NIKE NUTRITION

 

In order to stay competitive and remain a leader in the sports industry, Nike needs to consider what strategies they should undertake in the coming future.

 

If they take the cost leadership approach by undercutting their competitors in this price sensitive market, they will most likely enter into price wars with each other. Moreover, this will mean that Nike will have to find ways to cut their costs, whether it is manufacturing costs, investments into R&D or marketing costs. This will lead to poorer quality products and less innovation, not only a loss to Nike but also for the consumers. In the end, none of these sports brands will benefit and Nike may face profit losses as well as harming its own image of being a good quality, reputable sports brand.

 

Due to the highly competitive nature of the sports industry, Nike will only be able to maintain a dominator in this field if they continue to be differentiated from its competitors. If Nike merely launches a new line of sportswear, other sports brands will quickly follow and will not bring long-term growth for the company. For Nike to deliver sustainable growth in the long run, they should consider a break out strategy stepping into the food nutrition industry by taking advantage of Nike’s global networks and brand name.