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Nikes Strategic Management - Assignment Example

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This paper analyzes strategic positioning and market environment of Nike Incorporation with the help of strategic instruments in order to make the position of the company in sports equipment industry, understandable and clear…
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Nikes Strategic Management
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"Nikes Strategic Management"

Download file to see previous pages The intention of this study is Nike Incorporation as world leader in designing, developing and worldwide distribution and marketing of sports equipment, ranging from athletic footwear, athletic clothing lines, sports equipment and accessories. Nike’s main focus is on markets where the political environments are relatively stable and democracy flourishes. Nike’s main markets are considered to be USA, European Countries, developing countries of Asia, South Africa and few countries of North and South America. Usually, in these countries, the government has been elected through a general election. The economic conditions in these countries are relatively stable and favorable for businesses, despite of the economic slowdown experience in rest of the world. These political conditions provide a competitive advantage to Nike as it does not have to face the adverse effects of economic fluctuations and fluctuations in exchange rates. The policies regarding the interest rates and other monitory responsibilities are made keeping in view the requirements of the businesses, therefore; it becomes easier for Nike to utilize the disposable income in a more productive way. Although, the political scenario seems to b e favorable for Nike, but within governments, there are certain groups and lobbies that put pressure on authorities to ban the methodologies used by Nike for producing and marketing its products. Nike also needs to consider the subsidies it might get from the Government as it can be helpful for the company to setup its factories in these countries and import goods into the respective countries. ...
Economic Conditions In most of the countries, where Nike sells its products, economic conditions are either getting improved or they have already flourished or target customers’ purchasing power is improving on a regular basis. Especially in European countries and USA, Nike’s products are considered to be reliable and durable and purchased by customers on regular basis due to their ever increasing purchasing power and better economic conditions. Also, sports are considered to be an essential part of an individual’s life in these countries which helps Nike to sell more units of its products in a year as compare to the previous year (Petkova and Pattabiraman 2010). Social Being a USA based multinational company, Nike is widely accepted as a brand in USA and European countries, but at the same time, Nike faces criticism and neglected to be accepted by the society in some Asian and South and North American countries. For catering this strategic problem, Nike designs different products for every region of the world and markets the products according to the societal norms and values. These products are designed keeping in view the local customers’ buying behavior, their culture, the society in which they live and the attributes of sports equipment that these customers look for. Lifestyle also plays a pivotal role in Nike’s decision regarding designing a product. Majority of the markets that Nike caters, have a social background where sports events are paid especial attention, which implies that the purchasing of sports equipments is higher in these countries or markets (Mishra 2010). Technological Nike utilizes latest technology for manufacturing ...Download file to see next pagesRead More
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