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I have had a lot of questions regarding the differences between two of Nike’s new awesome shoes. Nike use vertical integration price strategy in which they take ownership of the participants at channel level that differ and they also engage in various channel level operations both to control costs and thus influence the pricing function (Goldman S, 2000, pp154).
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This program represents the first time a company has offered mass footwear through the Internet and provides competitive advantages to Nike. Nike makes contracts with some celebrity athletes which can draw attention to their products such as Tiger Woods, Ronaldo. Besides that, Nike also employed a large amount of advertisements through the mass media (Goldman S, 2000, pp 154). Nike targets on the consumers who care more about the utility and quality of the products rather than the price.
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