REPLY

RYAN

The strategic level of management for Nike would decide whether or not to sign an exclusive deal with the NBA.  This decision is made less on trends or patterns but rather strategic for the company (Saylor, 2015).  Nike must consider whether or not the deal to pay for a NBA contract to create the apparel for the NBA.  This deal must be analyzed to look at how much they will make from sales in apparel as well as brand recognition as their logo will appear on NBA jerseys. Their current deal which costed them around $1 billion dollars expires in 2025 (Rovell, 2015).  The executive managers must decide whether or not to offer a deal and how much to offer for these exclusive rights. 

Nike could utilize IT systems to analyze the data before the current deal, and after to see how sales were affected by the deal.  The system would help judge if the sales volume met the projected sales prior to the deal.  Judging by the results, the strategic level of management for Nike would need to decide how much the contract is worth and how much they are willing to pay the NBA in the future for these rights again.  This includes not only looking at the data of sales during the period, but also the market share increase as a result of the deal, as well as the brands image.  Nike has a huge impact on sports and controls a huge market of the sales within sports, however if the company is not being represented on the best platforms such as the NBA, many people will start wearing the companies that are. The IT system must analyze all the sales increases, and determine how much the next contract is projected to increase sales, this then can be used to estimate how much to offer the NBA.  

References

Rovell. (2015). Sources: NBA, Nike have near-$1B apparel deal. ESPN.com. https://www.espn.com/nba/story/_/id/13053413/nba-signs-8-year-apparel-deal-nike

Saylor. (2015). How Information Supports Decision Making. https://learn.umgc.edu/d2l/le/content/579460/viewContent/21818890/View