Could some please help me. I need a response to my classmate post Here is the qu
ID: 328953 • Letter: C
Question
Could some please help me. I need a response to my classmate post
Here is the question:
Here is their post:
Learning Activity #1
Now is the time to select a strategy but before you identify a specific strategy to implement, you have to create a few alternatives to choose from. During the previous week you identified the generic strategic direction for either Kroger or Nike. It is now time to identify specific alternative strategies for implementation. Based on the strategic direction that you identified in Week 4, create 2-3 strategic alternatives, i.e., actual strategies that the organization should pursue. Keep in mind that these alternatives MUST fit under the umbrella strategic direction you identified last week. Be sure to fully explain each alternative and why its a good possibility including supporting rationale.
Nike utilizes the differentiation strategy to convince its customers to pay a higher price for their products. Based on this strategic direction, two strategic alternatives that Nike should pursue to continue its success are acquisition and focus or market niche strategies.
A market niche strategy is a marketing approach for a good or service which features appeal to a particular market subgroup. A typical product using a niche strategy should be easily distinguished from other products and will be produced and sold for specialized uses within it particular market. While niche retailers may not appeal to broad groups of consumers, they can meet the special demands of the smaller groups they target(Hartman,2018). Nike must continue to innovate and produce new products while allowing some of its new products to be niche products, which will allow Nike to reach out to a new customer base.
An acquisition strategy is a strategy used when buying out or taking over another company. Acquisition strategy involves finding a methodology for the acquisition of target companies that generates value for the acquirer. The use of an acquisition strategy can keep a management team from buying businesses for which there is no clear path to achieving a profitable outcome(Accounting Tools,2017). A business may have gradually built up an excellent business within a certain geographic area, and wants to roll out its concept into a new region. This can be a real problem if the company’s product line requires local support in the form of regional warehouses, field service operations, and/or local sales representatives. Such product lines can take a long time to roll out, since the business must create this infrastructure as it expands. The geographical growth strategy can be used to accelerate growth by finding another business that has the geographic support characteristics that the company needs, such as a regional distributor, and rolling out the product line through the acquired business. This form of strategy falls perfectly in line with Nike's continuous stride towards being the great innovative company that they are.
Explanation / Answer
It is quite challenging to choose a particular strategy. In this process, generating several strategic alternatives is quite important. Companies choose a particular strategy based upon their needs and aspirations. For example: Nike has selected the differentiation strategy to attract its customers. Two strategic alternatives that companies can use to continue its success:
1) Acquisition and focus
2) Market niche strategies
In acquisition strategy, companies might acquire target companies which are generating value to the customers. For example: TATA has acquired Jaguar to get strengthen its automobile business. Many times, it can be utilized to enter into a new global market or new geographical area. Companies can leverage their strengths to get competitive advantage in the marketplace.
Niche marketing means find smaller segments of market within a broad segment. To achieve it, organizations must design new product or services to get more customer share. Niche markets can be well served with specialized strategies by the companies. Customers can be better served with offering unique products for their use.