Assignment 3 - Nike Paper
chiefseven2003
Assignment3Instructions.docxIn this assignment, you are to use the same corporation you selected and focused on for Assignments 1 and 2.
Research the company on its own website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University's online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions.
Write a six to eight (6-8) page paper in which you:
Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.
Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.
Analyze the competitive environment to determine the corporation's most significant competitor. Compare their strategies at each level and evaluate which company you think is most likely to be successful in the long term. Justify your choice.
Determine whether your choice from Question 3 would differ in slow-cycle and fast-cycle markets.
Use at least three (3) quality references. Note: Wikipedia and other Websites do not quality as academic resources.
Your assignment must follow these formatting requirements:
This course requires use of Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.
The specific course learning outcomes associated with this assignment are:
· Identify various levels and types of strategy in a firm.
· Use technology and information resources to research issues in business administration.
· Write clearly and concisely about business administration using proper writing mechanics.
Assignment 2 BUS
499 for Chet Walker.doc
Running Head: NIKE INC. CORPORATION SWOT ANALYSIS 1
NIKE INC. CORPORATION SWOT ANALYSIS 7
Assignment 2: External and Internal Environments
Chet Walker
Strayer University
Professor Hassan Yemer
BUS 499 – Business Administration Capstone
Winter 2019
Nike Inc. Corporation SWOT Analysis
Incorporated in 1967 under the laws of the State of Oregon, Nike Inc. is dedicated to designing, development, and marketing as well as selling athletic footwear, equipment, accessories, apparel, and services. Currently, Nike is the world largest seller of athletic footwear and apparel selling products through Nike-owned retail stores, digital platform, retail account, and independent distributors as well as sales representative licensed by different countries. All Nike’s products are produced by independent contractors outside the United States with the equipment products produced in the United States and other countries. Nike brands include six different categories: NIKE Basketball, the Jordan Brand, Training, Sportswear, and Football. Other brands wholly-owned include the Converse which designs, distributes and licenses casual apparel, accessories, and sneakers. Converse subsidiary brands are selling under these trademarks; the Converse, All-Star, Star Chevron, One Star, Jack Purcell, and Chuck Taylor (Baek et al., 2017). The paper presents Nike’s greatest strengths and weakness and evaluates general environment as well as forces of competition.
Nike Inc.’s SWOT Analysis
Nike is among the three top competitors in the world for sportswear and apparel. The other two competitive companies include Adidas and Under Armour Company. One of the greatest strengths that helps Nike to compete in the global market is its global brand. With the famous “Swoosh” label, Nike is recognized in the whole world. Swoosh help customer to identify the unique products produced in Nike Inc. Furthermore, Nike has an intense research and development team which contributes to its innovative and evolving product range. As a result of research and development, Nike manufactures high-quality products which can be sold at a low cost. However, Nike Inc. should conduct market research in developing economies such as in Africa and developed products to fit the demand of the African market. Likewise, the company should use the Swoosh label for other apparels apart from footwear to advertise their products.
Nike is highly depended on the footwear market which might be vulnerable if for any reason this market erodes. Therefore, due to Nike’s strong brand, the company commands a premium of its price in that it sells products to the retailer at a high cost to meet its higher profit margins. As a result, there is a possibility of customers choosing products from other competitor offering products at low cost especially in the emerging market (GÜREL & TAT, 2017). Furthermore, the ongoing perception of the poor working relationship with employees complaining about low wages and poor working conditions is a great weakness that Nike faces. Nonetheless, to fix these weaknesses, Nike should apply different tactics. First, the company should invest in other apparel not only footwear. More so, the company should adjust its prices to be affordable for the customer to compete in the market quickly. Lastly, Nike should continue with its strategies to solve the issue of poor labor practices and working conditions.
As reported on Nike’s 2018 end-year financial statement, Nike Inc.’s intangible asset was at $438M. This includes the non-monetary assets that cannot be touched, seen or physically measured. The company’s core competency is epitomized by sponsored celebrities that are creating heroes, selecting athletes who succeed beyond all limits. However, with the risks associated with heroes that sometimes they fall, the competency can lead to public perception disaster. The core competence has helped Nike Inc. to command a better market share in both running and basketball shoes (Baek et al., 2017). From the core competency, Nike can derive market capabilities such as differentiation of products and service. Another capability for Nike Inc. is the cost leadership where the company can produce products at a low cost and sell at comparable cost in the market.
A Segment of General Environment
How a brand succeeds is influenced by several factors such as sociocultural, technology, economic, political and environmental (SHTAL et al., 2018). The main segment of the general environment or Nike Inc. is sociocultural and technology. From a sociocultural perspective, Nike contributes to one of the trending issues globally on fitness. With an increase in the number of people starting to workout, the demand for Nike shoes are increasing hence more products are purchased. More so, Nike has an initiative structured to empower women in the society which has seen a positive effect on Nike. As well, Nike empowers people with disabilities in America creating s strong, caring brand image for Nike Inc. On technology, Nike is reaping the best from the market. The company has included computer-aided designing and computer-aided manufacturing system (SHTAL et al., 2018). On the company’s website, customers can design their unique shoe and purchase in a very short while. With the technology, a customer can choose the colors to be included in their product hence favorable for customers.
Based on Michael Porter’s model of Five-Factor Analysis, the most important external forces for the Nike industry environment include competition, customers and substitutes. The athletic footwear, apparel and equipment industry is highly competitive. The companies include Adidas, Nike and Under Armour Company among other companies such as Puma, Anta, ASICS, and V.F. Corporation. The competition forces that Nike's faces include low market growth rate and high aggressiveness of firms. The low market growth rate has been contributed by the high market penetration and saturation in a market that grows very slow. Also, firms in the industry are highly aggressive in competing for a more significant market share. In addressing these forces, Nike Inc. has applied several strategies. According to Brohi et al (2016), Nike applies consumer affinity and connection for brands and products. This is achieved through marketing and promotion, social interaction, identification with prominent and influential athletes to endorse their brands and active engagement through sponsoring events.
Additionally, through ensuring products quality, innovation, and development of new products, high performance, and consumer value to win a bigger market share (Childs & Jin, 2018). However, Nike Inc. should include more strategies to address these competitive forces. Firstly, the company should increase awareness in the potential market not fully utilized by the industry. There is a large market especially in developing economies which need should be utilized. Global civilization and advancement are being experienced in developing countries hence need for sportswear for fitness and sporting activities. Lastly, Nike should include advertisement on social media and television. Many potential customers watch television; thus, Nike adverts should be found both on international and local TV channels.
Opportunities and Threats
Nike enjoys different opportunities that the company take advantage of to win a bigger market share. Product development where customers do not wear Nike’s products for sports only but also fashion especially in youth culture is a great opportunity. More so, the company can grow internationally due to its strong brand recognition globally. This opportunity can be supported by using global events such as the world cup for marketing. Nike Inc. can take advantages of these opportunities to win a bigger market share. On the other hand, Nike experiences different threats. The company is exposed to the international nature of trade which might lead to the company experiencing loses as a result of different currencies which might not have stable cost and margins (GÜREL & TAT, 2017). Lastly, the sports shoes and garments industry are highly competitive with competitors developing alternative products. Stability of currencies is an economic disaster and may not be easily addressed. However, Nike should develop different products to address the problem of competition.
References
Baek, W. Y., Byon, K. K., Choi, Y. H., & Park, C. W. (2017). Millennial consumers' perception of sportswear brand globalness impacts purchase intention in cause-related product marketing. Social Behavior and Personality: an international journal, 45(8), 1319-1335.
Brohi, H., Prithiani, J., Abbas, Z., Bhutto, A., & Chawla, S. (2016). Strategic Marketing Plan of Nike.
Childs, M., & Jin, B. (2018). Nike: An Innovation Journey. In Product Innovation in the Global Fashion Industry (pp. 79-111). Palgrave Pivot, New York.
GÜREL, E., & TAT, M. (2017). SWOT ANALYSIS: A THEORETICAL REVIEW. Journal of International Social Research, 10(51).
SHTAL, T. V., BURIAK, M. M., AMIRBEKULY, Y., UKUBASSOVA, G. S., KASKIN, T. T., & TOIBOLDINOVA, Z. G. (2018). Methods of analysis of the external environment of business activities. Revista ESPACIOS, 39(12).
