Nike has a high perceived value and is a hit among consumers who are brand conscious and are willing to pay a high price for high quality. It has a good brand reputation and is distinctively marked by its slogan Just Do It. Nike is continuously improving its products and so it can rightly be said that innovation plays a key factor behind its growth opportunities.
Strong research and development, complementing innovation, expansion into trendy/fashion industry where not just athletes are targeted, but the general population where new competition can be met from alternative clothing lines are some the measures taken by Nike to sustain its growth.
Nike has no factories. It does not tie up cash in buildings and manufacturing workers. They manufacture wherever they can produce high quality product at the lowest possible price. If prices rise and products can be made cheaper elsewhere, Nike will then move production. Another one of Nike’s strengths is research and development; it is evident by its evolving and innovative product range.
— Guru Focus