Nike is one of the rare brand that established itself and become popular because of its pop culture in 20th century. In the late twentieth century Nike got prominent as one of the most amazing sporting brand across the globe, and created a most powerful amazing impacts on the consumer’s mind. The initial and effective growth strategy was to import from Japan, and sell in the host country, however, after the strong competitors’ intervention such as Puma, Adidas etc. Nike started its own production unit that is involved in manufacturing high quality shoes in low rates, to earn the high market share (Nike, 2018).
Nike’s operating segment are apparel, equipment, and footwear with the operating regions in Europe, Africa, Middle East, US, Americas and Asia Pacific. It introduces the “Swift technology”, which helps in increasing the track times to 1.13%. Soccer or football wear is Europe’s #1. For better understanding the Nike’s market position and to analyze that whether it is able to capitalize the products, BCG matrix is used for dividing the different segments of the products and benchmark the performance to the strongest competitors (Consignado, 2011). Here is the BCH matrix of Nike;
Cash Cows
These are the product that are the market leader, and bring more of the revenue in the company, as compare to the cash they consume. These have more market share as compare to market growth. This provide cash for turning the question mark in cash cow products. Hardware, equipment and apparels are the cash cow of Nike. The market growth rate of apparel and hardware are 7.67% and -0.43%, however, market shares are 1.12 and 0.93. Nike endorse many famous celebrities like Rihanna for the advertisement purpose to expand the women’s segment, and bring more designs and products in the women category (Shabotinsky, 2017).
Stars
These products generate highest amount of cash and have highest market growth of the company, but there is the possibility of these products turning into cash cow for the company, if the growth strategies are not sustained properly. Footwear are the Nike’s start item, which has 16.07% of market growth and 1.97% of market share. Nike SHOX has also introduced different types of footwear and still it continues towards boom. It profit recover, and growing to 30% to reach around $1.2 billion. Nike’s footwear are famous across the globe as the most qualitative item, and many famous athletes use it (Consignado, 2011).
Question Marks
These are the problem child of the company, which have the more market growth as compare to market share, however, if the effective strategies are made by the company and use efficiently, then the products can be converted into cash cow. Converse, Jordan and Hurley are considered as the question mark of the company. These are the brands which are involve in the manufacturing of the apparel and accessories of the Nike. Converse is almost out of the town, because many athletes switch to competitors or stop using it. Hurley and Jordan need effective strategies as they both have the potential to grow and increase the sales (Bhasin, 2018).
Dogs
These are the products which are at breakeven point for the company, as they do not consume much cash nor they generate enough profit. For Nike Skateboarding (Nike SB) are categorized in the dog quadrant, as it is not considered as the core skateboarding brand in the skateboarding community and did not get much support from the people. Still it is operating, as Nike is the sports brand and Skateboarding is one of the sub category of sports (Adrienne, 2012).
References
Adrienne, 2012. Boston Matrix: Nike. [Online], Available at: http://sites.cdnis.edu.hk/students/084192/?p=389, [Accessed on: 20th August, 2018].
Bhasin, H. 2018. BCG matrix of Nike. [Online], Available at: https://www.marketing91.com/marketing-strategy-nike/, [Accessed on: 20th August, 2018].
Consignado, J. 2011. BCG matrix of Nike. [Online], Available at: https://www.scribd.com/doc/62268255/BCG-Matrix-of-Nike, [Accessed on: 20th August, 2018].
Nike, 2018. About Us. [Online], Available at: https://www.nike.com/in/en_gb/?ref=https%253A%252F%252Fwww.google.com%252F, [Accessed on: 20th August, 2018].Shabotinsky, D. 2017. Nike Stock Forecast: BCG matrix and SWOT analysis indicate the long term value. [Online], Available at: https://iknowfirst.com/rsar-nike-stock-forecast-bcg-matrix-swot-indicate-long-term-value, [Accessed on: 20th August, 2018].
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