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Nike Company

Nike is an American based apparel company that is well-known worldwide. It has since incorporation in 1964 been the leading company in the footwear industry. Despite all this prosperity, the company has been faced with a lot of challenges in the recently include; increased competition in the market, its brand power has declined and its expenditure has also gone up within it. Due to these challenges this paper looks at how these problems can be addressed so as to ensure that the company continues to lead. I look into the possible solutions to the problems so that the company can use the recommendations herein to ensure that the negative on performance is curbed early thus ensuring its continuity.

Problems

1. Increased company’s expenditure.

This has led to increased financial losses in the incorporation. This is because these kinds of costs have eaten so much into the company’s profit margins. Increased operational costs have also resulted in increase in losses. Increased costs is associated with the integration of the total losses experienced from various departments and these include the finance and procurement, (Mallory, 2016).

2. Decline in the brand power

This has also led to increased financial losses. The reduced market share pushes the customers away because the products are no longer appealing and meeting their needs and wants. This therefore forces the company to sell its product at a lower price so as to keep up with the increasing competition.

3. Increased competition in the market

Other players in the industry have led to increased competition in the market. Therefore, Nike is forced to take action measures to curb this and one of the actions is the price reduction.

Recommendations and Implementation Plans

1. Corporation Increased Expenditure

The company really uses a lot of expenses to acquire and store inventory. I therefore recommend that there should be proper inventory management because this will eradicate unnecessary costs. This will include storing goods over a short time before being used in manufacturing process or being sold. Implementation can be achieved through: standard management. Here, poor management should be eradicated.

2. Decline in Brand Power

Here, the company should perform a market research. These include the product’s features and attributes that are appealing to the customers. The uniqueness of a product promotes its sales and lasting in the market, (Shaw, 2011). For this to be implemented, market testing should be undertaken. Product testing the market is essential in helping improve products and this will help come up with a premium price for the product, (Jerry & Thomas, 2017). Secondly, brand positioning should be adopted. This will give Nike an upper hand in advertising its product, (James Corrigan, 2017)

3. Increased competition levels

The recommendation here is that the company should identify new niche markets. Since it already has markets that are saturated with competition, Nike should reach out for new markets. This will help expand its market share and thus competitive advantage. Implementation can be through; understanding the customer needs and wants. A communication link should also be established to or with the customers.

References

James C. 2017, October 20, Nike stops manufacturing golf club and balls, https://www.telegraph.co.uk

Jerry, W., Thomas. (2017), November 22, product testing, https://www.decisionanalyst.com

Mallory S. 2016, June 27, Nike challenges, https://businessinsider.com

Shaw R. 2011, “reclaiming America; Nike, clean air and new national activism.”