Nike

Nike is one of the world’s renowned brand for sportswear. One of the primary goals is to develop an appropriate [program that addresses the needs of the customers. Being one of the world’s market  brand, the company has strategized itself to meet the global market trends. The company specializes in sportswear products such as footwear. The company has been able to strategize itself into the current market trends with an aim of addressing. The company continues to focus on two things which involve product innovation and product quality. Through these two strategies, the company has acquired high popularity due to product quality and continues creativity in the market. Besides, its ability to diversify and creates a good number of sports products has positioned the company in a good market position. The process also provides an opportunity to develop appropriate plans for mitigating risks and addressing significant problems influencing the company’s productivity and performance. Nike’s financial growth is evident through its excellent performance in the market. It salvation winning has driven its victory of one consumer. Based on the2018 reports, the four quarter revenues have increased 13 percent to 9.8 billion which was then operated by a doubling digit revenue in the global markets. Also, the diluted earnings per share increased by around 0.69% which was attributed to the strong revenue growth gross and the lower tax rates. Furthermore, the gross margins expansion has partially contributed to the administrative expenses which have also seen the company grow financially.

Nike general strategy is to have a competitive advantage by focusing on product mix. According to Michael Porter, Nike achieves its comparative advantage by developing a generic blend. Besides, is growth strategy has focused on innovation and development of the business. Based on this strategy the company grows annually. Since it was founded in 1964, it has grown to be one of the largest companies in the world.

2 Nike’s growth also depends on external market analysis. External factors determine the rate at which the company achieves its strategize by focusing on the essential aspect to prosper in both the local and global market. Being one of the largest sports markets, Nike provides an opportunity for accessing the company’s macro environmental forces.  For the case of Nike, PESTEL analysis has provided it with more opportunities in analyzing the right market tools and mitigating risks identified in both within an outside the company.

Nike sports shoe is one of the subjects on the political landscape. The model deals with the legal and political influence on the operation of the company. Therefore a stable political climate provides an opportunity to access major world markets. On the other hand, it offers the chance to expand on free trades and improve governmental supports. Nike has grown steadily through a stable political climate. Besides, it has been able to develop free trade policies to facilitate market penetration overseas.

Economic factors have also played a crucial role in Nike Inc.  It has presented both opportunities and threats to the growing revenues of the company. For instance, developed industrial markets such as the US has provided an opportunity for the company to grow. Besides its growth continues to stabilize in such countries. On the other hand, the developing markets have threatened the company’s growth especially those linked to foreign countries. Besides the growth of other company’s across the growing markets have also influenced the company’s performance.

Social, cultural factors have also played a crucial role in developing the growth of Nike’s company. The increase can be attributed to the diverse attitude that people have toward the company’s products. Besides the developing countries presents an excellent opportunity for the company to pursue the growing wealth. Besides, the safety and quality of the products are one of the major aspects that the clients check in buying the company’s products.

Nike has a focus on developing technology-based products that address the current needs required by consumers. Digital marketing is one of the areas whose company has benefited in addressing significant issues linked to advertising and providing access to products through digital platforms. Mobile technology and digital marketing platforms offer an opportunity for the company to access more clients and address significant issues raised by consumers.

Ecological factors have played a significant role in the growth of Nike. The impact of environmental regulations determines the ability of the company to address its sustainability challenges.  For instance, The new ecological laws provide an opportunity for the company to adopt the required sustainability strategies. However, increasing rates of climate change threaten the company’s resources and productivity.

Legal factors have also contributed to significant risks threatening the growth of the company. For example, the increasing safety and employment regulation provide an opportunity for the company to address substantial challenges linked to environmental laws. Developing countries further pose a threat to the company. The rates of production are more likely to increase.

  1. Michael Porter model developed analysis w hic h provides an opportunity to understand the effect of the external factors on the companies achievement. The competitive positioning of Nike boosts its capabilities in the penetration of the new markets. The model provides a standard guideline for accessing competition. Since it was founded in 1967, the company has retained as a leading position in the sports industry. Some of that Nike’s five forces of analysis include the competitive rivalry which has had a substantial effect on the company’s productivity and performance. Besides the bargaining power of the company provides an opportunity for the buyers has also contributed to financial growth. The bargaining power of the suppliers also offers the chance to access its marketing competitiveness. Threats of substitutes and new entrants have both related moderate and weak forces to the company. Competition is crucial since it determines the way Nike maintains its competition in the footwear industry. It influences the performance of the first such factors can be determined by the low market growth and aggressiveness of the company.
  2. Nike’s financial resources and capabilities provide an opportunity for t to grow across different markets. Nike has a stable growth in its financial skills. Furthermore, it has adequate resources that enhance the growth of the company. Therefore its financial resources are valuable and attractive to the industry’s growth. Even though competition is on the rise, the competitor’s financial capabilities have not reached that of Nike

Production and supply chain management has achieved a maximum rate required for outsourcing the products to other countries.  Its competitive advantage can be attributed to the usable supply chain system.

Marketing p products and innovation also have positioned the company as one of the most competitive brands. It sponsors athletes and other sports activities thus providing an opportunity for the company to develop reliable means of supporting a  large number of charity events. It has a threat to achieving rarity since other companies are increasingly imitating the product. However, its management has organized itself to capture the value to realize the potential of its valuables fully.

Nike has many infrastructural capabilities that allow it to achieve a competitive advantage among its competitors. It extensive marketing channels enabled it to communicate to its current consumers thus maintaining a competitive advantage. Also, its distribution channels have helped it to build a dominant business model.

  1. Nike’s strategies to become one of the world’s leaders. It has established its brand and logo through an extensive marketing investment. Nike along its subsidiaries designs develops in selling athletic footwear. SWOT strategy has contributed to the success of Nike’s company.

The company has a strong global brand; its products are most valuable. Besides it has a strong partnership with the basketball players thus boosting the company’s sales besides the low cost of production continues to increase the company’s productivity. Substantial research and development have also encouraged innovation strategies. The uniqueness of the company’s products has expanded its competitive advantage.

On the other hand, Nike faces different weaknesses ranging from the ongoing perception of oo labor and low wages. Moreover, its products sell at high thus providing room for its competitors. Some of the competitors aim to manufacture similar products at lower prices with the aim of attracting a significant number of customers. The company is thus threatened when a particular economy falls into recession

Nike has substantial opportunities. For example, the emerging markets provide an opportunity for the company t gain the desired potential. Most of the emerging markets such as the Middle East have a chance of driving the future demands of Nike. Furthermore, being at the forefront of adopting new technologies.

The company also faces different threats such as competition and currency volatility. Many companies have emerged with similar footwear products as those of Nike. Besides the competitor companies have come up with new ways of manufacturing leisure shoes an availing them in the market with the low process thus threatening Nike. The demand for Nike’s products is based on sports events. Besides its demands also vary based n a particular trending design. Thus, significant changes in such shifts could tamper with the marketing and sales of the company’s products.

Nike remains a dominant force in the global footwear market. The company continues to grow even in the new markets. Nike is one of the companies that has been influenced by external forces. Political climate determines the rate at which stabilizes in the international market. Other factors such as industrial, social le technology an ecological have different impacts on the company. It has been able to adopt the required strategies stabilizing its financial resources and commercial capabilities. Nike has gained a global position in the footwear industry. Therefore, different internal approach similarly influences the company. Its strengths rely on many factors that have promoted the company to a competitive level.

On the other hand, the company faces weakness in establishing a reliable flow of the products. On the other hand, it has an opportunity of accessing new markets and developing new products that address the technological expectations of the consumers. However, it is threatened with the rising competition and production of footwear with a cheaper process which is in contrary to the high-valued prices linked to Nike’s footwear.

 

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