Nike blue ocean strategy. Blue Ocean Strategy of Nike Inc in the 1990s B Strategy and Management Changes 2022-10-24
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Nike's Blue Ocean Strategy is a business approach that involves creating new market space and making competition irrelevant, rather than competing within existing markets. The concept of a "blue ocean" refers to untapped, uncontested market spaces, as opposed to the "red oceans" of highly competitive and saturated markets. By pursuing a Blue Ocean Strategy, a company can differentiate itself from competitors and create new demand, rather than fighting for a share of existing demand.
One key aspect of Nike's Blue Ocean Strategy has been its focus on innovation and continuous product development. Nike has a long history of introducing new and innovative products, from its first waffle-soled running shoe in the 1970s to its more recent releases such as the self-lacing Adapt BB basketball shoe and the Joyride running shoe, which features tiny beads in the sole that are designed to cushion and support the foot.
In addition to its focus on product innovation, Nike has also employed a Blue Ocean Strategy by expanding into new markets and segments. For example, the company has made a concerted effort to appeal to female consumers, with the creation of products such as the Nike Pro Hijab and the Nike Women's marathon, as well as partnerships with high-profile female athletes such as Serena Williams and Megan Rapinoe. Nike has also made efforts to appeal to younger consumers, with collaborations with popular brands such as Off-White and Supreme.
Another aspect of Nike's Blue Ocean Strategy has been its focus on sustainability and corporate social responsibility. In recent years, the company has made a significant push towards sustainability, with initiatives such as the Nike Grind program, which recycles worn-out sneakers and other materials into new products, and the Nike Better World campaign, which aims to reduce the company's environmental footprint. By focusing on sustainability and social responsibility, Nike has been able to differentiate itself from competitors and appeal to a growing segment of consumers who prioritize these issues.
Overall, Nike's Blue Ocean Strategy has been successful in helping the company to maintain its position as a market leader in the athletic footwear and apparel industry. By continuously innovating and expanding into new markets, Nike has been able to create new demand and stay ahead of competitors, rather than simply competing within existing markets.
Blue Ocean Strategy of Nike
Impact of blue ocean strategy on organizational performance: A literature review toward implementation logic. Value innovation: a leap into the blue ocean. Reduce Which factors Footwear Tariffs can reduce well below the industry level to structure costs? Nike is able to develop and create new market spaces and new demand for its products and offerings — highlighting innovation which is needed for redefining the industrial focus, and changing the balance of emotional and functional orientation within a given industry to better appeal to the target consumer groups. Blue ocean versus competitive strategy: theory and evidence. At the same time, the buyer utility amp also helps NIKE Inc in identifying spaces for differentiation of its products and creating new value propositions for the consumers — playing on the differentiation aspect as well.
The NIKE Inc Company has made use of the four actions framework in reconstructing or developing new value curves or strategic profiles for the company and its various offerings in uncontested market spaces. The company eliminates these hurdles and obstacles earlier along the way to prevent NIKE Inc form actualizing its goals and targets. This is done by the company by focusing on consumer service, adding complementary offerings, as well as enhancing the service offerings for the consumers. In doing so, through the ERRC framework, Nike is able to identiy factors that when altered or transformed will allow it to re-shape the current Value Curve, construct the basis for its Blue Ocean Strategy. Four action framework The four actions framework by Nike has helped the company explore and refine buyer value more intricately. By doing this, Nike is able to create enhanced and increased value for not only itself but also for its customers.
Solved Blue Ocean : Nike (A) (Condensed) Strategy Case Study Solution
Profits there after sky rocketed to a total of 919. With a plan for success in mind, Moore made a deal with a Chicago Bulls rookie, Michael Jordan to endorse a new type of sneaker during each game. The utility levers, in turn, are the ways through which Nike Inc in the 1990s B Strategy and Management Changes--1993-94 Spanish Version can increase and enhance the utility of its offerings across the six stages of BEC for the consumers — thereby increasing the overall utility of the product. These costs are then reflected in the price to consumers. Nike ensures that its costs are maintained through economies of scale and that its product prices are not driven up because of the increase in costs. By doing so, NIKE Inc has been able to create new demand, rather than fight over and encroach existing competitive space.
Solved Blue Ocean : Nike versus New Balance: Trade Policy in a World of Global Value Chains Strategy Case Study Solution
Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. Published by HBR Publications. In the current business environment , Red Ocean is often defined as a competitive environment where industry boundaries are clearly defined, and existing and new players are trying to out-perform each other using Value-Cost Trade Off. With these capacities, the company is able to maintain and control costs, and is at the same time, able to offer higher value to the buyers. Value innovation One of the tools that Nike employs in its application of the blue ocean strategy is the value innovation model or framework.
Under the blue ocean model and framework, the industry structures are assumed to be flexible, and not rigid. However, when a new value curve is created, companies typically face a trade-off between differentiation and low cost. How can Nike Nike's break out of the red ocean of bloody competition? In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Harvard business review, 93 3 , pp. The goal of this analysis is to unveil a blue ocean strategy for Nike that will move the company into a new realm of the industry, in which direct competitors are limited and the intensity of the competition is reduced from that of the current market. Case Authors : C. Nike is thus able to identify different and various utility spaces that its offerings can potentially fill.
S Rubber company invented Keds and by 1917 they were being mass produced. Value proposition offered by Nike Nike's's products and services Core objective is to maximize the value of product and service offerings within the established context. With this sequence, NIKE Inc has also been able to reduce the risks of expansion and internationalization, and at the same time, also ensured that maximum value is created and enjoyed not only by the customers but also by the company itself in the untapped and new market spaces. Value innovation can open up new uncontested market space for Nike Nike's. Create Under the action of create, the Nike Inc in the 1990s B Strategy and Management Changes--1993-94 Spanish Version is able to develop and identify strategic factors and capacities that are new to the industry at large, and have never been introduced before. Chan Kim and Renée Mauborgne 2017 Blue Ocean Shift: Beyond Competing - Proven Steps to Inspire Confidence and Seize New Growth, Sep 26, 2017 W.
Solved Blue Ocean : Nike (A) Strategy Case Study Solution
This enhanced and increased value is developed because of value innovation. Soon Jordan will be 50 years old, and even though he is out of the NBA the economic impact of his commercial success is still felt worldwide. This enhanced and increased value is developed because of value innovation. Introduction to Blue Ocean Strategy EMBA Pro Blue Ocean Strategy for Nike A Condensed case study Describes the history of Nike, its strategy, and the industry in which it competes. That might be a… Air Jordan Sneakers And Its Impact On The Economy Air Jordan sneakers are very marketable and positive economic product. Buyer Utility Map Nike also makes use of the buyer utility map in its exploration of untapped market spaces for purposes of growth and expansion. The four actions of Nike Nike's strategy canvas should be guided toward enforcing these critical qualities.
Blue ocean value creation sequence The sequence adopted by Nike Inc in the 1990s B Strategy and Management Changes--1993-94 Spanish Version makes perfect sense for expansion and business development. Over the past decade, our drive to design and produce better, faster, lighter products has evolved into an even more ambitious agenda — to embed long term sustainability into our business. With value innovation, the company has been able to continually refine its market-creating strategy, and develop new markets for its products, and product invocations. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. This affordability and purchase will lead to a ripple effect in terms of buzz generation for the product. This is done by the company by focusing on consumer service, adding complementary offerings, as well as enhancing the service offerings for the consumers.
Blue ocean strategy: from theory to practice. Creating value innovation: buyer vs. Hence the term red oceans. In 1984 Michael Jordan signed a contract with Nike to wear Air Jordans. The four actions of Footwear Tariffs strategy canvas should be guided toward enforcing these critical qualities.