Ansoff Matrix of Nike 

Nike is an American sportswear apparel and equipment-producing multinational company. Phill Knight and Bill Bowerman founded the sportswear brand in 1964. Today, we’ll discuss the Ansoff matrix of Nike and; four growth matrix strategy analysis quadrants; market penetration, market development, product development, and diversification of the Ansoff matrix business example.

Elements of Market Penetration Strategy of Nike

• Storytelling advrtisement campaigns to emotionally connect with the customers
• Launched historic TV commercials and historic campaigns
• Sponsoring mega sporting events like Olympic Games and and Football Worldcup
• Collaborating with sports celebrities for brand endorsments
• Influencer marekting to approach new segements and areas of the markets

Top Selling Markets and Geographical Regions of Nike

• North America – 21.61 billion USD
• Europe, Middle East, Africa – 13.5 billion USD
• China – 7.2 billion USD
• Asia Pacific and Latin America – 6.5 billion USD
• Worldwide – 58 million USD

Latest and Best Selling Collection of Nike

• Nike Air Max 270
• Air Force 1
• Nike Dunk Low Retro
• Air VaporMax Nike
• Flyknit shoes
• Blazer Nike
• Infinity RN 4 Nike
• Sportswear Tech Fleece
• V2K Run
• Zoom Vomero

The Ansoff matrix of Nike would focus on the four growth matrix strategy analysis quadrants; market penetration, market development, product development, and diversification. Here’s the Nike Ansoff matrix company example as follows;

Ansoff Matrix of Nike 

Let’s discuss the four growth matrix strategy analysis quadrants in the Ansoff matrix of Nike as Ansoff matrix company example of a sportswear brand; they’re as follows;

Market Penetration Strategy of Nike

The market penetration quadrant in the Nike Ansoff matrix business example as growth matrix strategy analysis has the lowest risk level in the growth strategy. It is because here the sportswear brand sells its current products and services in the existing customer market. However, the sports market is growing, and the market penetration growth strategy is possible.

I-Aggressive Marketing

Nike runs aggressive marketing and advertisement campaigns for the promotion of its existing products and services to the existing customers market. In order to amplify the company’s market reach and attract the attention of customers, the sportswear brand employs various media channels, print media, TV, digital and social media platforms and channels.

II-Sponsoring Events

Along with aggressive marketing and advertisement campaigns, Nike sponsors various types of sporting events across the world. They help the company to promote its sportswear products and increase brand exposure by connecting with new potential users.

II-Brand Ambassadors

Nike also hires the world’s leading sportswear celebrities and public figures as its brand ambassadors. They have a huge fan following, and their market influence helps the company to promote its brand image and sportswear products.

IV-Promotional Discounts

Nike is a premium sportswear brand and the company offers promotional discounts on certain events and occasions to attract the attention of customers. They help the company to increase the sale of its existing products in the current customer market.

Market Development Strategy of Nike

The market development quadrant in the Nike Ansoff matrix business example as growth matrix strategy analysis has a bit higher risk level than the market penetration strategy. It is because here you expand your sportswear market and offer your current product portfolio in the new market. However, you don’t know the culture and response of the new market; that’s what makes it riskier.

I-Market Expansion

Nike has been increasing its customer market and entering new geographical regions as a part of its global brand expansion plan. The new markets help the sportswear brand to increase the sales of its existing products.

II-Low Price Variants

In order to increase the market acceptance rate, the sportswear brand offers lower price product variants in developing countries. This strategic approach helps the company to amplify its market share.

III-Distribution Channel

Nike has a very strong supply chain and distribution network; it helps the sportswear brand to offer its existing products and services in new markets across the globe.

IV-Brand Stores

Along with selling its products in its retail stores, Nike also sells its products and services online, authorized branded stores, and other retail stores. Multiple retail selling options help the company amplify its sales and market reach.

Product Development Strategy of Nike

The product development quadrant in the Nike Ansoff matrix business example as growth matrix strategy analysis has higher risk than the market penetration strategy. It is because here you launch a new product service in the sportswear line for the existing customer market. You would have to run new marketing and promotional campaigns for the new product and it makes it riskier.

I-Research & Development

Nike has earned a worldwide reputation for its quality products, unique features, and innovative and smart designs. In order to achieve all of this, the sportswear brand invests a significant amount of capital resources in its new product development. The innovative designs and features help the company to gain a competitive edge in the market.

II-Product Variants

Nike manufactures different product variants to target various segments of the customer market. The company develops high-quality and premium features for the premium customers; and affordable quality for the price-conscious customers in different markets.

III-Customer Feedback

Nike pays heed to customer feedback and reviews in its product development process. It allows the company to make adjustments to the existing and launch a new and improved product better than the previous versions.

Diversification Strategy of Nike

The diversification quadrant in the Nike Ansoff matrix business example as growth matrix strategy analysis has the highest risk rate of growth strategy than all three previous growth strategies. It is because here you launch a new sportswear product or service in a new customer market. You won’t know how your new market will react to the new items.

I-Horizontal Diversification

Nike has been increasing its product portfolio ever since its foundation. The sportswear brand offers a vast variety of products and services in its portfolio ranging from apparel, footwear, accessories, and sportswear equipment.

Speaking of diversification and market expansion, the sportswear brand should consider entering into the automobile industry, consumer goods, and electronics as a part of horizontal diversification.

Conclusion: Nike Ansoff Matrix Company Example |Growth Matrix Strategy Analysis 

After an in-depth study of the Ansoff matrix of Nike; we have realized that Nike is the world’s leading sportswear manufacturing company. If you are learning about the Nike Ansoff matrix business example; then you should keep in mind the abovementioned four growth matrix strategy analysis quadrants; market penetration, market development, product development, and diversification.