LASA 1—Preliminary Strategy Audit

Running head: EXTERNAL ENVIRONMENTAL SCAN 1

EXTERNAL ENVIRONMENTAL SCAN 6

External Environmental Scan

Sherry L. Crowe

Argosy University

B6028-T A01 Capstone Experience in Integration & Strategy

Module 2, Assignment 2

Dr. Wan

March 30, 2016

In today's business, e-commerce is becoming more effective in the modern world. Two major companies stand out, one solely relying on online business and the other both store and online services. Most individuals are familiar with these companies, Amazon and Nike. Both of these companies carry strong points in their own right, and as demand for their products grows, so does opportunity. Amazon was once very plain and unattractive, but was still the primary bookseller for consumers on the Web, and Nike was a small growing firm that made athletic shoes imported from Japan, making its presence in the American market.

These days, but with the advent of PESTEL evaluation, managers have been able to make effective choices for their organizations. PESTEL analysis lets in a commercial enterprise to conduct an, "analysis of 4 outside elements which could impact the overall performance of the agency. Those factors are: Political, monetary, Social, and Technological" (CBS commercial enterprise network, 2011). Amazon has used these elements capitalizing on their strengths to threaten their increasing market. For example, through a technological factor of view, telecommunications technologies for the internet have been growing, giving consumers the potential to shop for their domestic computers, laptops, and cellular telephones. This is relevant to Amazon because it will increase the frequency of use and sources for net by means of on-line customers.

Amazon has integrated cloud computing into their business approach, supplying them the edition with the generation and cultural transitions. Cloud Computing gives individuals the potential to get admission to programs at any second, "having every piece of statistics you want for each thing of your existence at your fingertips and ready for use" (PC Magazine, 2011). Amazon has been looking to enhance internally with the use of their cloud computing market to beautify their internet services, attracting extra clients to their website, "Amazon web services desires to be the information center for the sector" (Bloomberg, 2011). The method of Amazon in cloud computing is to influence purchasers its big databases and internal studies and improvement strengths imparting effective tools, "whilst cloud computing is adopted via an employer, they'll discover themselves thrown into the pool with the relaxation of the web global in many approaches" (ZD internet, 2011).

Nike any other chief in its market, founded in 1962 by way of invoice Bowerman and Phil Knight. What commenced out as a distributor of Jap athletic shoes to American purchasers later have become a traditional and non-traditional distributor for extra than100 countries focused on its number one market areas: America, Europe, Asia Pacific, and the Americas (searching for Alpha, 2011).

Unluckily, one most important factor that Nike has fallen towards criticism through outdoor, outside forces is their proportion of troubles with exertions and manufacturing unit conditions resulting in awful publicity and declining income. Purchasers trust that Nike, Inc. has a social obligation as a company to fix situations together with labor and factory conditions.

Nike lays several quantities of techniques to fool their customers, athletes, and sportsmen. Nike strives on brand picture, its affiliation with a unique emblem and slogan "just do it" facilitates popularize their photograph globally in all areas of game and style. Nike's advertising method includes emblem image, Nike's website, customer choice, and product differentiation, which helps them separate themselves from the competition. They goal the pleasant, professional athletes and athletic teams, giving Nike the ability to attain a big amount of athletes. Following their technique in selling their photograph, Nike applies its merchandise by using associating fulfillment with product. For example, while an athletic crew or athlete sponsors Nike's emblem of athletic footwear, the logo can be paired with a success story. This shape of advertising may be described as emblem positioning or brand architecture. Brand positioning can be satisfactorily defined as a motivating reason to buy one's product over others, "is guided, directed and brought via the emblem's blessings/reasons to buy; and it focuses at all points of touch with the patron" (Seeking Alpha, 2011). Nike creates cost and sustains aggressive gain over other competitors with this technique because a photograph is a massive thing in trendy markets, a large variety of customers are possibly to broaden product intimacy; individuals who care extra about the best in place of the rate. This takes us to Nike's rate approach, which they target customers who cognizance more on product intimacy and care much less approximately the charge. Giving Nike the benefit over different competition, placing better expenses for its merchandise; customers who accept as true with a product to be of high fine are at risk of pay a higher fee.

Apart from marketing strategies Nike has embellished on the expanding market of technology. In efforts to collaborate with issues of climate change in business, the challenges and opportunities that growing organizations seek, Nike has designed a tool to advert such issues. They released a version of their Environmental Apparel Design Tool back in December 2010 in hopes that companies would use it and build from it. In efforts to stay competitive within their market and sustain a leadership of sports apparels, Nike has given designers this tool to gather information on their designs at earlier stages of production, "constantly giving them feedback and educating them on how to make better choices" (Bardelline, 2010). This sets Nike apart, giving the organization a competitive advantage.

CONCLUSION

In this rising market, measurement guidelines are tough to come by. Organizations can calculate market share and profitability to help measure their success, but it can a bit difficult at times to compare. Nike is the largest company between the two, and looking at profitability it overshadows Amazons. Although Amazon continues to move forward, and its brand recognition and customer loyalty is strong. Using profit as a measurement guideline could be effective, but companies will need to keep track of different market segments to ensure they are not accepting less than the best outcome. Both companies have their strengths and advantages within their markets, Amazon leaders of e-commerce and Nike leaders of brand positioning to market its products. Whatever the future brings, it is clear that these two strong brands will continue their traditional core businesses techniques in search of additional lines of business.

References

Bloomberg. (2011). Amazon looks to Widen Lead in Cloud Computing. Retrieved from http://www.businessweek.com/technology/content/apr2010/tc20100428_085106.htm

CBS Business Network. (2011). PEST Analysis. Retrieved from http://www.bnet.com/topics/PEST+Analysis

Management Study Guide. (2011). Brand Positioning - Definition and Concept. Retrieved from http://www.managementstudyguide.com/brand-positioning.htm

PC Magazine. (2011). What is cloud computing? Retrieved from http://www.pcmag.com/article2/0, 2817, 2372163, 00.asp

Seeking Alpha. (2011). Nike Inc. (NKE) Description. Retrieved from http://seekingalpha.com/symbol/nke/description

ZD Net. (2011). Eight ways that cloud computing will change business. Retrieved from http://www.zdnet.com/blog/hinchcliffe/eight-ways-that-cloud-computing-will-change-business/488