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Short- and Long-Run Strategies: NIKE and Reebok

March 24, 2016 | Author: | Posted in environmental issues, nature

Short- and Long-Run Strategies : NIKE and Reebok

It is essential to learn the mechanics of short- and long-run effects of supply and demand . Short-run strategies can make notable changes within an organization ‘s profits and efficiency with the economy . The basics of short-run supply and demand measurements can help managers determine a differential approach to their industry ‘s changes then adopt to move ahead . Long-term supply and demand strategies can help managers determine how to allocate income to more advertising and marketing efforts as well . For example , if NIKE has a budget [banner_entry_middle]

of 1 .2 million , the executive manager may spend 9 of that to increase short-term investments of a new product . The team will consider the spending as a short-term goal in which runners (targeted customers ) buy the new shoes at accumulating numbers . If managers focused on short-term goals , there might be a loss of return on investment (ROI ) from the advertising efforts

Reebok , an Adidas line , has a different strategy than support new products with high budgets – they offer remarkable deals instead . New product developments enable the Reebok staff to utilize its long-run goal of longevity by offering shoes at affordable costs . These opportunity costs have tapped into their return in other areas e .g production , equipment and land purchases . These investments have helped Adidas push Reebok towards the public in a more guerilla marketing method . For example , the 9 NIKE invested in its short-run investments increased new productions for Reebok by 13 long-run investments Overall , the managers of each company can analyze the possibilities of increased business through their understanding of short- and long-run effects in the athletic shoe industry

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