This benefits Nike in that they are able to produce these products at a very low cost and still receive a large profit for them.
Both apparel and hardware/equipment show to be products that bring in more money for the company than they require to make. The other quadrant where Nike’s products appear is cash cows. Assuming that Nike continues to maintain solid marketing and growth strategies for their footwear, it will remain a star product and continue to bring in a solid stream of revenue for the company. As Nike is regularly releasing new styles and partnering with famous influencers for new lines, it appears that they have a clear vision of upholding their reputation in the shoe game. It’s no surprise that footwear sits comfortably in the star quadrant as shoes generate the highest amount of revenue for the company and are the products that have the highest market growth rate. For the purposes of this BCG Matrix Nike’s products have been compared with those of Adidas, and broken up into three different groups: footwear (red), apparel (green), and hardware/equipment (purple).Īs shown in the matrix above Nike’s products currently only appear in two of the four quadrants, stars and cash cows. Nike continues to develop new products and lines to compete with other brands who are quickly becoming more and more popular such as Adidas, Puma, and New Balance.
Whether it be for fashion or function, the company has gained a stronghold on the industry utilizing the power of famous athletes such as Serena Williams, LeBron James, and Roger Federer to show just how great their products are. What simply began as footwear, Nike has quickly become the superior brand for sporting goods across the globe.
0 kommentar(er)
