Business-Level Strategies of Nike

In the specific industry of market segment, the business-level strategies of the companies mainly emphasize on the establishment of the competitive position of the company in the related industry. The business level industries of the companies work mainly in two forms, competitive strategies and corporative strategies. When some leading companies follow their specific business-level strategy, then it causes changes in the nature of the competition level in that particular industry.

Nike is a global company, which deals in the process of designing, developing and marketing of the apparels, sports products, footwear, etc. The products of the company have their recognition at global level (Nike, 2010). The company owns a leading position as a supplier of the sports products in the international market. Though the apparels and sports equipment industry is quite large, but Nike has possessed immense competition in this industry due to its unique business level strategy.

Nike's business-level strategy is an important component of the successful business of the Company. The main focus of the business strategy of the company is on brand of the products. Brand position is the main concern in the overall business process of the Company. The business level strategy of Nike encompasses the overall position of the company's business in its related market. The business-level strategy of the company has put is on a competitive position as well as has changed the nature of the industry competition. There are three main components of the business level strategy of Nike, namely cost leadership, management of industry segment and product differentiation (Nike, 2004).

//After having a brief overview of the business-level strategy of Nike, in the next section of the paper, we are going to analyze the way in which its business-level strategy has changed the nature of industry competition.//

Role of Nike's Business-Level Strategy in Changing the Nature of Industry Competition:

Product Differentiation: As product differentiation is one of the major components of Nike's business-level strategy, the company has great consumer insight. To offer uniquely designed premium products to the athletes, the company focuses on research and development on a great level. This has transformed the competition level in this competitive industry. All the consumers are opting only branded sports products as well as apparels. As the brand name of Nike has become a leading one in the industry, the other companies are also focusing on brand development to cope up with the increasing level of competition. Brand maintenance has become the main target in this industry due to such product differentiation made by Nike. As Nike deals in large range of products in its business through which it gains a balanced level of profits, this has made the other companies to initiate new range of products in their business. Previously these companies were having potential risk of failing the single product in the new market and thus, they were getting risk in the business success. Due to the impact of Nike's business strategy, the other companies are also enlarging