327350 • Letter: C
Question
Could someone assist me with a reply to my classmate reponse.
This is the Topic of the discussion post: Discuss which generic business-level strategy is best suited to keep the company you selected competitive.
Here is what they posted to the question:
The generic strategy that Nike falls into is the differentiation strategy. This is evident as people will pay more for their shoes, as they are what they want (Saylor Foundation, 2016, pg. 149, para. 1). This is the best strategy for Nike. While they might not sell the most amount of shoe, they make a decent profit off each pair of shoes sold. Nike can maintain their position in the premium shoe market and has marketed a highly efficient brand. This also allows Nike to take certain lines and sell them for even more money. In some cases, Nike can re-release vintage for hundreds of dollars and sell out in a few hours. This strategy has worked for Nike and kept them highly competitive. Although they tend to have slightly higher prices than other companies, Nike has established a dedicated customer base that will buy their shoes regardless of price.
Explanation / Answer
There is doubt in the fact that the strategy or approach that Nike has adopted is quite the fit for them and their objective is to make more from less and that is the reason their target audience is small because their strategy actually does not allow the target to be large. I believe that such an approach is effective for Nike because they do not make show for the common people, rather that is for the elite and the brand value that they possess has helped a lot in making their strategy successful. There is no doubt in their capability in the market and I agree that their customer base is also quite loyal and they have also been quite effective in developing products that has helped them do good. Nike has been quite effective in their venture to be successful in the industry.