To what extent has Nike’s e-marketing strategy increase their customer base?
Business Management
Higher Level – Extended Essay
To what extent has Nike’s e-marketing strategy increase
their customer base?
Word Count: 3,995
1
,To what extent has Nike’s e-marketing strategy increase their customer base?
Table of Contents
INTRODUCTION ..................................................................................................................... 3
METHODOLOGY .................................................................................................................... 4
SOURCES OF INFORMATION....................................................................................................... 4
LIMITATION OF THE SOURCE ...................................................................................................... 4
ANALYTICAL TOOLS ................................................................................................................... 5
BODY ........................................................................................................................................ 5
NIKE’S MARKET ......................................................................................................................... 5
E-MARKETING STRATEGIES USED BY NIKE ............................................................................. 7
SOCIAL MEDIA MARKETING ...................................................................................................... 7
COMPETITOR COMPARISON: ADIDAS...................................................................................... 11
STRATEGIC ALLIANCE WITH GAMING COMPANIES .................................................................. 13
FORTNITE X JORDAN ............................................................................................................... 13
NIKE-LAND (NIKE X ROBLOX).................................................................................................. 16
SPONSORSHIPS ........................................................................................................................ 19
SPORT EVENTS ........................................................................................................................ 20
FUTURE STRATEGY - .SWOOSH............................................................................................ 21
ANALYSIS TOOLS .............................................................................................................. 22
SWOT ANALYSIS ON .SWOOSH .......................................................................................... 22
ANSOFF MATRIX ...................................................................................................................... 24
BOSTON MATRIX...................................................................................................................... 25
CONCLUSION ....................................................................................................................... 27
BIBLIOGRAPHY ................................................................................................................... 28
APPENDIX ............................................................................................................................. 33
2
,To what extent has Nike’s e-marketing strategy increase their customer base?
Introduction
Throughout this essay, the research question “ to what extent has Nike’s e-
marketing strategy increase their customer base?” will be answered. Nike is an
American multinational corporation and was founded in 1964 by Phil Knight and Bill
Bowerman. Nike is 58 years old, making it one of the oldest companies with a
significant amount of experience and one of the most successful companies in the
world.
Nike is now the world’s largest supplier and manufacturer of athletic shoes and other
sports equipment in the sports equipment industry, leading to a high level of industry
knowledge, allowing them to have competitive advantage over their main
competitors such as Adidas, however, to gain more competitive advantage in our
modern world, Nike has started to invest in “The Metaverse1”(Oup.com, 2020) and e-
marketing to increase their customer base and grow their business.
This investigation will mainly focus on the topic of E-marketing, which is the
marketing of goods and services through the internet(Semrush Blog, 2022). It allows
business to boost their online presence and communicate with the public, advertising
online, which gives the business international reach and the ability to advertise 24
hours a day. This gives benefits such as a large group of potential customers,
reduction in costs, increase brand visibility making the business more productive,
competitive and cost effective(Hoang, 2018).
1
The Metaverse - a combination a several technological innovations that all operate seamlessly
together in a virtual-reality space in which users can interact with a computer-generated environment
and other users.
3
, To what extent has Nike’s e-marketing strategy increase their customer base?
In 2020, Nike set a goal to increase their sales of output by 2023, mainly focusing on
e-commerce sales to represent 30% of the total revenue. Starting in 2020, Nike
started ending contracts with wholesale outlets, aiming to reduce to only 40
wholesale outlets by 2023(Reasons, 2022).
This essay will explore the different type of e-marketing strategies Nike has used to
gain a competitive advantage over its competitors. This includes internal and
external factors, such as trends in technology and competitor analysis of their rival
company Adidas. Attempts will be made to understand the role of Adidas in driving
Nike to increase their customer base. It is worth to investigate the research question
because e-marketing is becoming more permanent in the world as it has a direct
relationship with the advancement of technology, such as “The Metaverse”. Business
are changing their marketing strategy to e-marketing to attract and maintain existing
customers. This will assist the company and brand to remain competitive in the
future.
Methodology
Sources of Information
The sources of information that will be used to gather information will mainly be
secondary data. Specifically I will read academic papers using Google scholar,
blogs, news articles, financial records, annual reports, official IB Business and
Management textbook and e-marketing strategies used by the business, as
primary data may not be accurate and biased to collect, while secondary data
can also provide multiple insights to the topic.
Limitation of the source
- Annual Reports has the potential to be biased as they are released by the
company itself giving it the possibility of being inaccurate based on the
4
Business Management
Higher Level – Extended Essay
To what extent has Nike’s e-marketing strategy increase
their customer base?
Word Count: 3,995
1
,To what extent has Nike’s e-marketing strategy increase their customer base?
Table of Contents
INTRODUCTION ..................................................................................................................... 3
METHODOLOGY .................................................................................................................... 4
SOURCES OF INFORMATION....................................................................................................... 4
LIMITATION OF THE SOURCE ...................................................................................................... 4
ANALYTICAL TOOLS ................................................................................................................... 5
BODY ........................................................................................................................................ 5
NIKE’S MARKET ......................................................................................................................... 5
E-MARKETING STRATEGIES USED BY NIKE ............................................................................. 7
SOCIAL MEDIA MARKETING ...................................................................................................... 7
COMPETITOR COMPARISON: ADIDAS...................................................................................... 11
STRATEGIC ALLIANCE WITH GAMING COMPANIES .................................................................. 13
FORTNITE X JORDAN ............................................................................................................... 13
NIKE-LAND (NIKE X ROBLOX).................................................................................................. 16
SPONSORSHIPS ........................................................................................................................ 19
SPORT EVENTS ........................................................................................................................ 20
FUTURE STRATEGY - .SWOOSH............................................................................................ 21
ANALYSIS TOOLS .............................................................................................................. 22
SWOT ANALYSIS ON .SWOOSH .......................................................................................... 22
ANSOFF MATRIX ...................................................................................................................... 24
BOSTON MATRIX...................................................................................................................... 25
CONCLUSION ....................................................................................................................... 27
BIBLIOGRAPHY ................................................................................................................... 28
APPENDIX ............................................................................................................................. 33
2
,To what extent has Nike’s e-marketing strategy increase their customer base?
Introduction
Throughout this essay, the research question “ to what extent has Nike’s e-
marketing strategy increase their customer base?” will be answered. Nike is an
American multinational corporation and was founded in 1964 by Phil Knight and Bill
Bowerman. Nike is 58 years old, making it one of the oldest companies with a
significant amount of experience and one of the most successful companies in the
world.
Nike is now the world’s largest supplier and manufacturer of athletic shoes and other
sports equipment in the sports equipment industry, leading to a high level of industry
knowledge, allowing them to have competitive advantage over their main
competitors such as Adidas, however, to gain more competitive advantage in our
modern world, Nike has started to invest in “The Metaverse1”(Oup.com, 2020) and e-
marketing to increase their customer base and grow their business.
This investigation will mainly focus on the topic of E-marketing, which is the
marketing of goods and services through the internet(Semrush Blog, 2022). It allows
business to boost their online presence and communicate with the public, advertising
online, which gives the business international reach and the ability to advertise 24
hours a day. This gives benefits such as a large group of potential customers,
reduction in costs, increase brand visibility making the business more productive,
competitive and cost effective(Hoang, 2018).
1
The Metaverse - a combination a several technological innovations that all operate seamlessly
together in a virtual-reality space in which users can interact with a computer-generated environment
and other users.
3
, To what extent has Nike’s e-marketing strategy increase their customer base?
In 2020, Nike set a goal to increase their sales of output by 2023, mainly focusing on
e-commerce sales to represent 30% of the total revenue. Starting in 2020, Nike
started ending contracts with wholesale outlets, aiming to reduce to only 40
wholesale outlets by 2023(Reasons, 2022).
This essay will explore the different type of e-marketing strategies Nike has used to
gain a competitive advantage over its competitors. This includes internal and
external factors, such as trends in technology and competitor analysis of their rival
company Adidas. Attempts will be made to understand the role of Adidas in driving
Nike to increase their customer base. It is worth to investigate the research question
because e-marketing is becoming more permanent in the world as it has a direct
relationship with the advancement of technology, such as “The Metaverse”. Business
are changing their marketing strategy to e-marketing to attract and maintain existing
customers. This will assist the company and brand to remain competitive in the
future.
Methodology
Sources of Information
The sources of information that will be used to gather information will mainly be
secondary data. Specifically I will read academic papers using Google scholar,
blogs, news articles, financial records, annual reports, official IB Business and
Management textbook and e-marketing strategies used by the business, as
primary data may not be accurate and biased to collect, while secondary data
can also provide multiple insights to the topic.
Limitation of the source
- Annual Reports has the potential to be biased as they are released by the
company itself giving it the possibility of being inaccurate based on the
4
