Question

Nike Big Data Management

With the analysis on the business of this leader in the sports industry, it indicates that NIKE is facing a problem in how to market their customers in a more customized way in order to regain the market share for the young market especially.

According to the 5-forces, Nike is suffering from the great level of competitive rivalry in a saturated market. People within this market have very low cost in switching to other brands while competitors are having similar features on their products. Obviously, NIKE’s young market is losing loyalty to it, while Adidas, New Balance and Puma in sports and Vans, Converse and Supreme in streetwear performance are gaining momentum. It is possible to say that they are not only competing on shoes and clothes but also technologies and stylish design nowadays as customers and even retailers have so much to choose from.

On the other hand, NIKE seems to be ignoring some speciality sports retailers while retailers have deep ties to the young market and community. They act an important role in the distribution chain to help promote the brands. NIKE has to closely work with its retail partners like Foot Locker and even more on its 200+ NIKE stores or other speciality sports retailers.

Moreover, young customers usually go to these stores looking for advice on fitting and matching which means stores seriously affecting teenagers’ selection. In this case, the taste and value of the young customer may have been changed a lot in these couple years due to the influence of social media. Therefore, to regain larger market share and create higher profit, NIKE can use BDA on issues like “The most influential athlete to teenagers'', “The fashion color of the coming year”, “Hot icon or images in the world”, “How many hashtags on the product” and “Most popular Internet celebrity” etc. Although NIKE have been innovative for a long time and equipped with advanced technologies, only further customized marketing can take it up to a notch.

- Please write considerations in developing a Strategy for Integrating Big Data Analytics into the selected company. (1500words)

Answer 1

“Nike” Company:

Nike follows the competitive strategies of the “Product differentiation”, “Focus on market niche”, and “Strengthen customer and supplier intimacy” to improve the competitive strategies among its competitors.

Reasons:

Nike is the leading sports Clothing and Footwear Company in the world, and it provides the various varieties of designs, development, and sells of “products and services” in basket-ball, soccer, running training for girl’s and boy’s, and also help in other sports actions.

It provides the great agreement of separating the “products and services” that remains the customers and coming again and again for getting the enhanced products, than its competitors by following of “Product differentiation” strategy.

• “Product differentiation” strategy is used to separate the products by using the system information and allow the new products.

It contains strong reputation for constantly develop the new “products and services”, which makes the strong and hard for competitors to come up by following the “Strengthen customer and supplier intimacy” strategy.

• “Strengthen customer and supplier intimacy” strategy is used to develop the strong tie-up with consumers and sellers by using the information system.

Nike really needs to help the specific type of customer, like athlete by following the “Focus on market niche” strategy.

• “Focus on market niche” strategy is used to focus the specific market place or specialized place by using the information system.

It embeds many technologies in its “products and services” are interrelated to others. Therefore, it increases the cost for its customers. It does not follow the competitor strategy of “Low-cost leadership”.

Relating information technology to the strategies:

Nike’s leading-edge products design and manufacture has been using the “Information technology”.

Nike’s sells the customized footwear’s through its “NIKEiD” program that is, information technology in their website.

• It follows the “Product differentiation” competitor strategy to differentiate the footwear models based on colors, materials, and bands.

Nike’s offers the new products with strong reputations for its customers, by using the information technology in their websites.

• It follows the “Strengthen customer and supplier intimacy” competitor strategy to develop the new products again and again such as NikeFuel is the enhanced product of the FuelBand.

Nike’s constantly working to help the athlete peoples by improving the new products using information technology in their websites.

• It follows, the “Focus on market niche competitor strategy” to focus the sports Clothing and Footwear’s.

Therefore, Nike’s uses the “Information technology” to keep the customers coming again and again for its products with Nike’s website and Apps.

In terms of generic strategies, it utilizes cost leadership , focus and differentiation in different context of its business. It offers low cost products to the US and other global customers by cutting its cost . In terms of differentiation, it offers sports shoe , apparel and other accessories to the global sports fans. In terms of focus, we can say it has focus on only sport and running shoe but not the corporate like shoe in traditional black or brown shoe. It focus only in sports wear sector of USA and world. In terms of corporate strategy, it has adopted the multinational format to grow its business with intensification as a core strategy.

I have done differently to evaluate the Nike's performance. In my observation the Nike's performance, i have analyzed that It has understand the need of its customers specially the sport person . It sponsors sports events across the globe. It has unique features in its customer social responsibility framework. I used a different style of business endeavor by adopting mass distribution of products. Even , diversification of business will be done in the sector like healthcare, education, manufacturing technologies, sport entertainment etc.

My strategy has greater potential to tap the market share. I will earn a lot of money by aggressively selling our footwear, clothing and other products related to global customers. I used to sell via e- commerce channels like Amazon, e-bay etc. Our products will be available through online and offline channels.

With the growing demand of personalized products according to their lifestyles and support when deciding on the products according to client needs and lifestyles, the development of a strategy for the incorporation of big data analytics within the selected company is important. Nike competes with other retailers who offer their customers personalized attention in their purchases.

Nike also released its own Nike app, which allows customers to get their sneakers in various models, purchase timings and notifications. The organization uses the customer data to help manage the website as well as educate its customers. The app allows consumers to take pictures of their shoes and purchase them to purchase the items online. Big knowledge is important in the competitive footwear and sportswear sector of a global player such as Nike. His shoe is mainly performance focused and needs to be sponsored and input from customers to manage its portfolio.