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Nike Introduction of Company Profile  Nike is the most identifiable sports brand in the world. This is no surprise, as it sponsors the most elite athletes in sports across the board, and is the leading supplier of athletic apparel and equipment. The company, originally called Blue Ribbon Sports, was founded in 1964 in Beaverton, Oregon by Bill Bowerman and Philip Knight. Nike started out distributing shoes for ASICS and remained viable, but profits soared when it released its first independent line of running shoes in 1972. Findings Recently and as usual, Nike has been implementing the differentiation strategy as a base of their business and marketing strategy, in which if it is to be compared with the shoes of Adidas, one of its rivals, its shoes is produced using a completely different technology that can satisfy the customers. 1. Business s tr ategy The generic business strategy for Nike is a product differentiation strategy. NIKE emphasizes on the key strategy elements of branding advertising, design of products, exclusive customers service, high quality products and new products development (Grant 2010) 2. Corpor at e str at egy Diversification  Nike Corporate Level Strategy As a creative firm, Nike focus its corporate only emphasizes on diversification. The operational relatedness between businesses is very high. The diversification of Nike is related constrained for it spread its interi or competency and resources/capabilities to create value. 3. Inte rnational strategy The international corporate-level strategy of Nike would be the transnational strategy. This is because Nike highly emphasizes on international assimilation and local responsiveness. Both global efficiency and local responsiveness is something that Nike seeks to accomplish the most but yet is something hard to be achieved due to the simultaneous requirements for robust inner control and coordination to accomplish efficiency and local flexibility and also to a chieve local market responsiveness, the decentralization process.

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Nike

Introduction of Company Profile

 Nike is the most identifiable sports brand in the world. This is no surprise, as it sponsors

the most elite athletes in sports across the board, and is the leading supplier of athleticapparel and equipment. The company, originally called Blue Ribbon Sports, was foundedin 1964 in Beaverton, Oregon by Bill Bowerman and Philip Knight. Nike started outdistributing shoes for ASICS and remained viable, but profits soared when it released itsfirst independent line of running shoes in 1972.

Findings

Recently and as usual, Nike has been implementing the differentiation strategy as a baseof their business and marketing strategy, in which if it is to be compared with the shoes of Adidas, one of its rivals, its shoes is produced using a completely different technology

that can satisfy the customers.1. Business strategy

The generic business strategy for Nike is a product differentiation strategy. NIKE

emphasizes on the key strategy elements of branding advertising, design of products,

exclusive customers service, high quality products and new products development (Grant

2010)

2. Corporate strategy

Diversification

 Nike Corporate Level StrategyAs a creative firm, Nike focus its corporate only emphasizes on diversification. Theoperational relatedness between businesses is very high. The diversification of Nike isrelated constrained for it spread its interior competency and resources/capabilities tocreate value.

3. International strategy

The international corporate-level strategy of Nike would be the transnational strategy.This is because Nike highly emphasizes on international assimilation and localresponsiveness. Both global efficiency and local responsiveness is something that Nike

seeks to accomplish the most but yet is something hard to be achieved due to thesimultaneous requirements for robust inner control and coordination to accomplishefficiency and local flexibility and also to achieve local market responsiveness, thedecentralization process.

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PORTER’S VALUE CHAIN

Manufacturers / SuppliersConsistent with its original strategy, NIKE outsourced virtually all of its footwear manufacturing to low-cost Asian or South American manufacturers. By 1999, the primary locations for NIKE production were Indonesia, Vietnam, Korea and China.Managing its global supply chain was a core strategic advantage for NIKE and all itsoperations were geared towards ensuring smooth integration with contract manufacturing.The company worked with hundreds of manufacturing partners in order to develop long-term, trusting relationships. Manufacturing partners did not necessarily provide thecheapest production, but for the most part, they delivered consistent, timely shipments of goods that met NIKE’s high quality standards. The partners were willing to invest heavilyin capabilities to manufacture new designs or features, knowing that production levelswould be high enough to offset the investment. NIKE generated all its own new product ideas and managed the design process in-house.Once a design was perfected, a manufacturer would begin the eight-month product cycle process of developing volume production capabilities in all the relevant sizes. Once production was fully on-line, NIKE could expect orders to be fulfilled within 90 days, plus an additional 30 days for shipping by sea freight.

Product Lifecycle

Getting a new athletic shoe model on a store shelf could take 15 to 18 months, frominitial planning to final product distribution. Volumes were determined far before shoesarrived at consumer outlets, requiring careful forecasting from NIKE and its merchants.A typical new NIKE shoe had a market life of 3 to 6 months from introduction todepletion of inventories. Because the product life was so much shorter than the production cycle, it was not possible to adjust production runs to meet unexpected levelsof consumer demand. As a result, NIKE did not try to match supply of any given shoemodel with demand, preferring instead to set conservative production targets and then begin designing the next generation model.A typical NIKE factory produced between 2,000 and 3,000 pairs of shoes in a day,implying a production run of about three months for a line that would sell 200,000 shoes.

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It was difficult for NIKE to make money on smaller production runs, although thecompany did produce some specialty shoes at considerably lower volumes.

Retail Sales Channel

 NIKE utilized a large in-house sales force to sell its products through a number of 

different types of stores – multi-sport general athletic department stores, specialty athleticdepartment store retailers and general-purpose shoe stores. Despite the company's originsselling shoes straight to track runners from the back of Phil Knight's car, NIKE had not been very interested in direct-to-consumer sales. The company did not have a meaningfulcatalog or mail-order business and had opened only a handful of its own stores, called NIKE Towns. Even these NIKE-owned stores were seen more as a marketing and brand- building effort than a meaningful source of sales.The retail market for athletic footwear and apparel was extremely fragmented. The topten sporting goods retailers represented a mere 14% of total U.S. sales. Because theseretailers were so small, they had been slow to implement sophisticated technology totrack purchases and inventory, leading to frequent stockouts and misallocations of 

inventories. NIKE had suffered in the past from imperfect information concerningretailers' inventory levels and was hopeful that better methods of inventory monitoringwould be found. NIKE’s 40% market share in U.S. athletic footwear gave it additional influence with themerchants who carried their products. The company encouraged advance planning fromits retail partners – nearly 90% of the orders it received from retailers were for futuredeliveries nine months out. As a result, NIKE was able to plan manufacturing anddistribution far in advance to meet its guaranteed future sales. NIKE was also able tonegotiate favorable contract terms with its retailers, including display characteristics,inventory levels, and other details that affected the consumer experience.The company distributed most of its own products from its factories to retail stores or retailer distribution centers. The distribution process was extremely complex; a retailer’smonthly order of 300,000 pairs of shoes could involve over 50 different models beingshipped to 100 different locations. In the late 90s, NIKE invested over $1 billion inseveral large regional distribution centers to replace its numerous smaller centers. NIKEalso started providing discounts to retailers who managed their own distribution rightfrom the NIKE Factory, thus avoiding the need to go through a NIKE distribution center at all. NIKE tried to keep inventories to a bare minimum and managed over 5 inventoryturns a year.

Direct Sales Channels

In 1999, NIKE owned and operated 13 NIKE Town superstores, typically located inextremely high-traffic, upscale shopping neighborhoods. The first NIKE Town store wasopened in Portland in 1990 and was described by its designer as a cross between theSmithsonian, Disney World, and Ralph Lauren. While a broad range of NIKE footwear and apparel was sold (at full retail price), the layout of the store and the merchandiseselection made it as much a showcase of NIKE products as a retail store.The Portland store was quickly followed by an even more ambitious project in downtownChicago. The Chicago store, a 70,000 square foot operation located in some of the mostexpensive real estate in town, quickly became the city’s largest tourist attraction as 7,500

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visitors a day flooded in to see the two-story mural of Michael Jordan and try NIKEshoes out on the miniature basketball court.The NIKE Town stores were not run to be independently profitable, or even to be major selling channels for NIKE products. Instead, they were a showcase for NIKE’s newest or most innovative product lines, an opportunity to strengthen ties with consumers, and an

extraordinary brand advertising opportunity. The stores also carried hard-to-find productsor specialty items not available from typical retailers. Another source of sales at NIKETowns were souvenir items, such as the Michael Jordan paraphernalia sold at the Chicagostore. Initially, retailers were wary of the concept, fearing they would lose sales to NIKETown stores, but their fears were eventually allayed as the company’s intentions becameclearer. There was a sense within NIKE that the NIKETown stores had not lived up totheir full retail potential due to efforts to appease retailers’ concerns about competingdirectly with NIKE.In addition to the NIKE Town stores, NIKE operated 53 outlet locations to liquidateoverstocked or outdated inventory. This channel provided the company with a convenientmeans of disposing excess inventory without giving up too much control of the brand.

Prices and quality were both controlled directly to minimize impact on the core brand,rather than relying on other liquidation channels.

PORTER’S 5 FORCES

 Nike has competitors everywhere it looks. They exist in its small share of apparel and inits large share of footwear. Michael Porter’s framework for competitive strategy serves asa model to understand competitive analysis (Porter, p. 187): the threat of new entrants,the bargaining power of suppliers, the bargaining power of buyers, and the threat of substitute products or services are all critical pieces to the analysis. All of these elementsare critical in understanding the degree of competition that exists for this company.

Threat of New Entrants

Barriers to entry are high making the threat of new entrants low. Nike’s large-scaleoperations make it easy for the company to control costs. Furthermore, Nike’sexceptional marketing has created a brand recognition and identity that make it difficultto rival. Nike’s relationships with suppliers, retailers, and consumers are built on years of successes and failures. Any real threat would probably require years in the marketplace.

Bargaining Power of Suppliers

 Nike manufactures wherever it can produce high quality product at the lowest price. If  prices rise, and products can be made more cheaply elsewhere to the same specifications, Nike will move production. Nike’s products, however, are subject to risks associated withoverseas sourcing, manufacturing, and financing.Virtually all of Nike’s footwear is produced outside of the United States. In fiscal 2008,contract suppliers in China, Vietnam, Indonesia and Thailand manufactured 36 percent,33 percent, 21 percent and 9 percent of total NIKE brand footwear, respectively (Nike

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Annual Report). The principal materials used in Nike’s apparel products—i.e., naturaland synthetic fabrics and threads, plastic and metal hardware—are available in countrieswhere Nike manufacturing takes place. Therefore, Nike competes with other companiesfor the production capacity of independent manufacturers that produce its products andfor import quota capacity. Ultimately, the production processes determine the power of 

suppliers.All companies are exposed to the international nature of trade. Nike buys and sells indifferent currencies and so costs and margins are not stable over long periods of time.Such an exposure could mean that Nike might be manufacturing and or selling at a lossthat other companies could not afford to do. Currency exchange rate fluctuations candisrupt the business of the independent manufacturers that produce Nike products bymaking their purchases of raw materials more expensive and more difficult to finance. Inthe 21st century Nike’s ability to manufacture products or procure materials, import products, and sell products in international markets are now at risk because of diseaseoutbreaks, terrorist acts and military conflict. Few people are cognizant of these threatsand few companies can afford to take on these risks.

Threat of Substitute Products

The market for sports shoes and garments is very competitive. Competitors aredeveloping alternative brands to take away Nike’s market share; however, few arecapable of making a dent in Nike’s market share. First, Nike uses trademarks on nearlyall of its products. These readily identifiable marks are deterrents to potentialsubstitutions. Consumers identify with these brands and often buy shoes because of thesedistinctive marks: NIKEо, Swoosh Designо, and “Just do it” trademarks are among their most valuable assets and are registered in over 100 countries. These trademarks, patents,and intellectual property rights are important to the Nike brand and their competitive position.3.Understanding the consumer is at the forefront of what Nike does well. As a result, Nikehas breath in its product lines and depth in its shoe lines. Nike’s products are truly notthat different but its marketing has convinced its consumers that they are. Nike’s many proprietary product differences (e.g. a couple of gel packs in the heel canmake people run faster and longer with reduced risk of injury) make it extremely difficultfor new companies to enter the footwear market and offer something that differentiatesthemselves from the Nike giant. Innovation, both technical and design, contribute to thesuccess of Nike. According to its corporate report, “specialists in the fields of  biomechanics, exercise physiology, engineering, industrial design and related fields, aswell as research committees and advisory boards made up of athletes, coaches, trainers,equipment managers, orthopedists, podiatrists and other experts” develop and test their “cutting edge” performance products” (Nike Annual Report). It would be cost prohibitivefor an upstart company to garner and leverage the breadth and depth of these resources. Nike takes pride in getting the top athletes to wear and sponsor their products rather thanevents or competitions. Few companies can afford the expense associated with theseathletes.

Bargaining Power of Buyers

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Two kinds of buyers exist: retailers and consumers. The retail sector is price sensitive. Nike does have its own retailer in Nike Town. However, most of its income is derivedfrom selling into retailers. Retailers tend to have a difficult time differentiating their experiences for the consumer. Since sports retailers have little differentiation in their 

retail outlets, margins tend to get squeezed as retailers try to pass some of the low pricecompetition pressure onto Nike. Retailers like Foot Locker and Finish Line are learningfirst-hand that their consumers are spending less on things they don’t need in therecession. This hurts them and it hurts Nike. Retailers are trimming inventory to avoid profit-eroding discounts, in turn hurting demand for Nike products. The “poor  performance by major retail partners leave Nike challenged,” said analyst Sam Poser in aMarketwatch report.

“Retailers are working to decrease their inventory levels and increase their inventoryturns (Marketwatch).” With respect to its retailers, Nike also has a risk that it may beunable to sell excess products that it has ordered from manufacturers. Inventory levels inexcess of customer demand may result in inventory write-downs, and the sale of excess

inventory at discounted prices could significantly impair Nike’s brand image and have anadverse effect on its operating results and financial condition. Conversely, if Nikeunderestimates consumer demand for its products or if its manufacturers fail to supply the products that Nike requires at the time Nike needs them, Nike may experience inventoryshortages.Inventory shortages might delay shipments to customers, negatively impact retailer anddistributor relationships, and diminish brand loyalty. Consolidation of retailers or concentration of retail market share among a few retailers may increase and concentrate Nike’s credit risk, and impair its ability to sell Nike products (Nike Annual Report).A few large athletic footwear, apparel, and equipment retailers dominate the athleticfootwear, apparel, and equipment retail markets in some countries with many stores.

These significant retailers have been increasing their market share by expanding throughacquisitions and construction of additional stores. In addition, increasing market shareconcentration among one or a few retailers in a particular country or region increases therisk that if any one of them substantially reduces their purchases of Nike products, Nikemay be unable to find a sufficient number of other retail outlets for the products to sustainthe same level of sales and revenues.

Ultimately it comes down to the consumer who is shopping around for a better deal. Theconsumer now maintains the control over the manufacturing so if a consumer wanted tofind the lowest price on the same exact product then the consumer compares prices andthen goes to the store that sells the shoe at the cheapest price. Such consumer pricesensitivity is a potential external threat to Nike.Competition looks very different than it did even 20 years ago. The competitive forcesare exponentially greater no matter what framework one chooses to use to analyze theforces. What Nike has that is far superior to any competitors is its core competencies of marketing, distribution, and technological expertise. (Manufacturing practices of Nike)Ultimately, however, Nike’s success depends on its ability to anticipate accurately andrespond to trends and shifts in consumer preferences by adjusting the mix of existing

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 product offerings, developing new products, designs, styles and categories, andinfluencing sports and fitness preferences through aggressive marketing.

External findingsUltimately, a SWOT analysis is used to show Nike’s current market involvement androom for growth. However, for external findings, only opportunity and treat to Nike will be reviewed. This report is meant to elucidate Nike’s business model and action plan, to be studied by competitors and other businesses alike.

Strengths

 Nike is a very competitive organization. Phil Knight (Founder and CEO) is often quotedas saying that 'Business is war without bullets.' Nike has a healthy dislike of iscompetitors. At the Atlanta Olympics, Reebok went to the expense of sponsoring thegames. Nike did not. However Nike sponsored the top athletes and gained valuable

coverage. Nike has no factories. It does not tie up cash in buildings and manufacturing workers.This makes a very lean organization. Nike is strong at research and development, as isevidenced by its evolving and innovative product range. They then manufacture wherever they can produce high quality product at the lowest possible price. If prices rise, and products can be made more cheaply elsewhere (to the same or better specification), Nikewill move production. Nike is a global brand. It is the number one sports brand in the World. Its famous'Swoosh' is instantly recognisable, and Phil Knight even has it tattooed on his ankle.

Weaknesses

The organization does have a diversified range of sports products. However, the incomeof the business is still heavily dependent upon its share of the footwear market. This mayleave it vulnerable if for any reason its market share erodes.The retail sector is very price sensitive. Nike does have its own retailer in Nike Town.However, most of its income is derived from selling into retailers. Retailers tend to offer a very similar experience to the consumer. Can you tell one sports retailer from another?So margins tend to get squeezed as retailers try to pass some of the low price competition pressure onto Nike.

Opportunities

Product development offers Nike many opportunities. The brand is fiercely defended byits owners whom truly believe that Nike is not a fashion brand. However, like it or not,consumers that wear Nike product do not always buy it to participate in sport. Somewould argue that in youth culture especially, Nike is a fashion brand. This creates its ownopportunities, since product could become unfashionable before it wears out i.e.consumers need to replace shoes.There is also the opportunity to develop products such as sport wear, sunglasses and jewellery. Such high value items do tend to have associated with them, high profits.

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The business could also be developed internationally, building upon its strong global brand recognition. There are many markets that have the disposable income to spend onhigh value sports goods. For example, emerging markets such as China and India have anew richer generation of consumers. There are also global marketing events that can beutilised to support the brand such as the World Cup (soccer) and The Olympics.

Threats

 Nike is exposed to the international nature of trade. It buys and sells in differentcurrencies and so costs and margins are not stable over long periods of time. Such anexposure could mean that Nike may be manufacturing and/or selling at a loss. This is anissue that faces all global brands.The market for sports shoes and garments is very competitive. The model developed byPhil Knight in his Stamford Business School days (high value branded productmanufactured at a low cost) is now commonly used and to an extent is no longer a basisfor sustainable competitive advantage. Competitors are developing alternative brands totake away Nike's market share.

As discussed above in weaknesses, the retail sector is becoming price competitive. Thisultimately means that consumers are shopping around for a better deal. So if one storecharges a price for a pair of sports shoes, the consumer could go to the store along thestreet to compare prices for the exactly the same item, and buy the cheaper of the two.Such consumer price sensitivity is a potential external threat to Nike.

Internal Findings

Marketing Mix will be applied in the report to further review the marketing flow of Nike.As usual, marketing mix may include 7P elements of pricing, products, people, placing, promotion, physical evidence, and process.

Product

 Nike offers a wide range of shoe, apparel and equipment products, all of which arecurrently its top-selling product categories. Nike started selling sports apparel, athletic bags and accessory items in 1979. Their brand Cole Haan carries a line of dress andcasual footwear and accessories for men, women and children.

They also market head gear under the brand name Sports Specialties, through NikeTeammanufactures and distributes ice skates, skate blades, in-roller skates, protective gear,hockey sticks and hockey jerseys and accessories.

Price

 Nike’s pricing is designed to be competitive to the other fashion Shoe retailer. The pricing is based on the basis of premium segment as target customers. Nike as a brandcommands high premiums. Nike’s pricing strategy makes use of vertical integration in pricing wherein they own participants at differing channel levels or take part in more thanone channel level operations. This can control costs and influence product pricing.

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Place

 Nike shoes are carried by multi-brand stores and the exclusive Nike stores across theglobe. Nike sells its product to about 20,000 retail accounts in the U.S. and in almost 200countries around the world. In the international markets, Nike sells its products through

independent distributors, licensees and subsidiaries. The company has productionfacilities in Asia and customer service and other operational units worldwide

Promotion

Promotion is largely dependent on finding accessible store locations. It also avails of targeted advertising in the newspaper and creating strategic alliances. Nike has a number of famous athletes that serve as brand ambassadors such as the Brazilian Soccer Team(especially Ronaldo, Renaldo, and Roberto Carlos), Lebron James and Jermane O’Nealfor basketball, Lance Armstrong for cycling, and Tiger Woods for Golf.

 Nike also sponsors events such as Hoop It Up and The Golden West Invitational. Nike’s brand images, the Nike name and the trademark swoosh; make it one of the mostrecognizable brands in the world. Nike’s brand power is one reason for its high revenues. Nike’s quality products, loyal customer base and its great marketing techniques allcontribute to make the shoe empire a huge success. Indian soccer team captain BaichungBhutia is the new brand ambassador of Nike.

People

 Nike is placed to discover potential, demolish boundaries, and push out the edges byemploying people who can think, grow and create. It is flourished in a culture that holdsdiversity and rewards thoughts. Nike’s people bring inspiration and innovation to business. Being a world’s major sports and Fitness firm, it also goes ahead of the game towork with cultures and communities around the world.The Nike stores provide the public with top quality apparel and equipment at “value for money” prices. Management is responsible for day-to-day operation of the store andhuman resources.

Physical Evidence

The Nike brand has become so strong as to place it in the rarified air of recession-proof consumer branded giants, in the company of Coca-Cola, Gillette and Proctor & Gamble.Brand management is one of Nike’s many strengths. Consumers are willing to pay morefor brands that they judge to be superior in quality, style and reliability. A strong brandallows its owner to expand market share, command higher prices and generate morerevenue than its competitors. With its “Just Do It” campaign and strong product, Nikewas able to increase its share of the domestic sport-shoe business from 18 percent to 43 percent, from $877 million in worldwide sales to $9.2 billion in the ten years between1988 and 1998. Nike spent $300 million on overseas advertising alone; most of it

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centered around the “Just Do It” campaign. The success of the campaign is that muchmore remarkable when one considers that an estimated 80 percent of the sneakers sold inthe U.S. are never used for the activities for which they have been designed.Through its “Just Do It” campaign, Nike was able to tap into the fitness craze of the1980s. Reebok was sweeping the aerobics race and gaining huge market share in the

sneaker business. Nike responded to that by releasing a tough, take-no-prisoners adcampaign that practically shamed people into exercising, and more importantly, toexercising in Nikes.The “Just Do It” campaign was also effective in reassuring consumers that the brand they picked, Nike, was a quality brand. This was most effectively portrayed by celebrity sportsfigures such as Bo Jackson, John McEnroe and later, Michael Jordon. If Michael Jordancan play an entire NBA season in a pair of Nikes, certainly the average weekend warrior can trust the shoes’ durability.Celebrity endorsements also appealed to the consumers’ sense of belongingand“hipness,” as Nike became a self-fulfilling image prophecy: if you want to be hip,

wear Nike; if you are hip, you are probably wearing Nike. The “Just Do It” campaign was

able to turn sweaty, pain-ridden, time-consuming exercise in Nike sneakers intosomething sexy and exciting. Perhaps most importantly, even those who were not in factexercising in Nikes (the vast majority) still wanted to own them. By focusing on the auraand image conveyed by the fitness culture, Nike was able to attract those who wanted theimage without incurring the pain.

Process

In the apparel marketplace, Nike is a pioneer in product lifecycle management (PLM).The company traces much of its PLM success to a major focus on process reengineering.

When Nike embarked on its PLM initiative and solution search, it had two overarchinggoals in mind: Improving gross margins and lowering the cost of ownership for thesystem required to manage PLM processes.To attain these goals, Nike wanted to achieve better integration between productdevelopment and other business activities within the organization, and attain greater reporting capabilities. Another major objective was to work better with vendors:Leverage buying power and improve relationships with strategic vendors. Nike also recognized that if it could implement a flexible and scaleable PLM solution, itwould benefit the business from a “people” perspective. By having a single PLM platform, for example, the firm could offer more integrated IT training and help tosmooth its inevitable business transitions and organizational evolution. Nike knew that the biggest potential to enhance its business performance via PLM wouldcome from being quick to market. That is why the company focused so much attention onreconfiguring its processes. The rewards of becoming a lean enterprise and excelling insupply chain innovation loomed on the horizon.

ENVIRONMENTAL ANALYSIS

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Internal – Strength

 Nike’s management analyzes its internal environment and makes decisions based on thatanalysis. Because of Nike’s marketing research, the company has decided to revamp itsapparel division to be more fashion savvy. As a result of product and pricing research,

 Nike has decided to continue to focus on the high end market while increasing its marketshare in the middle and low price ranges in an attempt to broaden Nike’s productspectrum.

External - Weakness

 Nike’s failure to foresee problems in relation to labor and factory conditions at production locations has resulted in bad publicity and declining sales as society andconsumers call for more "socially responsible" companies.

Conclusion

In conclusion, so far Nike has outstanding financial performance, it ranks in number onein apparel industry in US market. But Nike also faces some issues about sustainability,and that would affect Nike’s financial performance. As mentioned above, it indicates that Nike can solve these kinds of issues through planning and organising. It can have a newstrategic plan about what company should achieve in the long run about both financialaspect and sustainability aspect. Also, it needs some operational plans to backup itsstrategic plan. Operational plans also have more details than strategy plan. In theorganising aspect, Nike should organise both its human and material resource. And Nikeneeds do more about triple bottom line reporting. From the better planning andorganising, Nike can maximise the benefits of a focus on sustainability in theorganisation. The strategy implemented in Nike currently, the differentiation strategy can be the best tool for Nike to compete with its rivals like Adidas in the competitive market.

Recommendation

It is better for Nike to buck up the corporate social responsibility through some activitieslike sponsoring marathon competition, sponsoring national football club to playinternational games.According to the situation of Nike and discussed above, there are five recommendationsfor Nike to maximise the benefits of a focus on sustainability:

• Continue using the factories in developing countries, but increasing the employees’

 benefits such as increases wages and decreases working hours.

• Continues focus on research and using new material which is economic-friendly to

make its products.• Prepared Triple Bottom Line reporting as well as financial reporting every year.

• Using various means (marketing methods) to let more people know how Nike

engages in sustainability stuff. It can increase Nike’s reputation and potentiallyincrease its customer size.

• When Nike in an economic dilemma (such as profit verse environment), it is better to

 put environment or social benefits before its environment benefits. Because in the

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short run, concerning environment or social benefits will lose some financial profit, but in the long run it will bring Nike more benefits.

BIBLIOGRAPHY

Porter, Michael E., Competitive Strategy: Techniques for Analyzing Industriesand Competitors, New York: The Free Press, 1980.

SWOT Analysis Nike, Inc. http://marketingteacher.com/SWOT/nike_swot.htm

Under Armour Investor Relations Report, 2010http://investor.underarmour.com/investors.cfm

US Athletic Retail Market Report, 2009 Edition, http://www.prlog.org/10333892-us-athletic-retail-market-report-2009-edition-new-report-by-koncept-analytics.pdf.

Van Dusen, Steven. The Manufacturing Practices of the Footwear Industry: Nikevs. Competition, University of North Carolina. Unc.edu/~andrewsr/ints092/vandu.html.

Wright Report: Nike, Inc. Company Profilehttp://wrightreports.ecnext.com/comsite5/bin/comsite5.pl?page=report_description&report=COMPANY&cusip=654106103