The Nike Style Survival Mode
Being a legendary character, Phil Knight established Nike Company in 1972, which was rapidly forged into a leading brand among sporting products industry all over the world. What is more important is that Knight carried out the mode of “asset-light strategy” in 1980s, which has became a mainstream business model in global sporting goods business these days. Even if those conventional sports brands which have a hundred years history have to select the “Nike style” survival mode so as to follow with the spreading rhythm of Nike Corporation. With regard to this, Phil Knight said “the solely way to defeat Nike is to simulate us comprehensively and precisely, and then try to look out differences to destroy”.
In 1992, Chinese excellent gymnast, Lining founded a sports goods company with his own name, and Chinese sporting goods industry entered into “branding” developmental stage. However in the first ten years, most Chinese sporting goods manufacturers are just important OEM partners of Nike’s “asset-light strategy” pattern, therefore, a batch of OEM type factories with good manufacturing skills were created. In southeast, a costal city, Jin Jiang which belongs to Fujian province, there are close to 3000 footwear products manufacturing enterprises, with more than 300000 employees and with an annul output of 650 million pairs of shoes With an area of just 38.8 square kilometers, Chen Dai town is the prime Chinese and even worldwide sneakers’ production base. Nowadays, brands from Jin Jiang, such as, Anta, 361°, Deer Way, Jordon, JINAK have developed rapidly depending on the simulation of Nike and become important competitors in native Chinese sporting goods marketJust as what Phil Knight said, the competition of global sporting goods industry is more and more assimilated to “Nike model”. With Lining, Anta on behalf of China native sporting products businesses are also seeking the pattern of “asset-light strategy”, which implicates it will be increasingly difficult to exceed Nike.
From the competition of Nike with Reebok and Nike with Adidas, we could draw a conclusion: to imitate Nike Company is really an effective strategy to catch up with it, but intending to surpass Nike Company should not be applying mechanically what Knight identified.
Such as, by means of rising female sporting products market, Rebook exceeded Nike and through merging strategy, Adidas is rivaling with Nike worldwide and after completing worldwide management, Nike repelled Rebook, which all testify those innovative companies may gain active positions via taking efficient tactics on the basis of objective market.
One of Nike Company’s soft ribs was revealed in 1998 Asian financial crisis. For “asset-light strategy” model doesn’t relate to the procedure of concrete goods production, and this procedure was manufactured by Asian OEM factories, so two important managing problems could be aroused, and one is the management of supply chain, another is the controlling of goods’ quality. With the economic environment’s external fluctuation, Nike Company’s overall operating performances are affected by Asian OEM factories’ cost, delivery, logistics and so on.
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