We've all heard the slogan, "Just Do It" and most all of us have heard the cool start up story about Bill Bowerman creating the first waffle sole for better comfort and performance using his wife's waffle iron in the kitchen. What is so amazing to me about Nike's history is how so much of it lives and breathes today at their world headquarters, in Beaverton, Oregon.
What's truly amazing is the longevity of Nike's competitive advantage over say, Under Armour or adidas. As noted in our textbook, there was a study performed on what types of industries or product segments were more likely to sustain a competitive advantage over the long haul several factors included, "industries that (1) are informationally complex, (2) require customers to know a great deal in order to use an industry’s products, (3) require a great deal of research and development, and (4) have significant economies of scale are more like to have sustained competitive advantages compared to firms that operate in industries without these attributes."
Barney, Jay B. (2014-01-17). Gaining and Sustaining Competitive Advantage (4th Edition) (Page 17). Prentice Hall. Kindle Edition.
Personally, I would not identify Nike with many of the above factors, but what I would attribute Nike's sustained competitive advantage is their ability innovate and continue to create more significant economic value or perceived value. One strong driver is their Branding; Nike continues to actively seek and market their innovative brands to a younger, diverse crowd across several sports categories where they gain brand loyalty. There are many items that go into Nike's mix such as most every sport imaginable, as well as each gender and even age brackets. The product assortment is vast and far reaching, but by specifically targeting the younger consumer, I believe Nike is able to "capture" that brand loyalty at a very early stage that can carry-on for many years.
Overall, Nike is committed to bringing innovative, highly functional sportswear and equipment with the under current mantra of "if you have a body, you are an athlete" (Bill Bowerman), which I believe resonates with the masses.
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