Nike Company: Strategy And Development

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Nike is a multinational company that produces Nike offer the products in footwear products like running, Training, Basketball, Soccer, Casualshoes, Skateboarding, Tennis, Volleyball, apparel for sports activities for dance and yoga, sports equipment like baseball bats and weights also technology accessories including heart-rate monitors and altitude wrist compasses under the brand of Nike which attracts people. The founder of the Nike is Bill Bower man field coach in the University of Oregon and his former student Phil Knight in 1964 as a Blue Ribbon sports it will be pronounced as NI-KEY, initially Nike began as a very distributor for Japanese shoe company Onitsuka Tiger in the back side of knight’s car. In 1966 the first retail outlet was opened in Santa Monica, California. In 1971 they started manufacturing their own line of shoes, BRS first introduced shoe is soccer shoe with brand name Nike, referring to the Greek Goddess of victory and the swoosh trade mark. The “swoosh” is the logo for Nike which is a curved check mark designed by a graphic lady student at Portland state university student called Carolyn Davidson in1971 and then it became a registered trademark. In 1972, it was the first launch of the Nike brand shoe then it went public two years later After 2000s to present Nike is the largest manufacturer and supplier in the world. Its operation technology used are, initially the first advantage used is Ecommerce and the variety of products offer on the web, products like footwear, apparel, sporting equipments etc…Only the Nike company gives best opportunity to the customer to design their own shoes online. The another special technology used is AIR SOLE technology. The operations that are covered by the Nike are Process, Materials, Machine tools, packaging, inform systems and maintenance.

Nike is socially responsible .it is working on improving the condition for workers as it is also trying to reduce its environmental impact like water conservation by partnering with Dyecoo Textile Systems and took their carbon-based dyeing process. That dyes garments without using water.as a result this process has saved gallons of water that Nike consumes then Nike was considered this to be the first water free dyeing .Moreover,Nike is trying to reduce the waste as much as possible by producing more environmentally products like the Nike’s Women’s Board Shorts are made from 100 percent recycled polyester in addition, Nike Zoom and Flywire technology use 100 percent green rubber. Furthermore,Nike has a great role in making special products for hejab woman even if it is not the first company to create hijabs for athletes but it is the first large-scale global corporation to prioritize the needs of Muslim athletes.also, it produced new boxes. This new box is not only made from recycled materials and is recyclable to reduce the waste of packing.At the beginning Nike approached the light green then market approach for environmentally friendly products then stakeholder approach then dark green then it become more greener by its achievments in industry and social resposibilty then it became one of the world top ten in the current SustainAbility Global Reporters Program ranking.

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Nike’s organizational culture is spiritually, organizational, sustainability and innovative to support business flexibility and power. The Organizational culture of Nike is a mix of traditions, habits, values, and the expected attitude among employees. The Innovation and Risk Taking ,Stability and Attention to Detail dimensions of Nike’s culture are achieved by c challenging the employees by giving them some instructions and rules and they try to achieve them and reach the target to be rewarded also, they are motivated by working conditions , company polices ,pay and benefits etc.. This approach ensures that the company maintains its organizational culture, which partly contributes to the success of the business. This organizational culture encourages human resources to behave in ways that address business objectives. It is based on creativity and innovation to provide products that approves current consumer demands. The following main characteristics of Nike’s corporate culture sustain business and market competence:

  1. Talented: Nike uses training programs to enhance employee talent which can reinforce in producing some of the world’s most popular athletic shoes, equipment and apparel.
  2. Diverse: Nike makes HR programs, such as the Speak Up! program, which is sharing of ideas among workers which can reinforce in creating new designs for its sports shoes, apparel and equipment.(team orientation dimension)
  3. Inclusive: Nike makes a team-based approach to management. Also, Nike employs a number of programs, such as Bias to Breakthrough (a program for removing barriers to creativity) and NCourage (a set of employee networks for cultural awareness and community building) which can reinforce in producing athletic shoes, apparel and equipment design.

Nike’s products are sold for more than 110 countries all over the world for instance, Indonesia, China, Taiwan, India, Thailand, etc…… Nike is a transnational organization because according to the management orientation it reflect ethnocentric global attitude. by investing the HR professional to have the right people with the right skills in the right roles who are empowered in developing their business to achieve the law of Nike and the code leadership standards first establish ways to see how workers are engaged and also estimating supplier management strengths and weaknesses and identifying opportunities for investments .Nike went global .global sourcing by manufacturing low cost shoes in Japan that can compete with the German shoe market.Then in 1990s,it opened stores in England and Germany in addition U.S and start exporting andselling online via websites.Then foreign subsidiary .as in 2003 the international sales were greater than the U.S sales.

Nike’s intensive growth strategy reflects the company’s focus on innovation to develop the business. An intensive strategy shows how a company grows. Founded in 1964, Nike Inc. has grown to become one of the biggest players in the global athletic shoes, apparel and equipment market. To keep its position and competitive advantage, Nike must ensure that its generic strategy and intensive growth strategies are always suited to current business conditions.

One of Nike’s supporting intensive growth strategies is concentration strategy. This strategy facilitates the company’s growth by targeting new markets or market segments. For example, Nike enters new markets in Africa and the Middle East to increase its shoe sales revenues. Alongside product development, the company applies the concentration strategy intensive growth strategy by investing in new technologies to penetrate new market segments, such as segments composed of bodybuilders.In addition,it achieved the divertication strategy after Nike for years has had a special relationship with Apple that has propelled Nike into the tech business. It’s produced some popular mobile apps and portable fitness devices.like wristband it calls a ‘FuelBand,’ for the activity-tracking the company made them available at just two sellers: Nike and Apple stores.it emphasizes that its wristband app is designed for Apple’s iPhone 5, 4s and 4, and iPod Touch. Sales of such devices are expected to nearly double to $1.5 billion in 2014 from $800 million for coming years, according to a recent report from U.K.-based Juniper Research. converse started struggling due to competition,poor business decision making and lack of sufficient funds for. so Nike acquired converse in 2003 with an estimated $305 million.Therefore Nike combined operation with its competitor converse and increase competitive strenghth and achieving the horizontal integration strategy. SWOT analysis of Nike analyses the brand/company with its strengths, weaknesses, opportunities & threats. In Nike SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

Here are nike’s strengths:

  • Nike is the world’s leading brand for sports shoes and apparel having a a global presence
  • It has been recognized many times by fortune magazines on “100 best companies to work for”
  • Nike is listed among 50 most innovative corporate companies worldover.

Here are nike’s weaknesses:

  • The Nike company faced allegations of labor and wage laws with employees, poor working conditions etc
  • Constant competition means limited market share growth for the company.

Here are nike’s opportunities:

  • Product expansion in areas like more concentration in sunglasses, sportswear etc. which gives high profit
  • Nike can open their stores in tier 2 cities in emerging economies as well
  • Enhance brand visibility by opening sports academies across the world for nurturing talent

Here are nike’s threats:

  • Footwear market is so competitive, major competition from other brands
  • As it is an international brand currency fluctuations of countries affects the business of Nike
  • Fake imitations and replicas often cause a problem for a brand like Nike.

Value chain means to understand what the activities through which firm can develops a competitive strategy and creates a shareholder value and it is used to separate the business system in to series of several business activities is known as value chain. The main aim of the value chain is to bring the products to markets and produce raw materials to retailers and delivers the finish products to consumer. Value chain means different companies work together to satisfy the market demand. Value chain management (VCM) is a strategic business analysis tool used for the seamless integration and collaboration of value chain components and resources. VCM focuses on minimizing resources and accessing value at each chain level, resulting in optimal process integration, decreased inventories, better products and enhanced customer satisfaction. VCM was introduced in the mid-1980s by Michael Porter, a business strategy authority and longtime Harvard Business School professor. VCM has evolved into a universally applied business management strategy, and is a powerful strategic planning tool that extends from organizations to distribution and supply networks. VCM requires the following components:

  1. Integrated chain strategy, planning and scheduling.
  2. An efficient supply chain.
  3. Full and interdependent chain resource management and optimization.
  4. Integrated customer insight data and information.

In my opinion, unexpected negative conditions like covid-19 has a great impact nowadays towards the value chain management. It is impacting Nike’s business inside and outside of China. Nike’s business in China, Europe and even US are expected to take a hit as the virus remains uncontained.

Nike is one of the biggest company in the world and always be a competitor for other competitors in the case of athletic wears. They continuously improve the financial performance from equipping athletes with the sport equipment in the world. They keep on going on the product lines and they became a most powerful global brand. The basic strategy of Nike is to provide the customers with good quality products.

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Nike Company: Strategy And Development. (2021, September 16). Edubirdie. Retrieved December 3, 2021, from https://edubirdie.com/examples/nike-company-strategy-and-development/
“Nike Company: Strategy And Development.” Edubirdie, 16 Sept. 2021, edubirdie.com/examples/nike-company-strategy-and-development/
Nike Company: Strategy And Development. [online]. Available at: <https://edubirdie.com/examples/nike-company-strategy-and-development/> [Accessed 3 Dec. 2021].
Nike Company: Strategy And Development [Internet]. Edubirdie. 2021 Sept 16 [cited 2021 Dec 3]. Available from: https://edubirdie.com/examples/nike-company-strategy-and-development/
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