Assignment: Effective Organisations
USING A COMPANY OF YOUR CHOICE, EXAMINE THE POTENTIAL OF ONE INTANGIBLE ASSET TO IMPROVE ITS COMPETITIVE POSITION.
Nike – “Just Do It”
To address this assignment our group will begin by providing a background to the company we have chosen which is Nike. Nike has many intangible assets in the form of skilled personnel, distribution agreements, special company procedures and patents – however the intangible asset we wish to focus on for the purpose of this assignment is the Nike brand, an asset that has been developed and built upon over several years.
This will then lead us to examine and analyse how the brand is linked to the company itself and allow us to identify how this improves their competitive advantage.
We will conclude with suggestions and recommendations as to the potential of brands and the power they have.
The Nike story began in 1962 with its founder, running enthusiast Phil Knight. At this time the athletic shoe industry was dominated by two German companies, Adidas and Puma. Knight recognised a neglected segment of serious athletes whose needs were not being addressed. The concept was simple – to provide high quality running shoes designed for athletes by athletes.
Knight began to sell athletic shoes - he spoke to athletes, shared his passion for running, listened to feedback and began designing innovative footwear for serious athletes and the American consumers. By 1980, Nike had become the number one athletic shoe company in the United States.
Rival competitors positioned themselves to take advantage of the aerobics craze and companies like Reebok and LA Gear soon gained ...