Case Study on the Example of Nike

1. What are Nikes competitive Priorities and how would you rank order them?

Answer:

Nike is a retail giant that sells its product in 120 countries with different product line. It does business with 750 to 800 factories from around the world, many in Asia and some in United States. On the other hand Nike has also 27 order management systems around the world. Therefore to have a good imperative system Nike competitive priorities are:

i) Time: As Nike is a worldwide business that involved in well-organized supply chain system. Nike has recently introduced new supply chain coordination in Beaverton, Oregon which now takes about 6 months of supply chain that use to take nine months to a year. But now their goal is to get their orders cycle in 3 months.

ii) Flexibility: Nike is able to produce and manufacture their product from different lines for different markets worldwide.

iii) Innovation: Nike has new products every four season, with over 15,000 different styles per season. (Collier and Evans,2010)

2. Should Nike reduce product proliferation in an attempt to reduce their supply chain complexity and cost?

Answer:

No, Nike should not reduce product proliferation as it is not the problem with product, but the problem is with the project, were the planners were not properly trained and did not integrate well with the ordering of the project. If the demand for the Nike increases this could harm their output, thus if Nike keeps the limited supply this could benefit them.

3. What impacts would lower/higher tariffs have on Nike’s supply chain, strategy, and sourcing?

Answer:

As tariffs rates have fallen, Nike has outsourced its manufacturing and