Does Nike Have a Competitive Advantage Over Other Athletic Shoe Manufacturers?

In 2016, Nike posted sales of nearly $19.87 billion from its footwear division alone.  The next closest competitor was Adidas at $10.68 billion.  ( https://www.statista.com/statistics/278834/revenue-nike-adidas-puma-footwear-segment/ )

When people purchase Nike shoes, they have expectations.  Expectations that they are purchasing a high-quality product.  These expectations have evolved from years of consistency at Nike and have created brand loyalty.  These repeat customers are willing to pay top dollar for Nike shoes.  Because Nike has been focused on its reputation of producing a quality product, it has created a greater economic value for its customers.  Greater economic value equals increased sales, and in the case of Nike, market dominance.

Nike continues to push the limits of providing its customers with what they want, when they want it.  In doing so Nike has been able to maintain a higher economic value than their competitors, allowing Nike to remain the #1 selling athletic shoe brand.






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