The global athletic footwear market is expected to experience only very slow growth over the next several years. Nike is the market leader, with a market share of approximately 33 percent. 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 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 to boost the sales of other products in fast-growing markets.

Question

Quizplus · Accepted Answer

Nike should continue to invest in its athletic shoe business but also focus on generating excess resources that can be invested in other divisions of the company. As the market leader, Nike can maintain its position by investing in new technologies and product designs, as well as expanding its distribution network. By doing this, Nike can continue to grow its athletic shoe business while also generating cash that can be invested in other areas of the company.

The Global Athletic Footwear Market Is Expected to Experience Only