Problem or Key Issue in case

The lack of a distinct brand positioning is the most serious issue in this situation. Brand positioning aids in the identification of a certain segment of the market and the identification of the exact receivers of the product that the firm is launching. Converse shoes were, without a question, items that swept the market (VanAuken, 2014). Competitors like Adidas and Nike, on the other hand, would cut this short. Brand positioning is defined not only by the characteristics of the target market but also by the characteristics of the product. When a firm targets certain consumers, it must ensure that the clients’ demands are satisfied in the product specifications.
Converse began as a product designed to satisfy the demands of athletes. However, this would change in the future, as individuals and celebrities began to appreciate the product. Rather than only being a sporting product, the product was accepted as a fashion item (Goetz, 2020). This indicated that the product’s placement has moved from its initial position to a new and different one. An organization should define its target consumers and ensure that the product is consistent while also meeting the demands of those customers.

After Converse and Nike merged, the issue of brand positioning became much more of a concern. The introduction of unique and creative shoes indicates that the firm did not have a clear focus on the market it was aiming for (Straatosphere, 2021). Though it was a strategic decision to modify the products in ways that the firm believed the customers would appreciate, the number of times the product was modified created concerns, and in some cases, the changes had an impact on the product. The inventive stages had such negative impacts on the product that the firm began to wonder if the customers wanted the innovated items or if they preferred to remain with the products that had been offered to them previously.

A firm that has successfully positioned its products in the market keeps to a single product line and only makes changes to improve the product rather than changing it (VanAuken, 2014). Trying to take advantage of every opportunity that arises may be difficult for a firm since brand loyalty suffers as a result. In this regard, it was a challenge for the firm to strive to take advantage of all market prospects.

The issue is also connected to marketing because the manner the firm originally introduced its product to the market was not the same as it was a few years later. The firm adopted a variety of viewpoints, which influenced customers’ purchase decisions, resulting in a direct negative impact on the company.

Environment for Case Organization

Although the case study’s environment is competitive, there are chances for the firm to use it to its advantage and emerge victoriously. When Converse is first introduced to the readers, the competition is immediately apparent. It’s important to remember that one of the reasons Nike took Converse under its wing was that the firm was struggling. Because of the fierce competition, the firm failed to succeed (Straatosphere, 2021).

Converse was the firm to beat before the arrival of other participants in the industry, such as Adidas and Nike since the company controlled the market. However, the success would be short-lived as soon as the competitors arrived.

Because of the items that were brought to the market, the atmosphere was also competitive. Converse was taken off the market for a variety of reasons, one of which being that the firm was unable to offer items that met the demands of its customers. It’s important to remember that competition is not just aided by the presence of other businesses in the market (Mazar, 2012). Competitors must also be able to give other organizations a run for their money. Soon after Nike and Adidas joined the market, the sneakers began to be inferior, indicating that the rivals had contributed something distinctive to the market.

SWOT Analysis

Strengths
The fact that the firm has been on the market for a long time is one of its greatest assets. The length of time that a firm has been in existence is critical since it influences how customers react to the company’s products. Converse, for example, if it were a new firm on the market, it is obvious that it would not have the same impact on customers as it has now. The length of time the firm has been in business has aided in the development of client connections (Straatosphere, 2021).

Conversely, if the firm had not been on the market for a longer period, certainly, Nike would not have decided to acquire it. The length of time that the firm had been in existence contributed to the notion that it could triumph in the market and that all it required was experienced management. Brand loyalty is the second strength. Customers modified the function of the converse sneakers since they loved the brand, which is fascinating. The firm aimed to meet the demands of athletes when it launched the converse sneakers on the market. This would change, though, as buyers began to wear sneakers for fashion (Mazar, 2012). A company’s strength is demonstrated when its consumers are loyal and embrace its offerings beyond their expectations.

Weaknesses
The company’s lack of understanding of consumer demands is one of its flaws. In two distinct situations, the flaw has been shown. The first instance is when a firm created a product to fulfill a client’s demand, but it ended up meeting the wants of a different sort of consumer. The second scenario is when rivals enter the market and seize control (Mazar, 2012). A company that understands the demands of its consumers is unlikely to be shut down. Apple Inc. is a wonderful illustration of this. Even though it has been in business for a long time, the firm is still one of the largest in its field (Goetz, 2020). This is because the firm knows the demands of its consumers, and despite not making many modifications to its goods, it still has a large number of customers throughout the world.

The absence of market intelligence or knowledge is the second flaw. The reason for this is because the firm had achieved improvements in its goods, and the results were bad at one time. Before a firm can make any changes, it must be aware of the effects the changes will have on its consumers (Russell, 2019). When modifications fail to fulfill consumer demands or fail to increase sales, it is clear that the firm did not do comprehensive research.

Opportunities
Social media is one of the company’s most promising prospects. Converse has demonstrated that it does not need to spend as much money on traditional marketing techniques to sell its products. The company’s presence on social media, as well as the concept of using social media as a major marketing tool, is an opportunity that, if properly exploited, may lead to increased success. In today’s world, social media has evolved into a platform for businesses to engage with their customers. Simultaneously, social media is employed as a marketing tool (Russell, 2019). As a result, the firm has the chance to use social media to support its growth.

Threats
The threat of competition remains, because the firm has yet to establish itself. The company’s sector has attracted several competitors or organizations that deal with similar items (Goetz, 2020). As a result, the firm is expected to encounter strong competition, which might have an impact on both present and future operations.

References

Goetz, L. (2020). The Economics Behind Sneakers. Retrieved from https://www.investopedia.com/articles/investing/030716/economics-behind-sneakers-nke-addyy.asp
Mazar, N. (2012). Interactive Decision Aids: Effects on Consumers, Retailers, and Manufacturers. Springer Science & Business Media.
Russell, C. (2019). Adidas or Nike? Which Retail Giant is Winning The Sneakers War?. Retrieved from https://www.forbes.com/sites/callyrussell/2019/08/22/adidas-or-nike-which-retail-giant-is-winning-the-sneakers-war/?sh=78c4c85e12b7
Straatosphere (2021). Over the past week, Converse, Nike, and Adidas dropped their “Pride” collections for the month of June, otherwise known as LGBT Pride Month. https://straatosphere.com/pride-collections-converse-nike-adidas/
VanAuken, B. (2014). Brand Aid: A Quick Reference Guide to Solving Your Branding Problems and Strengthening Your Market Position. AMACOM.