"Borrowing chickens to lay eggs" to occupy the market ―― The business strategy of American shoe king Phil Nike
In the modern society with increasingly integrated world economy, any enterprise occupying a vast overseas market will be in an invincible position. but
With the increasingly fierce competition in the world market, trade protectionism is on the rise in various countries, and tariff barriers are high and unpredictable. However, the American "Nike Company" was able to break down strict barriers and make its brand-name products sell well in every corner of the United States, Europe, Asia, Africa and Australia. In just ten years, this little-known company has become the largest shoemaking company in America. Is there any secret weapon for Nike to successfully enter the world? Yes, this is its "borrowing chickens to lay eggs" strategy.
Get the patent first. Nike is popular in America.
The boss of Nike company is named Phil Nike, who is very business-minded. 1972, he got a message: William Delman, a professor of physical education at Oregon State University in the United States, designed a new type of sports shoes, which are very elastic and moisture-proof. At that time, not many people knew about it and paid attention to it. Nike ran to have a look and immediately concluded that the invention had great prospects. Because according to his investigation, with the improvement of people's living standards, fitness activities will be paid more and more attention. America has a middle class with higher income. They like to take running as an essential exercise every day. These people are the main force in the sports shoes consumer market. They require not only good quality shoes, but also comfortable and beautiful shoes. The new sports shoes designed by Professor William Delman just meet the needs of these middle classes and will surely sell well all over the world.
. So, Phil Nike did not hesitate to take the lead, invested in the patent of William Delman, and quickly organized production and put it on the market. Because of its unique design, novel shape and accurate market forecast, "Nike shoes" became very popular as soon as it was launched.
, is in short supply. The jubilant Nike expanded its success and soon launched "Nike series products"-Nike Alumni Association sports shoes, Nike tennis shoes and so on. Nike shoes not only have the advantages of innovative design, but also have clever promotion skills to seize the opportunity. They were popular in America for a while, and soon defeated their rivals and won the American market.
"Borrowing chickens to lay eggs" operates skillfully, and "Nike" occupies the whole world.
After gaining a firm foothold in China and accumulating considerable capital, Nike began to enter the world market. He believes that we must first enter the European market and the Japanese market, and then gradually expand to the world. There are two problems here: first, all countries have trade protection measures to restrict the import of foreign goods; Second, countries have different levels of economic development and people's living standards. We should consider the appropriate price so that people in need can afford it. Phil Nike put forward the strategy of "borrowing chickens to lay eggs" to solve these two problems. The so-called "borrowing chickens to lay eggs" means using the famous brand "Nike shoes" to negotiate with other countries to build factories, relying on local cheap labor and materials to produce Nike shoes by using Nike's exquisite design and advanced technology. In this way, first, we can avoid "imported goods" and avoid the restrictions of high tariffs; Second, local raw materials and labor can be used to save the cost of ocean transportation, so the cost will naturally be reduced and the price will be suitable for the people of that country. That is, by means of "borrowing chickens to lay eggs", Nike first set up a factory in Ireland to knock on the door of the European market; Then we set up a joint factory in Japan, which broke the exclusive fortress of Japan and made Nike shoes popular in Japan. After 1980s, in order to further reduce costs, FairNike began to March into developing countries and regions with low wages, cheap raw materials and vast labor resources. He signed contracts with Korean and Taiwan Province manufacturers, with Nike responsible for the design and the contracted manufacturers responsible for the production. The products are branded by Nike and then sold all over Europe and America.
. In the mid-1980s, he took aim at China and India, which were reformed and opened to the outside world, because these places had cheaper labor and more lucrative profits. In the 1990s, Phil Nike was optimistic about Vietnam and other Southeast Asian countries, invested and cooperated to build factories, and promoted middle-priced sports shoes to these areas, which was greatly welcomed by people in the third world. In this way, "Nike" went to every corner of the world step by step.
The business sea will never be calm, and there are reefs and dangerous beaches everywhere. When the market was weak and there was a sales crisis, Nike changed its business strategy in time and put forward a new idea of "product diversification". The so-called "diversification" means changing from the original production of a single series of "sports shoes" to the simultaneous production of children's shoes, casual shoes, work shoes, sports shoes and other varieties of products to meet the needs of customers of different ages, different spending power and different hobbies. The response was enthusiastic. Many families, men, women and children put on Nike, so they grabbed the market again and their sales soared. In that year, the total sales volume increased by 565,438+0% compared with the previous year, and the net profit soared by 96.
%。 From 65438 to 0980, Nike's turnover exceeded the two leading companies in the United States for many years; 198 1 year, Nike's share in the1500 million high-end shoe market reached 30%.
Sports stars advertise, and Nike is the icing on the cake.
A lot of "eggs" have been born by borrowing chickens, and these "eggs" have to be sold with the help of deliberately innovative marketing skills and advertising art. Phil Nike believes that "sports shoes" cannot be separated from "sports" and athletes cannot be separated from sports shoes. So Nike must make friends with athletes and let them serve Nike. First, solicit their opinions on product design to make it more targeted; Second, when new products come out, please try them on and become Nike's "inspector"; The third is to invite athletes to advertise. Therefore, the company spared no expense to give free sports shoes to athletes, shoes to famous university teams, donations to running workshops and organizations that organize professional ball games, and so on. At the Olympic Games, Nike not only set up advertising columns, but also formulated incentives. Whoever wins the gold medal in Nike sportswear and sneakers will be rewarded with a large sum of money. It's better to advertise with sports stars. Nike not only paid a lot of money to invite the famous Jordan to advertise, but also named products after Jordan, such as "Michael Jordan air cushion shoes", which had a great influence and sold well. 198 1 year, Nike spent180,000 yuan on advertising, and Jordan alone spent millions.