Nike is, without a doubt, the leader in the sports product market – and has been for a very long time. Behind their continued success is a business strategy that emphasizes innovation and consistency in their products.
Created in 1962 as Blue Ribbon, the founders of Nike initially wanted to introduce Japanese athletic wear to the USA to break the monopoly of Germany in the market. However, in just a few decades, Nike became a global phenomenon just a few decades later, becoming the biggest sportswear company globally.
The key to their immense success, and their unique business strategy, is fantastic marketing. Nike has developed a unique identity in the global market based on its easily recognizable logo and all of the advertisement campaigns launched around it. The catchphrase “Just Do It” is more than just a slogan. It has permeated social consciousness and become much more than that.
One key aspect of Nike’s business strategy and marketing is the emotional value they attach to their products. A lot of their marketing campaigns are based around social causes and present ideas that aim to inspire and promote societal betterment.
Nike’s quick rise in the 1990s was mostly based on its public promotion and sponsorship of certain athletes. While other sports brands were simply running advertisements on durability and performance, Nike was attached to Michael Jordan. The brand quickly became synonymous with the most marketable athlete in the world, becoming a household name and compounding sales.
With their penchant for using the latest technology and buying out rival products, such as Converse, Nike has shown that it is ready to adapt and not just be a one-trick pony. The competition in the athletic wear market is fierce, and Nike does not shy away from its competitors or try to buy them out. Instead, Nike thrives in the environment. The brand relies on fierce competition to stand out. Nike exists because it’s different and that’s what they use to sell their products.
Nike has generated revenue of $18.75 billion in the US alone this year. Its global revenue clocks in at a whopping $46 billion, with the company earning more than $6 billion as net income. These overwhelming numbers show a company operating at the very top of its game. Driving that is a well-defined strategy that involves producing and selling a diverse range of products.
With their focus on quality, the stars they sponsor, and their classy marketing campaigns, Nike will easily remain the biggest athleisure company in the world for quite some time. Nike consistently remains ahead of its competition in both technology and customer engagement. Its marketing campaigns are still widely studied, receiving acclaim from all quarters.
At the end of the day, Nike’s core business strategy has not changed since its rise in the 90s. However, they have been quick to adapt and integrate, always staying ahead of the game. If there’s one business you want to take inspiration from, it is Nike.