Professional Documents
Culture Documents
Chapter 2
Case Study
NIKE Strategy: Then & Now
Early Days
Characterized by seat of the pants management. Innovative sneaker tread drove early success. Technological product superiority, big-name endorsements and Just Do It ads revolutionized sport marketing. 1980s 1990s: Nike leverages brand strength into new product areas.
Strategic Planning
The process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities
Product
Price
Target consumers
Promotion
Place
IMPLEMENTATION
Marketing strategy:
The marketing logic by which the business unit hopes to achieves its marketing objectives
Marketing strategy:
Target markets, positioning, expenditure levels, and marketing mix
Set goals
High
Star
???
Dog Low
Question mark
???
Use cash to make into a star
Cows
Nurture to generate cash
Dogs
Fix or abandon
EQ
Star: Office XP, Red Bull, IPhone; Nano; IE 7.0, Dell Cash Cow: Cigarettes, Tide, McDonalds ?: OS/2, Apple Computer, Linux, Reebok Dog: Record albums, VCR, Typewriter.
Once a firm has classified all of its S.B.U., it has 4 options:
1. Build 2. Hold
3. Harvest 4. Divest
Winning Strategies
Michael Porters 3 winning strategies:
Overall cost leadership (Wal-Mart) Differentiation (IBM) Focus (Amazon.com)
Strategies
(p. 51)
Growth strategies:
Essential to grow, to keep up with inflation. If economy isnt growing, then you must take away from your competitor to maintain your growth.
New markets
2. Market development
4. Diversification
Market development:
New demographic age groups, or geographical locations (U.S.A)
Product development:
Expanding the product line to attract lunch crowd
Figure 2.3
Diversification:
Entering new markets with new products Growth by acquisition or development
2. Integrative growth
Backwards: Buy up your suppliers.
GM and Delco; Microsoft + Soft Image
3. Diversification
Concentric: New products for new TM using current technology Bombardier SeaDoo Seagrams & Tropicana Penthouse & Omni magazine Horizontal: New products for current TM using new technology Labatt selling snack food Coke Cola bathing suits Nautilus line of clothing Conglomerate: New products for new TM using new technology John Deere selling a new line of frozen diet foods