1) What business-level strategies is Nike pursuing?

When Nike first started its business ventures, they used a focused strategy and its main goal was to
create a new shoe that would enhance a runner’s traction and speed. It then began to look at other
sport segments and broadened its designs to basketball shoes. Nike currently uses a differentiation
strategy and designs several different shoes for many market segments such as soccer, golf, and tennis
and recently purchased other footwear companies that offer shoes that extend or complement its
product lines.

2) How have Nike’s business-level strategies changed the nature of industry competitions?

Nike’s business-level strategy has two original functional strategies: to innovate state of the art athletic
shoes and then to publicize the qualities of its shoes by dramatic marketing. By applying the product
differentiation strategy, Nike has attained a great deal of consumer insight, which is used to offer
uniquely designed and stylish products to athletes. The company focuses a great deal on its research
and development, which is one major contributor to its uniqueness.