Nike+Report - strategic management PDF

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strategic management...

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Rihame Zidouni

NIKE Report : Introduction: Each company has its own strategy to succeed , Nike is one of the top companies all over the world and its due to the strategies that they are following, after some researches i have found that the most their strategy is mainly based on Marketing. Nike strategy to become the leader of the market : Nike spend a lot of money on advertising its products and this can be seen in their reports of 2018 in selling and administrative expenses (https://news.nike.com/news/nike-inc-reports-fiscal-2018-second-quarterresults) Nike focuses on sponsorships, internet marketing, email marketing, and utilized multimedia marketing compains . Nike has been given various awards for their advertisements (Emmy award twice for best commercial, advertiser of the Year in 1994 and 2003).   

Nike focuses on selling the "Emotional Benefits" of their product Nike embraces New Technologies. Nike provides a wide variety of products to a large number of sports to capture greater market share.  Nike focuses on product quality and creating products that help athletes perform better.  Nike buys out competing sport product brands. For their grand strategy, Nike utilizes innovation to produce top quality athletic footwear and apparel. As a result of devoting vast resources to the research and development of its products, Nike has captured the largest market share in the athletic footwear and apparel industry and continues to be the leader of quality products.  The nike strategy implementation include : Corporate Culture - Nike has created a corporate culture rich with employee loyalty and team spirit.The company chooses to call its headquarters a "campus" instead of an office. Employees are called "players," supervisors are "coaches" and meetings are "huddles." These terms go a long way to make the daily work experience less than dull for the lucky employees.

Leadership -Nike’s top management consists of a committed group of executives all bringing together vast experience and knowledge. This style of leadership leads to relationships of trust and respect. The company culture lends a hand to the fact that top management’s teamwork style has spread throughout the organization.  Nike Strategy Control include : Establishment of Standards -. Nike utilizes standards such as net profit, earnings per share, return on investment, return on equity, sales growth and asset growth. Performance standards are also established and checked regularly. Some of the areas in which the company has established standards are productivity of productions sites, competitive position in the United States relative to the global market, technological leadership in comparison to competitors and overall social responsibility and the public’s perception. Evaluation of Performance - The comparision of the performances are important to Nike as a comparison of past performance to present performance as well as in our attempt to forecast future results in these areas. Correction of Deviation -Though Nike has established profitability and performance standards, correction of discovered deviations has been a slower and less timely process. The weaknesses of Nike strategy are : Products - Nike has had much success as a result of collaborating with other companies within the sports and fitness industry, Nike has initiated a more aggressive program to review product collaborations that are outside of our core basis of products.

Pricing -In general, Nike’s products are considered to be of higher quality and as a result have higher prices relative to their competitors. While the prices are realistic given the nature of the products that nike offer to its consumers, at times the consumers may not agree. This presents a weakness. Nike and its respond to the competition :

 Nike Thrives and Excels Because of Competition Existing Actually, analysts state says that when Nike’s competition is doing a lot, Nike tends to respond even better. When nothing is going on, Nike leads the pack, but it’s not as innovative , i think that when you’re being challenged, you get busy, you hustle, and you do everything better.”

 Nike Stays Ahead of their Competitors For example, Nike launched their website (1999) before their competitors: Foot Locker (2000 launched) and Adidas (2006 launched website). This is 7 years ahead of Adidas. It also is noted that it can be reflected in the website sale results - Nike in 2011 had more than four times the sale than Adidas. Nike was one the first sports brand companies to utilize social media.

Conclusion :

I think that Nike is having a really good strategy and its reflecting the hudge sales and revenues that the company is making each year and also that’s why they are leading the universal market and having a real advantages camparing to its competitors.

References :  https://www.referralcandy.com/blog/nike-marketing-strategy  http://mba-lectures.com/management/strategic-management/1178/key-

success-factors-of-nike.html  https://www.nike.com/nikos/p/nike/en_IN/...