Nike Corporate Level Strategy Analysis.
Nike's corporate level strategy includes a moderate level of diversification. The operational relatedness between businesses is very high. They share most information and technology needed to succeed. Nike falls into the category of related constrained, since less than seventy percent of revenue comes from a dominant business and all businesses share product, technological and distribution linkages. Nike's diversification is related because the firm builds upon or extends its core competency and resources/capabilities to create value. Also, economies of scope are incorporated. For example, Cole Haan line of luxury footwear and Bauer hockey utilize cost savings from capabilities and competencies that were developed in one of its businesses, Nike, and used in the others. Nike expects activity sharing among units to result in increased strategic competitiveness and improved financial returns, which it has seen. Moreover, intangible resources are difficult for competitors to imitate and/or understand. This allows the other businesses to gain an advantage immediately over competitors. .
Incentives and Resources.
Nike has many incentives to diversify, but most of them are internal. Nike has never left its core competencies. It is hard for you to tell whether or not Nike has diversified in the true sense of the term. Nike enters new markets and forms new parts of the company. If they acquire another company for their technology or resources, they always name these companies, "NIKE". .
Nike has chosen to diversify for internal reasons like lower firm risk. Nike realized that if they were to stay exclusively in the athletic shoe market the risk of market loss was substantial. With competing companies like Reebok, Puma, and Adidas, Nike knew that they would lose market share in the shoe market. This reason forced Nike to look to different areas of the sports world.
Nike Nike, Inc. is the worlds #1 athletic shoe and apparel seller. ... As a result, this is bringing Nike a lot more competition to surpass. ... Nike has 20,000 plus retail accounts throughout the U. ... (1) Nike's product line: Nike should take a close look at their product line. ... Therefore, Nike needs to look at downsizing its product line. ...
Nike Shoe Factory Controversy There has been a lot of controversy lately about the working conditions and low wages in overseas Nike shoe factories. ... Nike became the number 1 seller of shoes in Canada and the company reaches out and forms Nike International Ltd to service more than forty foreign countries. ... Nike receives a small dip in their gross revenue. ... In response to all these allegations, Nike did many things. ... In the statement issued by Nike, available on Nikebiz.com, it says, "No contract worker making Nike footwear product can be under the age of 18. ...
Nike, the number one sport-shoe producer, selling $9.2 billion worth of shoes per year claims that "there shall be no discrimination based on race, creed, gender, martial or maternity status, religious or political beliefs, age or sexual orientation." So why is an average wage for an Indonesian Nike factory worker $2.60 a day? Nike clothing retailers have enjoyed huge success since there debut opening in 19__. ... Over the past decade, tens of thousands of students, people of faith, activists, and consumers have demanded that retailers take responsibility to clean up sweatshops such as Nike...
All of Nike's chief products are athletically inspired. ... Nike's shoes also address the market for outdoor activities. ... Nike is further addressing new niche markets every year. ... An excess of inventory in 1985 caused Nike to reduce prices this pushed Nike from the top spot in the market. ... Nike is very financially strong. ...
In the spring of 1972, the first shoe to include the Nike swoosh was introduced. ... The Waffle outsole transformed the running world and soon after, Nike Air evolved Nike's revolutionary impact on sports. ... In 2001, Nike introduced Nike Shox, unique columns of engineered foam, and a new revolution in cushioning began. ... The diversity in such size is helping Nike evolve its role as a global company. ... Nike is, and always has been committed to evolving and improving their products to remain leaders in their industry. ...
In contrast, 95 percent of that 120 dollars will essentially be turned over to the wealthiest American Nike corporate executives. ... Nike has been known to state that they do not know about the reprehensible conditions where their shoes and apparel are manufactured. ... Nike's sweatshops employ mostly young women and girls; in fact they are 90% of the work force. ... (Lormand, 2) Nike is doing little to help Chinese workers and their communities, to become self-sustaining, economically. ... Nike would feel the effect of lower sales, and begin to make the changes, that would uphold ...
One of these is the Nike Company's internal environment. ... It is these departments that impact Nike's marketing decisions. ... This increases the demand for the Nike products. ... Buyer behavior has affected the marketing activities of Nike. ... Nike's positioning strategy is by user. ...
