The global athletic footwear market is expected to experience only very slow growth over the next several years. Nike is the market leader. According to Boston Consulting Group portfolio analysis, how should Nike treat its athletic shoe business?
A)Nike will probably have to invest heavily in the athletic shoe business, including extensive promotions and new production facilities.
B)Nike should consider exiting the athletic shoe market.
C)Nike should stop investing in its athletic shoe business; it has already reaped all the benefits it is likely to receive.
D)Nike's athletic shoe business still requires some investment, but it is likely to produce excess resources that can be invested in other divisions of the company.
E)Nike should invest in the athletic shoe market only if it helps boost the sales of other products in fast-growing markets.

Question

Quizplus · Accepted Answer

According to Boston Consulting Group portfolio analysis, Nike's athletic shoe business is likely to produce excess resources that can be invested in other divisions of the company. While some investment is still needed, Nike can prioritize investing in other divisions that may have more potential for growth. Exiting the athletic shoe market or solely investing in it for the sake of boosting sales in other markets would not be the best strategic decision for Nike.

The Global Athletic Footwear Market Is Expected to Experience Only