Nike Case Study

Contents

Introduction:        

Mission:        

Current Market:        

Porter’ Five Analysis        

TRANSFORMATION GRAPH        

Localized Exploitation        

Internal Integration        

Business Process Redesign        

Business Network Redesign        

Business Scope Redefinition        

Strategic Grid:        

Factory:        

Support:        

Recommendation:        

Acquisition:        

Conclusion        

References:        

NIKE

Introduction:

Nike, founded on September 8 1969, is an Oregan based footwear brand. It design, market, and sells shoe wear for athletes, apparel, equipment’s, accessories and services worldwide. Nike’s growth has taken over its competitors such as Adidas. Upon the foundation of the company, the aim was to make high quality shoe wear but affordable at the same time. Therefore, from the start the company gained respect and greatness and soon the demands for the brands grew.

Mission:

 “To bring inspiration and innovation to every athlete in the world” (NIKE, 2015)

Current Market:

Nike operates in six regions which include North America, Eastern/Central Europe, Western Europe, Greater China and Japan. While the growth is faster in the markets of China, and Eastern Europe. Such diversity helps the company to work on its niche market and so understand their customers better.

Revenues of Europe Nike rose up to 1.3 billion from 22.2%, while 0.3 billion from 17% in Eastern Europe. Such growth illustrates that Nike’s strategies and information systems gave them expected and successful results. On the other hand the competition remains weak as it could be seen that the company performed better than Adidas in the year of 2015. (Soni, 2016).

Porter’ Five Analysis

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(https://www.mindtools.com/pages/article/newTMC_08.htm)

Bargaining power of suppliers:

The bargaining power of supplier is low in this industry as the raw materials are available in huge amounts. Therefore, they manufactured there products from outsource companies, using the money it saved through its marketing campaigns. (Nisen, 2013) Therefore, Companies in this industry cannot depend on one outsourcing company.

Bargaining Power of Customers:

The bargaining power for customer is medium. Nike is one of the leading brand who spends large amount of their expense on marketing which makes them the most known brand. Because of that the sportswear are most selling item as athletes reach out for Nike. Due to high quality branding the substitute products in the markets don’t stand out as Nike does. Hence, Customers lose their bargaining power in front of such high branded shoe wear because they would rather prefer quality. However, sometimes customers could go for other brands if they offer reasonable prices with same quality. (Mindtools.com, 2016)