Executive Summary
Strategic management is the most important processes which involve appropriate formulation as well as implementation of different strategies to achieve better performance. The present study is based on the Nike’s strategic management. Nike is a manufacturer but in reality it is just a marketing company. The whole strategic management plan with appropriate formulation and evaluation is going to be developed in this study. Nike has been aided greatly by the US policies. Nike is effectively applying all their marketing and technology tactics and able to maintain their brand name as well as position in the market. The major strength of company is its positive brand image whether the threat is intense market competition. They want to go through the appropriate implementation of program in order to meet out the corporate objectives of company. For this, Nike utilizes innovation to produce top quality athletic footwear and apparel. They would like to uphold its position as the market leader in the athletic footwear market.
Introduction
In today’s globalized world one of the most important tasks for different organizations is to develop various strategies in order to attain higher competitive advantage. It is one of the most important processes which involve appropriate formulation as well as implementation of different strategies to achieve better performance. The present study is based on the Nike’s strategic management (Kaplan, 2005). It is an American multinational brand that is engaged in designing as well as manufacturing of footwear, apparel and accessories. They go through the continuous planning and monitoring of all their strategies that helps them in achieving their target.
External analysis (PESTLE ANALYSIS)
Political analysis: Government of the country need to develop some of the best economic policies which will have a great effect on the growth of business. Nike has been aided greatly by the US policies (Jeffs, 2008). Sometimes with the help of the changing political conditions companies can modernize their system as well as their products by low interest rates, the international competitiveness of the tax system as well as stable currency condition.
Economic analysis: An economic condition of the country highly affects the overall business conditions of Nike. At the time of economic recession there are always adverse effects on the advancements of Nike. US economies are facing huge downturn and due to this purchase power of consumers are also decreasing (Sekhar, 2009).
Society Analysis: People are getting health conscious day by day and due to this most of them are joining fitness clubs. It is highly increasing the demand of the Nike products like shoes etc. On the other hand, company is failed to address the problems like condition of labour and factory at different locations of the production in Asia. It has high negative impact on the Nike as well as its growth rate.
Technology analysis: Nike is effectively applying all their marketing and technology tactics and able to maintain their brand name as well as position in the market (Bose, 2008).
Legal Analysis: Nike is an American multinational enterprise and they always maintained their business ethics and given importance to remaining environment friendly.
Internal analysis (SWOT Analysis)
STRENGTHS
- Strong Brand image
- Robust position in sports wear industry
- Broad distribution network
- Most innovative shoe designs as well as latest and innovative products (Plant, 2005).
- Strong customer satisfaction
WEAKNESSES
- Outsourcing is the major weakness of company
- Medium retail presence
- High product price in comparison with Adidas
OPPORTUNITIES
- Expansion into various emerging markets
- Increasing demand of product innovation due to the significant growth in global footwear market
- Association with the NFL
THREATS
- One of the major threat is intense and increasing competition in the sportswear industry
- Economic recession
- Fluctuation in the country
Strategy formulation
Mission statement of Nike
“They want to become the largest seller of athletic footwear and athletic apparel in the world by attaining world’s leading position in sports and Fitness Company”
Vision statement of Nike
“To bring inspiration and innovation to every athlete in the world”
Value statement of Nike
The core philosophy of company is to run, inspire and challenge their employees on regular basis (Sadler, 2003). Nike wants to be the progressive company they can be and employs. Nike and their products give resultant of continuous call to creativity and innovation.
Nike has to publish all their corporate objectives on the basis of overall company (Hanrahan, 2010). Lacks of corporate objective represents a weakness. In order to better understand the direction of company as well as its objectives all their stakeholders must be aware about the company’s corporate objectives. They want to go through the appropriate implementation of program in order to meet out the corporate objectives of company.
Grand strategy: At the time of formulation of grand strategy Nike utilizes innovation to produce top quality athletic footwear and apparel (Crain and Abraham, 2008).
Competitive strategies: Online website is their competitive strength by which consumers can select the design of varied products. New product development is the top priority of the company through which they want to launch a never before seen element of fashion.
Strategy evaluation
After going through the whole market analysis i.e. internal as well as external analysis of Nike Company can easily evaluate their sales and profit trends (Lane, 2007). On the basis of above information collected it has been founded that Nike would like to uphold its position as the market leader in the athletic footwear market. For this, they have to provide its customer base with new and innovative products.
CONCLUSION
From the above research it has been founded that Nike has developed a positive brand identity in the mindset of all their customers. They can enhance their sales and profit margin by the way of appropriate formulation and evaluation of the strategies.
RECOMMENDATIONS
In order to grow their business and overcome with the upcoming threats and weaknesses Nike need to launch wide variety of products on the basis of their consumer’s needs and demands. They can brand their products on the basis of changing lifestyle of customers. They must develop their market development strategy targets on the basis of non-buying consumers. Market development strategy helps them in expanding their potential markets through users.
REFERENCES
- Bose, R., 2008. Competitive intelligence process and tools for intelligence analysis. Industrial Management & Data Systems. 108(4). pp.510 – 528.
- Crain, D. and Abraham, S., 2008. Using value-chain analysis to discover customers' strategic needs. Strategy & Leadership. 36(4). pp.29 – 39.
- Kaplan, R., 2005. How the balanced scorecard complements the McKinsey 7-S model. Strategy & Leadership. 33(3). pp.41 – 46.
- Lane, S., 2007. A new competitive analysis tool: the relative profitability and growth matrix. Strategy & Leadership. 35(2). pp.30 – 38.
- Jeffs, C., 2008. Strategic Management. SAGE.
- Plant, R., 2000. Ecommerce: Formulation of Strategy. Prentice Hall Professional.
- Sadler, P., 2003. Strategic Management. Kogan Page Publishers.
- Sekhar, G., 2009. Business Policy and Strategic Management. I. K. International Pvt Ltd.
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