Nike Introduction
Nike Introduction
Nike Introduction
with all publicly traded companies, Nike’s first objective is to make a profit for the
shareholders.
In order to meet objectives, Nike makes a number of small aims and objectives. This includes
manufacturing superior products, maintaining the integrity of the global operation in area of design
the product. The aim of this company is to balances these profit-driven goals with a number of social
and sustainable aims, including use small water, reducing waste of material they use and
strengthening communities . Nike as company within athletics industry also operates in Low
Countries, moving all over the country but depending on factor cost. Their aim is to move easily is
often cause of difficulty for many less developed countries, which has become economically
depended on how they operate. An aim is a goal which this company wants to achieve. Another
business can sell much as possible whilst others aim to improve the quality of their mission
statement. The Nike mission statement in extremely particular in the way that it is worded during
Nike investor day, management provided a long term revenue tom forecast of achieving 65 billion in
revenue by 2015. This objective translates to a roughly 8% compounded annual growth rate based on
Nike
tionalities, genders, cultures, and ages. Nike has to achieve the highest sales. Have a highly
competitive advantage in the industry... Increase revenue from 2 million to 3 million in next financial
period. Increase market share from 24% to 28% and profit by 30% in the next year. Nike brick and
mortar stores will serve as testing grounds for new products and merchandising initiatives. Results
from these experiments will be shared with Nike's wholesale customers to further improve sales. The
company is about to embark on an ambitious, yet realistic plan that presents investors a great
opportunity to invest in a well-established company that is still experiencing growth.
Nike has been around for quite a while now actually dating all the way back to 1964 when it was one
known as "Blue Ribbon Sports. In time Nike sprung in too much bigger developing shoes for all sorts
of sports from baseball to tennis, basketball, soccer, and even golf. Nike understood they had to
tackle all sports to be the dominant brand in athletic sportswear which Nike has well done so. Nike's
big sport by all means has to be basketball whichever way you look it its where Nike builds its
popularity althoug
Nike’s CSR vision statement includes the company and its consumers as major
participants in the desired future goal of sustainability. The corresponding strategic objectives are
implied in the “sustainable economy” component of the vision statement. The third component of
Nike’s CSR vision statement reinforces sustainability by stating, “people, profit and planet are in
balance.” This CSR vision statement shows that, aside from being a manufacturer of athletic shoes
and related products, Nike is also concerned with the sustainability and balance needed to ensure
that everyone benefits from the business.
Inspiration
Innovation
Every athlete in the world
As a leading manufacturer of sports shoes, apparel and equipment, Nike Inc. inspires people to adopt
a winner mindset, which is covered in the “inspiration” component of the mission statement. The
company’s slogan “Just Do It” represents this inspirational goal. Also, Nike’s mission statement
emphasizes innovation. This component is applied through the company’s strategy of continuous
improvement of products through new technologies. The “every athlete in the world” component
indicates that Nike’s mission statement pushes the company to target every consumer around the
world. Thus, the company’s athletic shoes are designed to attract and satisfy a wide variety of market
segments.
Nike, Inc. lacks a suitable corporate vision statement. However, the company’s vision statement for
corporate social responsibility is a good start. This vision statement offers considerable information
about Nike’s business activities and strategic objectives. However, it does not address all areas of the
business as a whole. Thus, the company needs to develop and publish an appropriate vision
statement for the corporation to inform employees and investors about what the entire business
aims to become in the future, with reference to the global market for athletic shoes, apparel, and
equipment.
Nike’s mission statement adequately outlines the general strategic directions of the business. This
mission statement also remains relevant to the current situation of the company. It is expected to
continue its relevance even in the years to come, considering that the components “inspiration” and
“innovation” are essential for Nike to maintain its competitiveness amid tough global competition.
Thus, Nike can keep using its current mission statement to guide its strategies as a global sports
shoes, apparel and equipment company.
STRATEGY
Nike's Generic Strategies:
Nike Inc.’s generic strategy for competitive advantage emphasizes product
mix diversity. A generic strategy, according to Michael Porter, defines how a business achieves and
maintains its competitiveness. On the other hand, 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.
Nike Inc.’s generic strategy (based on Michael Porter’s model) is appropriate for its diverse product
lines, ensuring competitive advantage. The corresponding intensive strategies grow Nike’s global
sports shoes, apparel and equipment business. Nike
Inc. uses a combination strategy for its competitive advantage. This type of strategy includes two or
more of the generic strategies from Porter’s model. The
following are the generic competitive strategies implemented in Nike’s combination strategy:
2. Differentiation Strategy:
2. Market Penetration:
4. Diversification:
2. Quality Management:
Nike emphasizes quality in its processes and products. The objective in this strategic decision area is
to satisfy consumers’ expectations about product quality. The company’s operations management
addresses this concern through high quality standards and the application of total quality
management (TQM) in the production of sports shoes, equipment and apparel.
4. Location Strategy:
Physical location is the typical concern in this strategic decision area of operations management. The
objective is to optimize costs and efficiency through proximity to employees, suppliers and the target
market. In the case of Nike Inc., the operations managers apply a corporate strategy that chooses
production facility locations based on costs and nearness to the most significant markets. For
example, Nike Inc. has sports shoe suppliers in Southeast Asia because of the cost advantage based
on cheaper labor in the region.
8. Inventory Management:
The objective in this strategic decision area is to maintain operations management that minimizes
inventory costs while maximizing its effectiveness and efficiency. Nike’s operations managers apply
the perpetual method of inventory management, which involves continuous monitoring and
movement of inventory from the supply chain to the distributors and retailers.
9. Scheduling:
Nike’s scheduling approach is primarily concerned with corporate operations and the coordination of
the supply chain with distribution and retail operations. In this strategic decision area of operations
management, the aim is to maximize resource utilization. Nike Inc. managers satisfy this aim through
automation. Corporate office schedules are standardized, while supply chain schedules are adjusted
according to the conditions of the market. Nike applies changes to the supply chain based on market
demand for its athletic footwear, equipment and apparel.
10. Maintenance:
Nike’s maintenance strategy considers adequacy of all resources. Adequacy of human resources,
facilities and capacity is the objective in this strategic decision area. Nike’s operations management
implements continuous recruitment programs to support HR needs, as well as reward programs and
career development strategies for maximum retention of employees. For facilities, the company has
dedicated teams to regularly evaluate facility and equipment integrity and requirements. The
companies that manufacture Nike shoes, apparel and equipment are responsible for their own
maintenance.
Nike Inc.’s organizational culture
Nike Inc.’s organizational culture supports business resilience and capability.
Organizational culture is the combination of traditions, habits, values, and behavioral expectations
among employees. Nike’s workers are given a set of instructions, rules and expectations on how to do
their jobs, with consideration for their relations with customers and other employees. This approach
ensures that the company maintains its corporate culture, which partly contributes to the success of
the business. As one of the giants in the global athletic shoe, apparel and equipment market, Nike Inc.
continues its policies and strategies to promote an organizational culture that reinforces business
resilience and competence.
Nike has an organizational culture that encourages human resources to behave in ways that address
business objectives. Training programs are designed to uphold such corporate culture that aligns with
the Nike brand image for sports footwear, apparel and equipment.
Talented
Diverse
Inclusive
Talented:
Nike Inc. understands that talent and innovation go hand-in-hand. This feature of the organizational
culture emphasizes the need to provide human resource support for product development and
internal services in the corporation. As such, Nike uses training programs to maintain employee
talent. The company also has coaching and mentoring programs. These approaches are based on the
strategy that develops and enables leaders within the organization for Nike’s global growth. The
purpose of this characteristic of Nike’s corporate culture is to sustain talent and infrastructure
necessary for producing some of the world’s most popular athletic shoes, equipment and apparel.
Diverse:
Diversity is continually developed in Nike’s organizational culture. The company believes that this
feature of the corporate culture leads to a dynamic workforce. Diversity promotes Nike’s creativity,
innovation, brand image and, consequently, competitive advantage. The company maintains diversity
through HR programs, such as the Speak Up! program which facilitates sharing of ideas among
workers. This feature of the corporate culture maximizes Nike’s product development cycles,
especially in creating new designs for its sports shoes, apparel and equipment.
Inclusive:
Nike Inc. emphasizes inclusiveness in its organizational culture. The purpose of this cultural
characteristic is to minimize barriers to employee performance. Nike’s strategy uses inclusiveness as a
tool for optimal performance, diversity and talent development. The company supports this feature
of the corporate culture through a team-based approach to management. In addition, 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). This feature
of the organizational culture minimizes problems in Nike’s workforce and supports streamlining
athletic shoes, apparel and equipment design and production processes.
An advantage of Nike’s organizational culture is its support for new product development. The
characteristics of this culture ensure that the company continues its competitive advantage in the
global sports shoes, equipment and apparel market. Also, the diversity and inclusiveness features of
Nike’s corporate culture help develop employee morale. However, a disadvantage is the potential
reduction in managerial efficiency. The organizational culture facilitates employee involvement,
although it also increases the workload of Nike’s managers. A suitable recommendation is for Nike to
increase its investment in managerial personnel to balance the effects of its corporate culture.
Nike Inc.’s organizational structure
Nike Inc.’s organizational structure reflects the abilities and limits of the
business in its operations. A company’s organizational structure is the composition and system design
applied on the interconnections among employees, groups, and divisions of the business. In Nike’s
case, the corporate structure highlights the need to address differences among regional markets. As
such, the company has developed its organizational structure to enable adjustments in dealing with
market differences. As one of the leading players in the athletic footwear, apparel and equipment
industry, Nike Inc. serves as an example of how regional variations must be included in business
strategies.
Nike Inc. has an organizational structure that facilitates regionalization of business strategies. The
characteristics of this organizational structure provide Nike with flexibility to address consumer
preferences for organizational structure athletic shoes, apparel and equipment in regional markets.
Geographic organizational Structure:
Nike has a geographic divisional. This structure is based on the company’s needs in its global
organization and regional markets. The following characteristics are notable in Nike’s organizational
structure:
o Labor controversies
o Limitations in the product mix
o Limited presence in developing markets
Labor controversies continue to plague Nike’s business, especially in considering production facilities
in developing countries. This weakness negatively impacts the company’s brand image. Also, even
though Nike Inc. has expanded its product mix through the years, the resulting product lines are still
limited in capturing a larger share of the sports shoes, equipment and apparel market. Moreover, the
company suffers from limited presence in developing markets, partly because of issues with pricing,
imitation and patent protection. This weakness limits Nike’s global growth. Based on this part of the
SWOT Analysis, Nike Inc. must improve its policies and strategies in the areas of labor and
employment, product mix development, and penetration in developing markets.
o Tough competition
o Rapid technological innovation
o Imitation
Nike faces tough competition, considering other major players like Adidas. Also, rapid technological
innovation could further increase competitive pressure if Nike does not innovate as rapidly. In
addition, imitation remains a threat, especially in developing countries with poor legal protection for
patents. This part of the SWOT Analysis shows that, for Nike to maintain its leadership in the global
sports shoes market, product innovation and legal protection must be included in its major strategies.
This SWOT Analysis of Nike Inc. shows that the company has the strengths
needed to support its global leadership in the sports footwear, equipment and apparel market.
However, the company must address concerns regarding competition, labor practices, imitation and
patent protection. Thus, it is recommended that Nike Inc. must reform its strategies in these areas.
The company must also collaborate with government units to address patent protection issues.