NIKE NUTRITION

Strategically Important Capabilities

 

In order to pusure an optimal breakout strategy, it is clear that Nike as an organisation has the ability to leverage many infrastructural capabilities, that will allow it obtain a competitive advantage over its main competitors. The value curve clearly illustrates that the with the comparabley expansive Business Model and Infrastructure that Nike has constructed, that it has the ability to promote a structuralist strategic approach, and leverage its substantially superior capabilities bring an added level of value to consumers of the industry.

 

• Brand Identity – The identity that Nike as a brand holds within the industry will facilitate growth and acceptance by the new consumer base, owing to the familiarity of the brand and the emotionally accessible nature

 

• Marketing – The extensive marketing channels that have enabled it to communicate to its current consumers and maintain a competitive advantage can now be channelled to ensure optimal penetration of the Sports Nutrition industry. This principle is further enhanced, as the breakout into the Sports Nutrition market is very much coherent in its current brand identity. Nike has partnered its consumers in their sporting and lifestyle ambitions, and now it has the ability to optimally fuel such consumers through tailored nutrition.

 

• Reputation of Excellence – Whilst its Brand identity promotes a sense of familiarity within the new consumer base, it is the reputation of excellence on which Nike has built such a dominant business model that will ease the consumer adoption.

 

• Distribution Channels – In being a market leader in the Sports Equipment and Accessories Market, Nike already partnerships with entities that will enable it to gain a significant advantage over rivals through distribution channels. It’s marketing leading E-Commerce network will also ensure that it is able to capitalise on the growth of the online Sports Nutrition market.

 

• Supplier of Complementary Goods – The manner in which Nike is a leading supplier in the Sports Equipment and Accessories Market, also presents the possibility to leverage its current red ocean position through the production of the complementary good of Sports Nutrition. As a market leader, Nike already has access to the target demographic of the Sports Nutrition Industry. 

 

 

 

Identification of Strategic Gap

 

Whilst Nike has marketing and distributive ability to penetrate the market in a manner that competitors are simply not able to, the value curve illustrates a significant capability gap. 

 

 

• Knowledge Of Sports Nutrition – Knowledge of Sports Nutrition is twofold; an understanding of the products and the scientific benefits of such to the consumer, and an understanding of the market dynamics and general trends within the industry that will enable a strategic competitive advantage. A deep understanding of the products and their ingredients is especially prevalent given the specialised nature of the industry.

 

• Sports Nutrition Manufacturing Ability - Due to the mistrust placed on the industry (see industrial analysis), the capability to manufacture Sports Nutrition Products in-house is invaluable for consumer confidence.