EXECUTIVE SUMMARY
One of the most significant labels across the international markets Nike Air Max has been maintaining a market leader position across the international market to sports clothing and footwear. The following report aims to analyse the marketing strategies and strategic management practices of Nike Air Max and conduct the evaluation of the influence of the same on the organisational success across the extremely competitive international athletic apparel and footwear industry.
The report aims to achieve a proper discussion on the various perspectives by analysing the strategies that have helped Nike Air Max successfully sustain the position of being a dominant label across the international athletic apparel and footwear industry.
The enhancement of effective resource allocation concerning research and development will help Nike attain a better competitive edge across international markets alongside maintaining effective addressal of the changing market demands. The company is further advised to enhance workplace diversity and inclusion which would help improve creativity and innovation across the global workplaces maintained by Nike.
Introduction
Multinational business organisations have been maintaining effective strategic marketing practices to achieve the set organisational goals. As stated by Waymer and Logan (2021), strategic marketing could be defined as systematic processes pertaining to the formulation, implementation and evaluation of organisational strategies to achieve the set organisational objectives.
The following report aims to analyse the marketing strategies and strategic management practices of Nike Air Max and conduct the evaluation of the influence of the same on the organisational success across the extremely competitive international athletic apparel and footwear industry.
One of the most significant labels across the international markets Nike Air Max has been maintaining a market leader position across the international market to sports clothing and footwear. This label implements various methodologies of strategic management for maintaining the competitive position as well as achieving the set results of the current research that have been implemented on Nike Air Max inclusive of the competitive analysis methods market segmentation, unique selling propositions, value propositions with the help of various strategic models.
The report aims to achieve a proper discussion on the various perspectives by analysing the strategies that have helped Nike Air Max successfully sustain the position of being a dominant label across the international athletic apparel and footwear industry.
Product overview – Nike Air Max
One of the footwear products Nike Air Max has been engineered to achieve optimal performance in athletics which helps cater to both rigorous and leisurely activities. The aesthetics of the chosen footwear brand highlight a streamlined and contemporary nature and is manufactured with the help of several high-quality factors which help ensure optimal cosiness and sturdiness (Nike.com 2023). The footwear is identified by the technology of conspicuous air cushioning the integration of which is visible across the footwear sole. This mechanism helps in mitigating the shock impacts alongside reinforcing the foot muscles during various significantly impactful activities.
The upper part of the footwear is developed from a blend of supportive synthetic and breathable waste materials (Nike.com 2023). The mathematician helps in the augmented circulation of air which maintains optimal comfort and temperature of the food while the synthetic overlays help in steadiness and reinforcement.
This footwear also maintains and collar which provides reinforcement and supplementary comfort. The footwear also maintains a resilient outsole of rubber which provides exceptional grip across various terrains. This product is available across a huge assortment of designs and colours which helps in catering to the interests and demands of the target clients of the given organisation.
Nike Air Max footwear
(Source: Nike.com 2023)
The product has faced several changes since its inception across the global footwear market, especially in terms of functionality and design of the footwear product. One of the major factors that have helped Nike Air Max gain a crucial and effective unique selling point refers to the visible system of air cushioning that is present within the footwear sole (Nike.com 2023).
This has helped distinguish the given brand from the other brands that have been active across the global markets. It could also be mentioned in this regard that the company in discussion has been maintaining frequent collaborations with well-known fashion brands and designers to manufacture exclusive sneakers under the brand name Air Max.
This helps Nike cater to a broader client segment that extends beyond the athletic spectrum (Nike.com 2023). One of the contemporary iterations of Air Max 90, an iconic product of the series, the Nike Air Max 2090 showcases forward-thinking aesthetics alongside maintaining the integration of substantial components of the Air Max series into the sole of the footwear which ensures optimal cushioning for the wearer (Nike.com 2023).
Similar observations could be maintained for Nike Air Max 97 which visibly integrates an Air Max unit into the sole for maintaining effective cushioning for the wearer. In the case of Nike Air Max 720, the tallest Air Max unit is observed to be integrated into the footwear thus ensuring maximal levels of comfort and cushioning (Nike.com 2023). The product highlights the use of a well-ventilated, fashionable mesh upper as well.
Analysis
Competitor analysis -Porter’s Five Forces
Bargaining power of the buyers
The bargaining power of the buyers in the case of Nike Air Max is observed to be Moderate.
The customer bargaining power, as per the discussions maintained by Anastasiu et al. (2020), is heavily dependent on the high levels of price sensitivity among the target clients as well as the presence of substitute products that are available across the chosen markets. Several footwear brands across the global markets are capable of providing comparable products thus facilitating the clients gain the capability of switching to other brands. Clients are also known for maintaining price sensitivity and thus could switch over to alternatives that are low-priced as compared to Nike.
Bargaining power of suppliers
The bargaining power of suppliers in the case of Nike Air Max is observed to be Low.
The supplier bargaining power across multinational organisations heavily depends on the abundance of the suppliers associated with the company. In the case of Nike Air Max, the bargaining power of suppliers is low due to the huge number of suppliers who have been associated with the company. Mugo (2020) mentions that Nike has been maintaining associations with several suppliers and hence could procure the required primary resources from several vendors and could maintain convenient transitioning across alternative suppliers across the operational markets. This allows Nike Air Max to maintain an authoritative positioning across the global markets owing to the diminution of supplier bargaining power.
Threats from new entrants
The threat from new entrants in the case of Nike Air Max is observed to be Low.
As highlighted by Li (2022), the establishment of a new market entry especially in the case of the footwear industry requires the implementation of a specific amount of capital alongside the financial capability to take care of other expenses that are incurred by these companies. In the case of Nike Air Max, the company in discussion is observed to maintain a huge investment in terms of maintaining effective operations across the global markets. The maintenance of a wide and influential brand recognition on the part of Nike Air Max also presents a significant challenge for the potential new entrants across the international markets to enter the global footwear industry.
Threats of the substitutes
The threat of substitutes in the case of Nike Air Max is observed to be High.
As highlighted by Ma (2022), the current day situations maintain the presence of various significant alternatives that could present a significant threat to the operations maintained by Nike. The organisational target clients also maintain access to alternative products and brands that have been extending similar products at low prices. These companies are not only limited to specific footwear categories but also provide the target clients with a wide variety of footwear and apparel.
Industry rivalry
The industry rivalry in the case of Nike Air Max is observed to be High.
As per the observations maintained by Diao (2021), the international footwear industry is characterized by the presence of a wide number of competitors who have been providing the target clients with similar products across the apparel and footwear sections. In the case of Nike Air Max, the biggest competitors of the product segment refer to the product segments extended by the companies Under Armour, Reebok and Adidas. The introduction of new product models and merchandise alongside the employment of assertive strategies for promotion often helps these organisations gain a larger market share across international markets.
Market segmentation – STP Analysis
Segmentation
The target clients for the Air Max sneakers include individuals who tend to prioritise their need for self-expression and fashion alongside focusing on the psychographic details of performance and comfort. From the behavioural perspective lens, as discussed by Thomas and George (2021), people associated with active engagement in athletics sports and other physical activities constitute the target clients of Nike.
The organisational management at Nike identifies sub-segments across the broader segments highlighted in this section. The marketing department across Nike aims to target specific segments of the organisational client base. The company utilises the release of limited-edition sneakers to attract the attention of sneaker enthusiasts alongside attracting women with the help of the products that are enlisted under the Nike Women athletic wear range.
Targeting
The targeting strategy maintained by Nike comprises product customisation and other marketing messages that would suit the preferences maintained by the concerned segments of the target clients. In the case of the Nike Air Max sneakers, the company has been manufacturing footwear that maintains attractive designs and colour schemes which would be capable of attracting a greater audience to the given footwear product. Fu (2022) highlights the fact that this would help attract millennial clients by catering to the fashion preferences of the concerned client segment.
This would further enable the Air Max footwear range to maintain certain attributes which would resonate with individuals prioritising physical fitness and engaging in athletic activities. The company in discussion, Nike also employs several marketing strategies like athlete endorsements, influencer marketing and social media marketing techniques in effectively reaching out to the target audience maintained by Nike across international markets.
Positioning
As per the opinions of Kuang (2022) the company in discussion, Nike has been marketing the Air Max range as one of the high-end products that are manufactured and marketed by the global footwear. These products generally highlight the superior functionality innovative design and exceptional quality of the products as compared to other substitutional products that are available across the international markets. Promotional literature for these footwear presents a greater emphasis on the unique characteristics of the commodity especially the cushioning technology used in the Air Max sneakers.
These shoes are often presented as a representative feature that denotes high prestige for individuals who have been maintaining a greater valuation for distinctiveness and fashion. The company has been marketing the Air Max sneakers as one of the multifunctional products which could cater to both the leisurely and athletic needs of the concerned individual. This approach as maintained by Nike has helped reach out to a wide range of clients who have been prioritising both comfort and aesthetic appeals without necessarily being enthusiasts who have been dedicated towards the sports industry.
Value proposition
The Nike Air Max footwear range is known to have been providing customers with a unique value proposition by presenting them with a proper blend of functionality, fashion and comfort. The visually striking aesthetic panel is one of the most unique factors that is presented by the Nike Air Max footwear range. Global fashion aficionados and athletes across the world have been choosing to use the product due to the wide range of designs tiles and colours that are available across the international market. These shoes are available in several designs that are capable of catering to individual preferences ranging from colourful to bold and understated to classic.
The air max sole unit which is located at the hills of this footwear range is one of the most impactful distinguishing factors for the entire product range. This has been providing improved comfort to the wearer as compared to the other available similar products across the international market.
As highlighted by Puterisari (2022), this technology has been offering exceptional cushioning and support thus highlighting the product to be a highly favourable product for individuals engaging in prolonged activities that include standing or physical activity and even for athletes. The design further guarantees effective moisture management and optimal ventilation across the feet during extensive physical activities by incorporating supplementary attributes that boost comfort and other breathable components into the multiple iterations of the Air Max footwear.
The manufacturing of the shoes belonging to the Nike Air Max range has been majorly focused on their performance. This footwear is developed from premium materials that help maintain longevity and sturdiness eventually enhancing the chance of enhancing popularity amongst athletes and other individuals who have been aiming to buy dependable footwear products.
The incorporation of various sophisticated technologies like flywire cables alongside the use of lightweight materials capable of augmenting athletic performance and affording better organic sensations during stressful activities like leaping or running.
As inferred from the discussions put forth by Shen et al. (2021) the distinct value proposition maintained by the Nike Air Max footwear range is derived from the maintenance of rare amalgamations of functionality fashion and ease which is rarely available in substitutional products that are marketed by the competitors of Nike.
These shoes are generally observed to be a commendable option for people who have been seeking dependable shoes for running and other such activities alongside maintaining a better taste in terms of fashion aesthetics.
The product line maintained across the Nike Air Max collection helps in offering a wide range of styles and colours which help in catering to the needs of a broad preferential spectrum. The exceptional quality and value of these footwear products often help enhance the recommendation for the given product.
Risks involved
In the words of Liu et al. (2021), the footwear range features a sole that offers enhanced shock absorption while maintaining stability. However, stepping on uneven terrains might result in ankle sprains which might present a major issue for the person who has been using the product. The other major factor that would help ensure effective stability and support refers to the selection of a proper fit and size of the given sneakers. Russo et al. (2024) mentioned that these footwear products have been aiming at presenting the wearer with proper cushioning and support.
However, the use of synthetic materials for producing the chosen footwear might lead to heat-induced injuries due to the lack of effective breakability of synthetic materials as compared to natural materials. The person wearing the shoe may face several heat-induced issues like athlete’s foot, blisters and even sweaters due to the lack of effective air permeability resulting in increased foot temperature.
The person wearing the shoe might also face tripping hazards and even sustain injuries from falling since the thick soles of the shoe often impede the capability of the concerned person to perceive the walking ground. This might often lead to diminished performance levels amongst individuals using these shoes despite the intended purpose of enhancing their athletic capabilities.
An athlete might receive a low level of sensory input from the ground due to the thick padding used in these shoes thus resulting in compromisation in terms of motor and equilibrium control. Pizzi et al. (2020) further state that Nike Air Max shoes present potential threats to the environment by using synthetic non-biodegradable materials alongside harmful chemical substances across the production procedures.
UN SDG Alignment
United Nations Sustainable Development Goals
(Source: Leal Filho et al. 2020)
SDG 1 and 4
Nike Air Max is capable of participating in philanthropic activities that promote ecological and societal initiatives. Leal Filho et al. (2020) state that these are inclusive of activities like contributing to entities that aim to achieve SDGs or establish efficient autonomous philanthropic institutions that aim to eradicate poverty and ensure quality education for everyone.
SDG 3
Kørnøv et al. (2020) mention that Nike Air Max footwear is capable of promoting good health and well-being. This stems from the capability of encouraging effective engagement across activities which ensures fitness with the help of enhanced physical activities. The brand aims at prioritising athletic excellence and performance alongside promoting physical activity as well as healthy living amongst the organisational clients.
SDG 5 and 10
The chosen brand emphasises inclusion and diversity across the employee base and marketing endeavours maintained by Nike. This could be implemented by including various models of advertisement and promoting diversity across the organisational workplaces which would help in promoting gender equality and reducing workplace equalities as well.
The company further aims to foster community engagement by aiding the economic and social development of the various local communities by sponsoring community events and providing effective support to local enterprises.
SDG 8 and 13
Nike Air Max has been maintaining sustainable and ethical sourcing for raw materials through the establishment of effective collaborations with suppliers who prioritise equitable labour endeavours and practices, eventually reducing their ecological footprint.
This, according to Gulseven and Ahmed (2022), helps in promoting sustainable and inclusive economic growth employment and decent work alongside seeking to combat the impacts of climate change. The company has also been aiming to use renewable energy sources that will reduce greenhouse gas emissions by 2025.
SDG 9
Diantari and Jokhu (2021) state that the company has been implementing new methodologies for minimising waste products and encouraging innovation across the global workplaces thereby complying with sustainable development goal 9 which deals with industry innovation and infrastructure.
SDG 12
Delanka-Pedige et al. (2021) highlight that Nike Air Max has been prioritising the sustainable development of products for mitigating environmental issues by adopting production methods and materials that are environmentally sustainable alongside promoting recycling and waste reduction procedures. The company has been using sustainable manufacturing techniques and recycling materials to develop new products as well.
SDG 17
The company has been maintaining effective collaborations with other organisations and suppliers thus improving sustainability as well as social responsibility. As per Sharma et al. (2021), the company has been collaborating with better cotton initiatives to highlight the importance of sustainable cotton production eventually mitigating the ecological issues associated with cotton farming.
Recommendations
Enhanced research and development
The enhancement of effective resource allocation concerning research and development will help Nike attain a better competitive edge across international markets while maintaining effective addressal to the changing market demands. This will also help in expanding across uncharted global territories thus enhancing the client base of the company resulting in increased revenue generation and brand popularity.
Prioritising customer satisfaction
The company can increase customer satisfaction by providing customised products and services that are tailored to the needs and demands of the target clients. The company is further advised to enhance workplace diversity and inclusion which would help improve creativity and innovation across the global workplaces maintained by Nike
Conclusion
In conclusion to the above discussion, it could be stated that the company in discussion, Nike Air Max could maintain enhanced performance and productivity through the implementation of effective strategic management practices.
This can be achieved through brand and product development alongside international expansions. The introduction of eco-friendly practices and policies will also help develop effective and sustainable business practices that are undertaken by Nike Air Max eventually enhancing the competitive positioning of the company across the global markets.
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