PGDM – B Group – 6 Avishek Singh 113Mohammad Shadab 129 Pratik Akerkar 139 Somjeet Dutta 152 1 2. However, the customers of the Nike’s have the brand awareness and this is the reason that the company put more effort in the products. However of late, there has been some drop in sales because Business Analysis-Nike's free workout apps are key to its high-end pricing strategy. PGDM – B Group – 6 Avishek Singh 113Mohammad Shadab 129 Pratik Akerkar 139 Somjeet Dutta 152 1 2. Jump to top Search. From releasing new product lines to building new brands, to outsourcing, and establishing a global presence alone is an extraordinary achievement. NIKE, Inc. engages in the design, development, marketing, and sale of athletic footwear, apparel, accessories, equipment, and services. Sexual Harassment: Former female employees also pointed out that sexual harassment and misconduct was very common in the company. It can be said Nike has potentially implemented all the strategy to introduce new products. Contradicting Strategies: Nike pledged to shift all its facilities to 100% renewable energy with net-zero carbon emissions under the “Move to Zero” scheme. Nike Strategic Analysis 9 of ability reach their potential or to create business opportunities that set Nike apart from the competition and provide value for our shareholders.” The person that the vision is talking about in the vision statement is Bowerman. The Washington Post. With consumers under lockdown logging into Nike's workout apps … It is a process which managers build strategies to get better results in performance. Nike- Strategic analysis 1. Thank you Gargi, I have been through business school not so long ago, so I can totally relate to you. Did you find this article interesting? Nike’s strengths are the primary drivers of the company’s growth and global leadership in the sports shoes, apparel and equipment market. United States. Introduction. Marketing strategy helps companies achieve business goals & objectives, and marketing mix (4Ps) is the widely used framework to define the strategies. Figure 3: Graph Showing NBA Players Perform Better when Wearing Nike Sneaker, Figure 4: Converse and Hurley Logo Brands. In 1985, in the US alone, athletic footwear was a 5 billion dollar business with 250 million pairs of shoes sold. Nike has chosen to use a localization strategy particularly with respect to Twitter and Instagram (McCulloch, 2014). Porter's 5 Forces . However, due to the success, Nike has gotten the company now provides athleisure wear as well. The pandemic has discouraged physical interaction and gathering with sporting events canceled or postponed. Based on our understanding and analysis of Nike’s Strategy here are some recommendations for them: They can focus on the different parkour and aerobic product. The Nike brand was launched at the U.S. Olympic trials in 1972 and Steve Prefontaine became the first athlete to wear Nike shoes and advertise them(www.trizera.com). This was also fuelled by how Germany had hugely dominated the domestic industry (Mullins, 2017, 78). In 2001, that number almost tripled, it became a 13 billion dollar business with 335 million shoes sold. 1. If the crisis discourages sporting events for longer, Nike’s losses can be catastrophic. Thus, Adidas and Nike have different marketing strategies in how both companies interactive with consumers online. The company specializes in athletic wear, providing footwear, apparel, athletic equipment, and accessories. Let us say Nike wants to capture a first world market like Australia then first Nike will do a SWOT analysis to check the environmental conditions first. A management consultant and entrepreneur. Multiple female employees reported that they had complained to the HR but saw no action being taken from their part. Research … I will also focus on the threats and opportunities that the Nike company is facing in the current business world. It was a validation of a strategy that Nike prioritised three years ago, dubbing it “Consumer Direct Offense,” but the seeds of the approach go back almost a decade. Nike Case Analysis 717 Words | 3 Pages. This was also fuelled by how Germany, had hugely dominated the domestic industry (Mullins, 2017, 78). During the recent years, the brand has made some strategic changes in its business model. Through this SWOT analysis of Nike, you will be able to understand the business model of the brand. Here’s why. However, both Adidas and Nike have a significant digital presence and impressive viral marketing strategies. ‘By mid-1985, inventories had fallen to less than 10 million pairs of shoes from a peak of 22 million in late 1983. One of the critical ingredients of Nike success is its ability to create demand for its products. This type of strategy includes two or more of the generic strategies from Porter’s model. “All those companies that built a business on the back of Nike and Adidas are toast – there’s no way they can replace that [business],” explained a source to the Sunday Times. Here’s a detailed breakdown of Nike SWOT analysis. Nike has implemented sophisticated systems and well-understood business procedures by keeping cross-functional cooperation, which consequently lead to the best inventory turnover from performance. NIKE Part 1: Organizational Analysis 2/6/2013 NIKE Part 1: Organizational Analysis Table of Contents Executive Summary3 Overview and History4 Organizational Strategies and Innovation5 Organizational Design and Effectiveness6 Competitors7 Organizational Structure7. Deliveroo Business Model | How Does Deliveroo Make Money? This article elaborates the product, pricing, advertising & distribution strategies used by Nike. It was found by, in the communities. However, to grow faster internationally, this time the company has focused on the metropolitan cities. Besides, the company seeks visionaries, leaders, and achievers. The biggest strength of Nike is that it is an extremely competitive organization with its approach of “Just Do It” slogan for its brand epitomizing its attitude towards business. Conclusion. finding a solution against these environmental issues. This was also fuelled by how Germany had hugely dominated the domestic industry (Mullins, 2017, 78). Nike is an international corporation that is involved in the designing, developing, producing and global sales and marketing of footwear, services, accessories, equipment, and, apparel. Nike has set business plans through strate… Using the Swot analysis the strategic issues facing the Nike Company will be identified and outlined. The competitive strategy that Nike introduced at the end of the 1990's concentrates on honing the focus of our marketing strategies and product offerings through product differentiation. Copyright © 2021 Business Strategy Hub. The logo of Nike is instantly recognized by people anywhere in the world. Nike products are sold is the retail stores because of their strategic location around the world. Your information is safe and will never be shared. Nike is focused on its footwear business, which can be somewhat risky considering that market trends change and most companies sustain themselves through a product diversification strategy. The company’s primary goal was to dispense high-quality, low-cost Japanese athletic shoes to the American buyers. The corresponding intensive strategies grow Nike’s global sports shoes, apparel and equipment business. The Swoosh. All rights reserved | contact@bstrategyhub.com | Logo designed by Looka. Major publicly traded clothing, footwear, sportswear, and equipment supplier based in the United States Headquartered near Beaverton, Oregon, in the Portland metropolitan area Revenue in excess of US$19 billion in its fiscal year 2010 Employs more than 34,400 … Nike has set business plans through strategic management in order to assess its business areas. Nike is headquartered in Beaverton, Oregon, USA. Save my name, email, and website in this browser for the next time I comment. Strategy Analysis of the Nike Company. 2996 words (12 pages) Essay. Results of Nike's new Customer Experience distribution strategy in place for over a year in a study by Euromonitor. This article was very interesting. Business Opinion & Analysis Sep 25, 2019 2:53PM PT How Nike’s Direct-to-Consumer Plan Is Crushing the Competition . It’s safe to say Nike’s at the top of its game right now. Executive Summary: The famous shoe Company with the swoosh logo has gone from strength to strength, since its inception in 1962, headquartered at Beaverton, Oregon to emerge as an industry leader – the most competitive sports and fitness company(www.nike.com). I need this info for citations. 6. We realize that the team-mentality that captured the spirit of athletics in the late 1980's and early 1990's has been replaced by a sense of individualism. Gupta understands how to create and implement business strategies. Another strength of Nike is that it is a global brand and its logo i.e. The company has numerous traditional and non-traditional channels in, various countries that target its main market areas such as Asia Pacific, Europe, the and the. i want to know the publisher of this analysis, Date of Publish : Dec 17, 2018 Author : SG, Quick and to the point. The global clothing apparel market is oligopolistic with for players Nike, adidas, H&M and Zara having a combined market share of 7.0%. Several sporting teams are on the brink of collapse. Nike’s Pricing and Business Strategy. The company’s primary goal was to dispense high-quality, low-cost Japanese athletic shoes to the American buyers. Author: S.K Gupta First published: December 17, 2018 Last updated: Oct 06, 2020. Nike Success. Nike, Mission, Vision, Values, Principles Essay 704 Words | 3 Pages. The student should use the Porter’s Generic Business Strategies model so as to analyze the NIKE business strategy. What sort of marketing strategy has Nike used to achieve and maintain this level of market dominance?. The management employs strategic management components such as vision, environmental analysis, strategy creation, strategy implementation, and strategy assessment (Nike, Inc., 2009). Business level strategy analysis/recommendations Nike’s major competitors consist of companies such as Adidas, Under Armor, and Rebook. Contents (Jump to) 1. To stay on top of their competitive game, Nike focuses on product differentiation and cost leadership. 5. The brand has excellent marketing campaigns and, Recently, a former employee accused Nike of, Multiple female employees reported that they had complained to the HR but saw no action being taken from their part. In Nike, it is, all about ensuring that every person brings his passion and skills to a continually evolving and. Through the interviews, it was established that Nike did have a toxic working environment, where sexual misconduct was rampant. We will address these strategic issues by focusing on the strengths and weaknesses of the Nike Company. While the strategy is great and welcomed, it contradicts Nike’s strategy that favors innovation over sustainability. – SG. By Hilary George-Parkin. Hey, who is the author of this report and what year was it finalized. Cost Leadership Strategy 2. However, new entrants required the huge amount for the capital; therefore, Nike has the maximum market share in the footwear industry (Reuters, 2016). Nike’s primary goal is to supply athletes with exceptional products and wearable that aids them in better sports performance. Nike Inc.’s generic strategy (based on Michael Porter’s model) is appropriate for its diverse product lines, ensuring competitive advantage. Nike's Strategic And Financial Position Analysis Nike is a globally recognized multinational corporation founded by the Stanford Graduate School of Business graduate, Phil Knight, and Bill Bowerman who was the track and field coach at the University of Oregon. I am glad you liked our analysis. Thanks it will help me my upcoming presentation. market demand for fashionable apparel and athletic footwear will ensure that Nike stays on top. 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