NIKE Business Strategy Assignment Help
Management Information System:
Management Information System is the best tool for any firm to assess and analyze their efficacy and efficiency in order to facilitate the growth of the firm. Being the most publicly traded sportswear and equipment supplier in the United States, it has organized its such a fashion so that the work is divided well, and the delivery too is in accordance with the area, the season, and all those factors which can lead to proper distribution of the goods. Technology, human resource and data being the chief components of this analysis, NIKE undoubtedly has worked and continues to so even today.
Technologically, it brought out innovations like the current pattern of the designing which supports grip and this became so popular that it was adopted by all the other brands too. Human resource being the most delicate matter, is dealt by the company skillfully by both exploiting the working skills of its employees and at the same time pampering them with the best services and package in comparison with the other marketing companies not only enhances the growth of the company but at the same time gives a good rapport about the company. Data or the raw material which the company takes is basically from the cheap economies which give out the best material needed for the manufacturing of the goods. This means that managerially, NIKE has been handling its business adroitly (Arons, 1999).
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Porter’s Five Forces Model:
A framework to analyze the business strategy development, this specific method contains the potential to analyze whether any firm is on the correct lines to gain profitability or not. These include, competitive rivalry within an industry, being at the center of the model, in the case of NIKE, being a brand in the oligopoly market makes it highly competitive needing a strong brand identity and at the same time product differentiation which has been remarkable in the area of this brand, makes it stand out of the crowd (Silva et al, 2006). Next in the line is the low entrance of new companies which are strong and well established brand name. Third, as the suppliers are low in number, Nike’s economies are of high volume. At the fourth time, the substitutes available for this company are high and are interchangeable for comfort. Finally, the buyers are moderate at low switching costs. Overall, this strategy has and continues to tell the companies the places where they are falling apart and at the same time, work on the aspects where it stands tall and has a clout in the industry (Arons.,1999)
Value Chain Analysis:
A company works in collaboration of several other companies like the ones supplying raw materials, the retailers, those which transport the goods, etc. This whole gamut of activities in collaboration with several other players is basically what is called a “value chain”. When we look at NIKE as a brand, it is the most publicly traded sportswear and equipment supplier base in the United States. Not only this, it has employed as many as 30,000 people all over the world and had revenue access of 16 billion US Dollars as in 2007 (Arons, 1999).
As suggested by Michael Porter in 1985, business activities are divided into two types that is primary activities which are directly involved in transforming primary inputs into outputs and are generally in an organization the line of activities. Thus, coming to the primary activities in case of NIKE, it being mainly a design and marketing company and controls primary the same functions of the company. To top it all, is the technological development which NIKE has led in past forty years. The main steps it took to enhance in the sector is its waffle tread pattern which later on came out to be a common pattern, the single wrap around toe piece instead of the prior multiple pieces being stitched together and using air cushion in the sole, making it again popular even amongst other brands due to the comfort it provided. Second in the line is product designing in which NIKE has always been very innovative (Wierenga,1992). Component Manufacturing is the next thing in line which in case of NIKE is a shared process. Though the specialized foam and plastic is produced by the Nike in house management, the rest of the products are found in other parts of the world like Portland, Oregon and St. Louis, Missouri. The fourth primary factor is the assemblage of contracted firms which are more than 900 in number. Most of these firms are placed in China from where the company has been operating since 1980s. Marketing is the aspect in which the company has been an expertise, there are very planned out steps in order to reach all parts of the world. Not only has it been outsourced in all parts of the world, but the cost management has also been done in a such a fashion so that it is compatible with the financial status of the people in that part of the world. Next comes the distribution of these goods. NIKE has a web of distributors right from the decade of 1980s. Starting from China which today is the leader in exports of its goods all around the world, the company has captured the market in Asia, the most densely populated continent in the world that too at subsidized rate seeing the financial of the countries present in that segment.
Retail sales are the final primary activity which has been well maintained due to the above mentioned factors. Coming to the secondary or support activities it first of all incorporates, Infrastructure to top it all, which includes subjects ranging from the diversified portfolio to work ethics and financial discipline. Human resource being the most important component of any industry is controlled in a way that both the company and the employees share a healthy relation. The criterion set for getting promotions is consistency or knowledge of the company. Procurement is the important aspect in this ambit for time management and need according and at the time is the most important component (Silva et al, 2006)