Product differentiation is present when consumers perceive a certain firm's product to have more value than another firm's product. While their offerings may have very subtle to extreme differences, it all comes down to consumer perception. it's all about standing out from the crown. Niek sets itself apart by offering high quality sportsware that is deemed to be top of the line or exclusive to only the best athletes. This perception makes consumers willing to pay higher prices because they perceive that they are paying for a higher quality product as a result of the brand name . Nike is considered the standard. They are selling an ability, not just a product. Consumers believe "if you have x Nike product, you will perform better". This strategy is very effective. https://www.cleverism.com/stand-crowd-examples-differentiation/
Diversification is critical for companies that have obtained success in particular industry and are looking to grow, expand, and avoid stagnation. A company that is Nike's size, is expected to have diverse production offerings. While Nike functions in the sporting goods industry, it does not just offer one type of sporting good such as apparel or equipment. Nike offers a diverse spread of goods to its consumer. industry is sporting goods, it offers so many different types of sporting goods from sports equiptment, to fitness bands, to water bottles, apparel ,and so much more. No matter the product, Nike's strategy is to market all of its products as the best in the business. This diverse product offering allows Nike to avoid putting all its eggs in one basket in case a division of its company fails or declines significantly. It has a lot of other profitable options to turn to for revenue if the time came. https://www.scribd.com/doc/242601885/Diversification-Strategy-of-Nik
Hello readers and fellow bloggers, My name is Rosalind Cooper, and I have been tasked with developing a blog for my MGMT 7160 class following the happenings of a company of my choosing. As graduation is only three months away, I look forward to using this creative outlet to express the business savvy I have accumulated over the course of my studies in pursuit of my Masters of Business Administration. Happy blogging! -Roz
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