new trand in business model

May 29th, 2015
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Academy of Art University
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Since Nike was competing in such an industry which was mature in business life cycle and naturally, there was immense competition to attract and retain the customer in order to increase profitability. However, Nike did not play price wars in that competition since it would reduce profitability for industry and the players in it. Nike, to combat, the competitors followed nonprice competition strategy in order to maintain and increase its market share and profitability.

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1. What business model and strategies is Nike pursuing?In the case scenario it has been provided that Nike's amazing growth came from its business model which has always been based on two functional strategies :a) Creation of state of the athletic shoesb) Publicizing the quality of the shoes through dramatic guerilla style marketingSince Nike was competing in such an industry which was mature in business life cycle and naturally, there was immense competition to attract and retain the customer in order to increase profitability. However, Nike did not play price wars in that competition since it would reduce profitability for industry and the players in it. Nike, to combat, the competitors followed nonprice competition strategy in order to maintain and increase its market share and profitability.Product development (improving product design): Generally, the state of the art refers to the highest level of development which is somewhat related to product develoment. Because product development means the creation of improved products. Here,Nike focused more on product quality to differentiate in the industry. Nike followed this strategy to maintain and increase its relative compet

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