5.1 Strategies of Nike:
In order to become the world’s leading designer, marketer and distributor of athletic footwear, appareland accessories, Nike followed many strategies. Their corporate level strategy, according toDermesropian, Drage, Grigaite and Lopez (2004,p.15) is their focus on innovation and emphasis on their research and development department in order to be profitable in the long run and they do their best to produce footwear, apparel and athletic equipment that reduce or eliminate injury, help in athletic performance and maximize comfort. They continue to expand their operation in the USA, Asia Pacific,Europe, Middle East, Africa and the American regions trying to reach as many customers as possible.Their business level strategy is a combination of the best cost provider and broad differentiation strategy, but more emphasis is put on the best cost provider strategy. They rely heavily on strategic outsourcingand most of their products are manufactured outside the United States. One of the main reasons behindtheir success following the cost leadership strategy is their extensive network structure that allows them tocancel their alliance with any company that fails to maintain their standards. They work very closely withtheir suppliers which allow them to produce their goods at a very low price and of superior quality withthe newest technology which makes them the market leader and the rest have to try producing similar goods close to their standard in order to survive in the market. They work very hard in their marketingstrategies and which one of the primary reasons behind its success.