Could some please help me. I just need feedback, I need a reply to my classmate
ID: 329004 • Letter: C
Question
Could some please help me. I just need feedback, I need a reply to my classmate post to the dicussion board.
Here is the question: 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.
Here is what my classmate post:
Learning Activity #1
The alternate strategies I think Nike should pursue implementation on are the concentration and diversification strategy. With the concentration strategy, Nike can focus on market penetration, market development and product development (Mastering Strategic Management, 2014, Corporate-Level Strategy pg. 241). The concentration strategies have helped Nike gain and keep a competitive edge in the athletic shoe industry. The market penetration strategy allows Nike to increase their sales in their current market while expanding the number of stores that carry its products. The product development strategy is a growth tactic used to introduce new products into existing markets. With product development, Nike can continue to introduce new products in order to increase their profits. This could be done through the introduction of a new shoe color or design. This simple addition has kept Nike’s customer’s attention on their brand. Another strategy Nike has been successful in is market development. Nike has a competitive edge over their competitors because they are able to target new markets. Not only is Nike entering in markets in the U.S and China, they are entering new markets in the Middle East in order to increase their profits on shoes and clothing apparel.
The diversification strategy will also be a good alternate strategy for Nike since it will allow them to venture into other product lines solely on their own in order to increase its revenue and expand their product lines. Before venturing in a new product line, Nike needs to make sure the products are what consumers want, take in account all cost needed to produce the products and make sure their company will continue to have a competitive advantage over their competitors once the products are put in the market. There are two types of diversification which are related and unrelated. Related diversification is when a company moves into an industry that has some likeness with their current industry. Unrelated diversification occurs when a company moves into an industry that does not resemble their current industry (Mastering Strategic Management, 2014, Corporate-Level Strategy, pg. 256-261). Nike has a related diversification since, they are constantly adding products such as jewelry, beach style clothing and shoes for women and children.
Explanation / Answer
Nike could also invest into building and sustaining its core competency so that it is way ahead of its competitors in terms of quality and range of products available with them. Building core competency will surely give Nike edge over its competitors and they wil be able to garner better market shares. It requires investment in manpower and material and Nike will be able to realise long term gains through this strategy.
Also the diversification strategy should focus not only on the product diversification but also market diversification. They must identify new target markets for their products. They must build a core team to do market research and come up with market entry strategies after proper market analysis. Market diversification will lead to generate more sales for Nike and they can leverage their brand name and influence more customers to buy their products.