Nike

Nike has a great marketing and advertisement department. These departments looked for the next best athlete that would help sell Nike products. Tiger Woods was the answer. Nike landed the number one golf prospect in the world and diversified its products into the golf market. They produced things like golf shoes, golf clothes, and golf clubs. While producing golf equipment, they reduced the firm risk. .
             An external incentive for Nike to diversify was greater profits. That is the number one incentive for any business. Nike saw that there core competencies could carry forward into new markets. With the use of Tiger Woods, Nike's sales increased as if it was Nike using Michael Jordan all over again. This was a true sign Nike could transfer its core competency. They have since made major moves into the tennis market, golf market, and are constantly looking for the next. .
             When it comes to resources for diversification no one has more than Nike. There biggest resource is its reputation. Nike goes into different markets and acquires struggling companies in those fields, and automatically the product that company produces is better. Not because it is different, but because now it is a Nike product. Nike has all the basic resources such as: money, technology, innovation, and image. These resources make it easy for Nike to diversify in the sports market. Outside of the sports market it loses a lot of its power. As long as they do not stretch their core competencies they will continue to make their efforts in diversification successful. .
             Utilization of Acquisitions and Mergers .
             Unlike many large corporations in the competitive market, Nike has not made many acquisitions or conducted many mergers. Acquisitions and mergers are not major focuses in their corporate strategy. A major strategy for Nike is however, creating strategic alliances in new areas of the sporting goods and apparel industry.