BUS 499 Assignment 1 Strategic Management and Strategic Competitiveness
BUS 499 Assignment 1 Strategic Management and Strategic Competitiveness
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Date Created: 11/06/15
NIKE ANALYSIS Nike Analysis Yours Name Professor s Name University NIKE ANALYSIS 2 Introduction Nike Inc is an American multinational company who majorly deals in design manufacturing development marketing and worldwide selling of specifically sports wears and accessories Major products are apparel footwear accessories equipment and services It was founded by Bill Bowerman and Phil Knight in January 1964 named as Blue Ribbon Sports In May 30 1971 it officially became Nike Inc Headquarter is in Washington County with more than 44000 employees as per 2012 stats United States Total revenue as per 2102 was US2223 billion with total assets of US15 465 billion It is Leader in sports wear industry in the world NIKE ANALYSIS 3 Impacts of Globalization and Technology changes on Nike Being a World leader in sports and related accessories industry Nike got impacted hugely by both globalization and technology changes With the growth of athletic footwear industry Nike also started its expansion over the world Global polices of business also helped in the expansion Continents like Asia and Europe became the major customers for the Nike product Due to huge demands Nike started to contact with local suppliers for raw material and started manufacturing industries there In the period of 20 year Nike almost started more than 50 countries across the world As per 2001 data numbers of regional and local factories were more than 750 In early stage of globalization Nike closed its US factories and sourced almost all of its production from Asia In 1982 Korea and Taiwan produced 86 of Nike s athletic footwear Nike developed strategies to finding out low manufacturing cost countries and expanded its production in those countries Indonesia China and Vietnam after the cost increased in Korea and Taiwan With the presence in different cultured countries due to globalization it provided diversity of ideas and workforce to Nike which worked as a base for innovative development and creativity at Nike In 1980 Nike sold 175 different styles of shoes which increased to 772 till the end of 1990 and in the summer 2000 collection it offered 1200 different styles which clearly shows the benefit which Nike took from being a global company in the era of globalization It started to invest more in Apparel and sport wear business along with its traditional shoes business NIKE ANALYSIS 4 But with Globalization Nike has to face many challenges Challenges of wages working condition and anti Nike moment from local business are most frequent Strategy of taking advantage of global sources in order to manufacture lower cost products and investing more into innovation and marketing strategy by using these savings which helped Nike to achieve rapid growth also caused problems for the company in recent years Major issues involve child labor in Pakistan and Cambodia underpaid workers in Indonesia and poor working conditions in Vietnam But Nike handled these issues effectively to sustain and added the social responsibility as a sustainability pillars into its business approach Initiative like Health and Safety Problems in Vietnam proper code of conduct for manufacturing units Child education program in Pakistan Nike Environmental Action Team NEAT and Labor Practice program was taken by Nike to overcome by its bed image and to sustain continuously for a longer period of time in developing countries With the enhancement in technology Nike started to evolve itself by developing more cost effective sustainable products and also started to ensure the minimum impact on environment Recent Example of impact of technology on Nike is its Shox technology which is a revolution in cushioning and impact protection Other solutions which Nike developed are Nike Flyknit the making App which helps in material selection to designers and creators recycled polyester color dry technology which removes water from dyeing process by using recycled C02 New Marketing Approach is used with the help of technology Online marketing like email marketing use of social profile of customers to share the latest products promotional videos sponsoring big sports events promoting healthy life style by using Nike products like running shoes and accessories are major example of technology uses NIKE ANALYSIS 5 Industrial Organization Model and the ResourceBased Model Nike is in the industry for a long period of time and has acquired the skills which are essential to develop the cost effective and efficient products It knows the external environment and industrial environment like how to operate the production and supply chain management will allow Nike to enhance the customer base and to target them by its branding and marketing strategies and by converting the target customer into sells Its innovative approach of creating products from waste competitive nature and stepping into sports sunglasses will ensure above average returns for them Also by reducing controversies across their production line will increase the profitability On the basis of resource based model Nike has a very good brand in the customers offers product worldwide and wide range of product have offices in more than 50 countries has huge capacity of production to satisfy the market demand All those will help company to earn above average returns Impact of vision mission statement of the Nike on its Success Mission statement of Nike is To bring inspiration and innovation to every athlete in the world Bill Bowerman clearly stated that everyone who has a body is an athlete Nike39s mission statement clearly re ects that they are target everyone in the world and want to inspire them to win by their innovative products There vision is to provide effective sports merchandise to everyone The core principle behind their mission is to inspire They inspired every athlete to achieve better each they also they inspired themselves to continuously evaluating themselves and to produce the cost effective innovative products which fulfill every requirement of their NIKE ANALYSIS 6 customer It was necessary for them to target the sports events for marketing developing sports merchandise to be in line with their mission statement Sports give the sprit to win to not give up at any stage and Nike did the same by handling every adverse situation and came up again as a leader in industry Its marketing g strategy is also sports oriented and every advertisement either online or of ine shows its true intent of continuously competing and winning sprit Stakeholder Impact on the Overall Success of Nike Being as a multination company it s got impacted form each category of stakeholders starting from the investors regulators employees to end user customers Nike s stakeholders put impacts on prioritizing key issues and developing their corporate responsibility policies Regulators like Human right Acts Government laws of labor guided Nike for steps which were required to maintain a good work environment handled the local employee s issues as different countries wages issues which helped to maintain the high motivation in employees which results in higher productivity Business of Social Responsibility BSR authority as a stakeholder helped by providing new and distinct perspectives of business suggest and review the strategies to help the Nike Continuous feedback from their product sellers and marketers allowed them to find out the shortcomings and they enhanced their products which lead them to become the market leader Customer feedback also played a crucial role as they suggested the wide range of products which were essential for them and Nike started to manufactures those products like Nike Air light weighted shoes for joggers References Carbasho C 2010 Nike Corporations That Changed the World Greenwood NIKE ANALYSIS Frisch A 2008 The Story of Nike Built for Success Creative Impacts of globalization on Nikes international operations nd Retrieved from httpWWWukessayscomessaysmarketingimpactsof globalizati ononnikes internationaloperationsmarketingessayphp Locke R 2002 The Promise and Perils of Globalization The Case of Nike Stakeholder Engagement and Report Reviews nd Retrieved from httpWWWnikebizcomcrreportcontentabout
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