The diversification lowered the overall risk of the firm and created an information network among the divisions, which was critical for the company to gain competitive advantage. The loyal customer base was another strength. The $60 billion assets that under the company’s management provided the company a positive brand image and made it easier for the company to attract new customers. Weakness:
Nike continues to expand quarterly, and its companionship in Footlocker’s international outlets helps stimulate it expansion.
The corporation was presented by the media over demonstrating the circumstances below which the factories of Nike were working in in several countries and the insignificant standards that had to be achieved by the workers. The goal of the company was only to abuse its workforces so as to make monetary gain. The detection of the company’s misconducts directed to constant attacks & firmly approvals had to be established so as to recover the immoral situation. With the media emphasizing the difficulties in how Nike is working in underdeveloped countries, the Nike had to modify its working strategies.
Their swoosh logo and "just do it" slogan are highly recognized among the public. Innovation is the key aspect to Nike's competitive advantage. According to an article posted in Chicago Now, Nike President Charlie Denson said, "Our ability to be authentic, stay connected, and remain distinctive through innovating across all areas of our business is a definitive competitive advantage." The Nike Corporation prides itself in being a leader in their industry because of their innovation, and protecting these ideas with patents. Nike currently has approximately 3,750 patents to this date, which is way more than any other competitors including Adidas and Under Armour which are in the same
Nike has sustained positive revenue in a worldwide market focusing on a healthy and active lifestyle. For the past 3 years Nike has gained a gross profit ratio of 8.73% in fiscal of 2013, 10.28% in fiscal of 2012, and 8.28% in 2011 . Thus showing the financial power Nike has, well the firm holds a net income of 2.5 billion in the fiscal year of 2013. Nike’s largest product category is footwear, representing over 55% of the companies revenue. Nike uses their financial resources ability to obtain large advertising plots, whether it is a commercial on television, advertisements on the Internet, or product promotion in athletic facilities.
Nike has gains great reputation for its manufacturing and supplying of sports apparel to people from all corners of the world. It is situated in the United States of America and the headquarters is in Beaverton. It can also be regarded as a leading manufacture and supplier of athletic shoes and sports equipment among all companies. In the year of 1964, there were two predecessors of the Nike company which are Bill Bowerman and Philip Knight, they have found a company name of Blue Ribbon Sports. In year 1978, the Blue Ribbon Sports changed into Nike Incorporation.
Goals Nike focuses on pursuing opportunities and improving their product to enhance the human potential. Thereby they create product, services and experiences for athletes helping them overcome limitations such as climate and road types. Core Competency and Sustainable Competitive Advantage Nike’s have maxims to help Nike employees to create better products and provide better services for the customers. Henceforth creating better customer value compared to companies.
NIKE. INC has always been the brand of tomorrow, seeking to find new interesting ways to captivate and capture the hearts and minds of both young and old alike. It all began in the 1960s when Phil Knight along with his coach, Bowerman came together to form an enterprise. They first started off as Blue Ribbon Sports, which distributed shoes from Onitsuka Company from Japan and eventually became Nike, which means Goddess Of Victory in Greek. As of today, this American multinational company has gone beyond mere shoes distributor, ranging from the vast variety of sports shoe to sports equipment and attires.
Nike has managed to shift their Manufacturing unit into Asian country’s were the labor is cheap to be exact wages of USD1 an hour were so little as one-tenth of those given in the US. No wonder that a pair of shoes which were sold for $150 in 1991 is made by indoasian women who were 58 cents a day but the situation has started to change and due to that reason the company has managed to minimize cost of production and not only double triple the the revenue as comparing to the year 1996. Finally we come up with promotion and advertising campaigns which became a grand success not only because they introduced sportspersons , they also introduced innovative ideas and wise strategies and the image of the Product, due to this process we can say that Nike targeted a huge no of audience and created a Prestigious brand which will be easily available for average people . they also came up with great tag lines such as ‘there is no finish life’ , and in the 1980 they changed it into “ JUST DO IT “ these quotes of tag lines are considerd very simple but very attracting and extremely encouraging for the customers .
CORPORATE LEADERSHIP SEVEN HABITS AND DEMING’S 14 POINTS AROOJ ZAFAR 01-221162-105 SEVEN HABITS AND DEMING’S 14 POINTS Stephen R. covey the author of the book “principle centered leadership” explained ways to establish personal effectiveness. In his book, he discovered seven habits that allow people or organizations to develop commitment towards stable and unchanging principles in their behaviors and interactions; in the state of interdependence. He linked total quality with principle centered leadership as it allows people to be more intrinsically motivated to seek stability and continuous improvement. Interpersonal effectiveness is essential to total quality as it allows organizations to develop relationships within the departments,
Carmen Wylie Gr 11 Life Orientation- Task A Goals and Mission Statements Question 1: Source A and B are considered to be examples of personal mission statements. Would you agree? Explain your answer.
Simply put, Nike’s target market is mainly customers who have more concern for the quality and utility of the product than they have for the price at which the product is being sold. This helps to ensure that pricing never has to be adjusted downwards in attempts to woo in a larger number of customers. For any company to achieve success from the marketing strategies that it has put in place, it has to ensure that its strategy is flexible enough to keep up with the changing times and to also accommodate a large variety of customers. So as to do this, it is imperative that the products being produced by the company be innovative enough to exceed what is being provided by competitors in every possible way. Nike chose to take this into deep consideration and this resulted in it making a few changes on its marketing strategy.
Therefore Nike’s new priorities is making sure that their factories were not taking advantages of its workers anymore, and to ensure for a competitive wage and a safe work environment is provided for each worker. So, some ways to overcome these problems are: a) They need to establish a worldwide monitoring system of their countries spread all around the
Task 1-Vision,Mission,Goals and Objectives My Mission Statement To work hard and do the best to my abilities in all I do, to have respect towards others and to listen to those who are wiser and have more to teach me. I believe that everything happens for a reason. My golden rule is IF IT IS MEANT TO BE IT WILL HAPPEM.
The fourth expansion strategy of Nike Inc. was product diversification. While it is essential to emphasize that the outsourcing strategy was enormously effective, it is also important to know that Nike Inc. did not rely on footwear production and importation alone, rather the company diversified into producing and selling apparel. According to the company’s financial report, revenue from the sales of apparel was estimated at 29% while footwear was 59% respectively (Locke, 2002). This diversification, no doubt, combines with outsourcing its factories to lower-cost countries and selling its products at an affordable price was the catalyst to Nike Inc. expansion strategy. Explain what the positive and negative impacts of this strategy were.
