Nike Inc Internal Assessment
Abstract
Nike has obtained a strong name and become a well-known company around the world. The leader company must be a pioneer, invest large sums of money in research and development. Management of the company has to analyze internal and external factors, actions of competitors and the strategic decisions can be made only when the company knows everything about itself as well as where it stands and where its competitors.
This report is about a current strategy, which one of the global company, Nike Inc., takes. It contains a comprehensive marketing analysis of company’s strengths and weaknesses, opportunities and threats for Nike. BCG matrix presents the most profitable direction of business and indicates which directions are question marks.
The report also shows a current situation of Nike on the markets and what strategy it takes in regard to competitors. The Space matrix, which includes an analysis of two internal and two external strategic dimensions, provides information about the strategic position of Nike.
Nike Inc Internal Assessment – PHASE 2
Current strategy of Nike Inc.
According to Michael Porter’s generic strategies model there are three basic strategic options available to organizations for gaining a competitive advantage. These options include: cost leadership, differentiation and focus.
Nike uses a combination strategy for its competitive advantage. The generic competitive strategies implemented in a company’s combination strategy are: cost leadership strategy and differentiation strategy.
Nike’s cost leadership generic strategy provides a competitive advantage based on costs. In this strategy, the company minimizes production costs to maximize profitability or reduce selling prices. With the aim of reducing expenditures, Nike transfers manufactures outside of the United States. Company has manufacturing agreements with 45 independent factories, located in China, Vietnam, Indonesia, Thailand, Argentina, Brazil, India and other countries to manufacture footwear for a sale primarily within those countries.
The second type of generic strategy of Nike is the differentiation strategy. The company will not be able to retain leadership without investing in innovative technologies, innovative products and development. That is why every year Nike invests large sums of money in creation unique innovation products.
Mark Parker, President and CEO of Nike Inc., tells that company focuses on building innovation partnerships, investing in start-ups, emerging technologies and new science. In March, 2017 Nike invited a lot of creatives from all over the world (artists, designers, DJs, and retailers) with the aim of reimagining Nike Air Max styles. As the result, the Revolutionair’s shoe with the most votes will have his or her Nike Air model released.
A new direction in sport was also an idea of Nike to work out a head gear for Muslim sports player. The design process took 13 months. The final product will be available for sale in spring, 2018.
Nike also incorporates new technologies in its products. Thanks to it, the company makes highly innovative products as shoe construction, modern design, affective advertising campaign etc. Nike also creates mobile app and different facilities, websites from which customers can buy goods online. Nike always updates a technological level …
