This paper analyzes the competitive strategies of Nike and New Balance.
Written in 2007; 3,260 words; 13 sources; MLA; $ 93.95
Paper Summary:
This paper critically examines the current competitive strategies of Nike and New Balance and analyzes whether an organization can simultaneously follow a cost leadership strategy and a differentiation strategy. The paper compares the various approaches used in both organizations in light of the five generic competitive strategies as laid out by Michael Porter. The paper concludes that Nike and New Balance cannot implement both a cost-leadership strategy and a differentiation strategy in each of their businesses. The paper relates that under Porter's analysis, both companies will continue to be successful in the future.
Outline:
Introduction
Brief Overview of Nike
Brief Overview of New Balance
Competitive Forces Model (Porter)
Entry of Competitors
Threat of Substitutes
Bargaining Power of Buyers and Suppliers
Cost Leadership Strategies and Differentiation Strategies as Competitors
Differentiation Strategy
Conclusion
From the Paper:
"In the past few years, competition among organizations that manufacture and sell athletic apparel and athletic shoes has dramatically increased. As a result, competitive strategies have emerged as key factors in determining the long- term success or ultimate failure of such organizations. Two large rival companies that have demonstrated extreme success as well as periods of instability and weak sales are Nike and New Balance. An analysis and comparison of their cost leadership strategy and differentiation strategies provides a clearer picture of what types of competitive strategies are essential for an organization to survive in today's cut-throat economy."
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