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Nike's Global Competitive Advantage

1658 Words7 Pages

Introduction In this essay Nike Inc. will be examined on how it achieves global competitive advantage. Nike’s business is known to be design, development and selling athletic footwear, apparels, equipment’s, accessories and services. The headquarters is located in Beaverton, Oregon, United States of America. Nike operates more than 850 retail stores worldwide (Statista, 2014) and employs approximately 56,500 employees worldwide (Nike annual report, 2014). Four components containing home country, supplier country, customer country and partner country of Spulber’s (2007) star analysis framework will be used. The following theories will be used for further analysis of the framework with Porters diamond model for home country, Porters value …show more content…

This entry was to explore the Indian sports and fitness market. Nike used this mode of entry as a strategy to adopt to the consumer needs in the country (Ghosh, 2010). Nike acquired Britain’s brand Umbro in 2007 as it was the world’s leading supplier for soccer in Britain and around the world (Kennedy, 2007). Nike acquired Converse in 2003 in order to enter the mass market channel (business journal, 2003). As Converse is known for its low prices and traditional shoes this acquisition will enable Nike to sell its athletic shoes using Converse brand at Wal-Mart and Target without diluting Nike’s image (Wayne, …show more content…

These strategies has been due to various barriers it has faced and expand its market and brand. Acquisitions of brands allowed Nike to be the leading brand, explore new markets and brand recognition in new markets while reducing its major rivals in new markets. Using these strategies allowed Nike to gain competitive advantage in the global market.
Partner country Partner country can be defined as the firms Nike partner’s to take the advantage of certain activities. The partnering firm’s country of origin is called as the partner country. This partnership can be for short or long term, however the firm’s identity will not change due to this. To explain this further the theory of strategic alliances will be used.
Nike partnered with the Switzerland firm Bluesign technologies (Nike Inc., 2014). Using this technology allowed Nike to increase the supply of sustainable materials and chemistries in its production process. This partnership allows Nike to use the assessment tools and data of Bluesign to Nikes material suppliers (Environmental leader, 2013). Using sustainable materials chemistries from this partnership allows Nike to gain an upper hand from its

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