Nike: Win In Retreat And Plagiarism

First, the creation of Nike, Phil, is a mediocre runner who takes part in the 1 mile race. His best result is 4 minutes and 13 seconds, and has not entered the ranks of world class athletes (4 minutes).

But he was trained by University of Oregon's famous coach Bill Bowerman at the end of 50s.

In 50s, Bowerman became famous in Eugene City, Oregon, because he won the world record of long distance running year after year.

He keeps trying on all kinds of sports shoes. His view is that running shoes with an ounce of weight will also produce excellent results in winning games.

During her study of MBA at Stanford University, Phil wrote a paper that Japanese people could make Sneakers by making cameras.

After earning her degree in 1960, Knight went to Japan to apply for the qualification of selling tigers shoes in the United States.

When he returned to the United States, he brought samples of shoes made by the company to Bowerman.

In 1964, knight and Bowerman began partnership.

Each of them brought up $500 to form a shoe manufacturing company, producing sole for tigers' running shoes.

They put the finished products in the cellar of NAT's father-in-law's house, and they sold $8000 worth of imported shoes in the first year.

In the daytime, Knight spent accountancy at the library and the Brandon company. He sold sports shoes along the street at night and on weekends. Most of them sold to sports teams in secondary schools.

Finally, in 1972, knight and Bowerman finally invented their own shoes and decided to make them themselves.

They contracted the production tasks to the cheap labor factories in Asia, and named them Nike, which was based on the name of the Greek god of victory.

At the same time, they also invented a unique symbol Swoosh (meaning "swish"), which is very eye-catching and unique. Every Nike product has such a mark.

Nike shoes debuted in the competition during the 1972 Olympic Games in Eugene, Oregon.

The marathon athletes who were persuaded to wear the new shoes got fourth to seventh, while those who wore Adidas shoes won the top three in the preliminaries.

On a Sunday morning in 1975, Bowerman played a propane rubber in the baking mold of waffles.

A new type of shoe sole made of small rubber round nails on the sole of the waffle makes it more elastic than other popular shoes in the market.

This kind of product innovation looks simple, and it first achieved the cause of knight and Bowerman.

But the real driving force behind Nike's leading position in the US market is not product innovation but imitation.

The Nike company modeled on Adidas's products as a model. The result was that the counterfeiters defeated the inventor.

Two, Nike's offensive practice proves that the "waffle" soles made by Bao man are very popular with athletes.

As a result, the sales volume of these soles reached US $14 million in 1976, with the sales volume of US $8 million 300 thousand in the previous year and $2 million in 1972.

Nike is leading in the footwear industry due to its careful research and development of new style shoes.

By the end of the 70s, Nike's research and development department employed nearly 100 researchers.

The company produces more than 140 different styles of products, some of which are the most innovative and state-of-the-art in the market. They are designed according to different foot types, weight, speed, training plan, gender and different technical level.

By the end of 70s and the beginning of 80s, the market demand for Nike was so huge that 60% of its 8000 department stores, sporting goods stores and shoe store distributors had ordered ahead of time, and often waited for half a year for goods to arrive.

This provides great convenience for Nike's production plan and inventory cost plan.

Nike's sales volume was $14 million in 1976, rising to $640 million after six months.

Nike's market share is 33%, the highest share of the market.

Two years later, it is far ahead and its market share has reached nearly 50%.

Adidas's market share has been reduced, not only much lower than Nike, but also the US companies like Brook and new ones have become worried rivals.

In "Forbes" published in January 4, 1982, "American industry annual report" ranked Nike as the most profitable company in the past village year, ranking first in the industry.

Three, Nike's success factor is no doubt that Nike is facing very favorable initial demand in the 70s.

Nike has taken advantage of this advantage.

In fact, most of the shoe manufacturers gained considerable income during these years.

But Nike's success is far from simply relying on favorable initial needs.

Nike beat all rivals, including the then dominant Adidas company.

The success of Nike has uncovered the mystery of these foreign manufacturers, such as Adidas, Puma and tagel.

By giving full play to its potential, Nike has produced more products than Adidas, creating a variety of shoes.

Too wide production range may cause a lot of trouble. It may also damage the efficiency of production due to the excessive production scope, thus greatly increasing the cost.

Many people kindly suggest that the company should narrow its production scope, cut off those hard products, concentrate on manpower, material resources and attention, and strive to win in the competition.

Here we can see that Nike has not adopted such a strategy, but it has become one of the most successful companies in 70s. Obviously, its business strategy is different from Adidas's.

What is a strategic product mix?

Although Nike may violate some product mix concepts, let us see how it violates and at what cost.

By offering products of different styles, different prices and various uses, Nike has attracted a variety of runners, making them feel that Nike is the most comprehensive running shoe manufacturer.

The idea of millions of runners with all kinds of abilities is an attractive image in a fast growing industry.

Moreover, in the rapidly expanding market, Nike has found that it can expand its broadest high-rise with its wide variety of products.

It can sell shoes to flexible retailers, such as department stores and shoe stores, and can continue to do business with special shoe stores.

The company is the only company that can properly take care of the sale of some Nike shoes.

A wide variety of products, the smallest production of each product, will generally increase the cost of production.

But for Nike, this may not be a big problem.

Most of the production of shoes has been contracted out - about 85% contracted to foreign factories, most of which are factories in the Far East.

Because many foreign factories produce some products according to the contract, the small production of various products is an insignificant economic obstacle for Nike.

Long ago, Nike began to attach importance to research and development and technological innovation. The company is committed to seeking lighter and softer running shoes, which not only maintain the wear of the users, but also give athletes, world-class athletes or amateurs, the most advanced products that can be produced by running shoes.

Nike attaches great importance to the research and development of new products. It highlights the fact that it employs nearly 100 researchers and specializes in research work. Many of them have degrees in biomechanics, experimental physiology, engineering technology, industrial design, chemistry and related fields.

The company has also hired research committees and customer committees, including coaches, athletes, equipment operators, foot doctors and plastic surgeon, who regularly meet with companies to review designs, materials and ideas for improving athletic shoes.

Its specific activities include high-speed photography analysis of the human body in motion, analysis of athletes' treadmill, planned Nike experiment for more than 300 athletes, and testing and development of new running shoes and improvement of original running shoes and materials.

The cost of product research, development and testing in 1980 was about $2 million 500 thousand, and the budget for 1981 was nearly US $4 million.

For such a very ordinary thing as shoes, such a major research and development work is unprecedented.

In terms of its management strategy, Nike has not been very innovative. In many respects, it has followed the recognized successful market strategy of the shoe industry established by Adidas decades ago.

These strategies are mainly concentrated on testing and developing better running shoes; expanding the production line to attract consumers from all aspects of the shoe market; invent clear signs that can be immediately identified on all products; and use the display products of famous athletes and major sports competitions.

Even the majority of production tasks are contracted to low cost foreign processing plants, not just by Nike companies.

But Nike has been able to use these proven skills to operate better than any rival or even Adidas.

The success of Nike is mainly due to its innovative research on sales, or because it has found sales opportunities that no one has seen, or has invested more money in marketing and advertising than those who are not lucky enough.

The key factor for Nike's success is effective imitation.

Of course, imitation must be prudent.

The emulated market strategy should be the most effective and strategically important achievement in history.

As far as the running shoe market is concerned, the market strategy that Adidas has implemented for a long time is to produce shoes of various models, to let athletes wear products with company logo and to constantly upgrade products in major sports competitions. This is almost a market strategy that can not be changed. All running shoe manufacturers follow the same strategy - Nike is just doing better.

A company's effort to imitate is to develop its own personality.

Credibility does not mean making products that are exactly the same as others.

Only those successful decisions, standards and behaviors should really be emulated.

In addition, we must fully develop our distinctive personality characteristics and markings, and establish organizations and management departments that are good at seizing all kinds of new opportunities.

Finally, we can see the fragility of the so-called market dominance and the first place in the market.

Any company, whether in the leading position of the market, can not rely on its reputation and ignore the developing external environment and the strong opponent's offensive.

Adidas has played a leading role in shoemaking industry, just like the position of international business company in the computer industry.

But Adidas relaxed its vigilance and weakened the offensive at a critical moment.

People who run in front of the competition are easy to be complacent and arrogant. What we see here shows this.

With the rapid growth of market demand, the company relaxed its vigilance.

During this period, the sales volume of the shoemaking industry leader rose rapidly, which complacent and self satisfied.

But this rapid growth of sales may mask the downward trend of marketing, and competitors are embezzling the interests of the dominant company to gain significant benefits.

In the end, the advantages turn to one or more powerful competitors.

The previously dominant company may no longer be able to make a comeback and take the lead.

The success of a company may be the result of another company's mistake -- rather than being replaced by someone else rather than being dereliction of duty -- not taking or at least late to take the necessary action.

There are many aspects of Nike's success, but its most notable feature is its successful business strategy. It shows in 2 aspects: 1 and virtual operation.

Because of the wide variety of market demand, many varieties and models are special and the demand is relatively small. If they are all produced by themselves, the production cost of Nike will rise. Nike will focus on the design, and the specific production will be contracted to the manufacturers of countries and regions with low labor costs, so as to reduce the production cost and eliminate the economic obstacles that ordinary enterprises may encounter.

2, imitation strategy.

Many people think that determining business strategy is very difficult and risky.

While Nike has imitated Adidas's successful business strategy in many ways, it is stable and has a high probability of success.

This strategy is right.