Unit 5 Discussion 1-Competitive Advantage PDF

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Nike success is with their mission, and if they are working to fulfill that mission, it will reflect in their performance. This company needs to look at their annual revenue and compare that to the competition to understand their performance. Shareholders need to see the physical performance and the leaders at Nike need to communicate how they plan to continue the performance or improve it. Another important measure for performance is the impact on consumers. If Nike connects the consumers to the brand and adapts to the changing trends, then they can ensure high performance. Linking the customer to the brand and making them feel a part of something bigger than themselves is an excellent measure of performance. Putting the athletes at the center of the decision-making process will help Nike develop effective strategies to sustain a competitive advantage. There are three essential things to a business model are customer value proposition, profit formula, key resources and processes (Johnson, Christensen, & Kagermann, 2008). I believe Nike has utilized all three of these components well and that shows in their success. To recap, the measures of performance for Nike are the impact and value they bring to the consumers, and their ability to profit by using their key resources. Nike will always be in a state of competition, and it is vital for them to identify ways to remain at a competitive advantage. Nike's key competitors are Adidas, Under Armour, and Reebok. These companies are worthy competitors that can pose a threat to Nike, and that is why it is vital to use valuable resources to sustain a competitive advantage and ensure long-term success. Nike uses a cost leadership strategy combined with a differentiation strategy from their model to gain and sustain a competitive advantage (Gregory, 2017). Nike minimizes the cost of production for their products thus increasing their revenue, and this allows them to deliver highquality gear and equipment to athletes around the globe. Keeping the costs and consumer in mind when making decisions will enable Nike to stay competitive and thrive as a business. Combining this part of the model with the differentiation strategy creates value. Nike's ability to develop unique products that provide value to the customer is essential to their model. Nike's brand, marketing ability, innovative approach, and diverse culture are key elements that have allowed them to be successful in the business world (Pysh, 2017; Gregory, 2017). Combining these elements with their business model allows Nike to have unmatched performance in its industry and will keep them at a competitive advantage long-term.

References: Gregory, L. (2017, February 7). Nike Inc. Generic Strategy & Intensive Growth Strategies. Panmore Institute. Retrieved from http://panmore.com/nike-inc-generic-strategy-intensive-growth-strategies Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008). Reinventing your business model. Harvard Business Review, 86(12), 50–59. Pysh, P. (2017, October 21). The Intrinsic Value Of Nike. Forbes. Retrieved from https://www.forbes.com/sites/prestonpysh/2017/10/21/intrinsic-value-of-nike/#4306d7456271...