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Global strategic management : Nike - Case Study Example

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Global Strategic Management Case: Nike Date Global Strategic Management Case: Nike Question 1 Company Analysis The analysis of this company has been done in this paper in pursuit of three views; industry based view, resource based view and institutional based views, which will be analyzed using Porter’s industry based view, RBV and PEST…
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Global strategic management case: Nike
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"Global strategic management : Nike"

Download file to see previous pages With regard to the threat given by new products, Nike has made sure that they do their marketing with celebrities and prominent personalities that the information about Nike remains for a long time without fading away (Hill, Charles and Jones 2012). A perfect example is the case of Michael Jordan who was associated with Nike long time ago but after retirement sale of Nike because of him is still strongly experienced. As to the bargaining power of the customers, Nike has ensured that they make quality products compared to those of the competitors and this has made the customers to overlook the prices of the commodity. Resource Based View Considering this view, Nike Company has used it potential in this case to cut themselves a niche in the market by opening numerous retail store outlets around the world, with US alone having over 23,000 outlets. Through this strategy, the company has been able to expand its market base than most of its competitors, and this has enabled them to reach out more customers explaining their robust profit. Political, Economic, Social and Technological Analysis With regard to this view, Nike has explored various ways of exploring this option to curve themselves an advantage. In the social aspect, they have used the prominent personalities in the world to market their products, which has really worked well for them in terms of making indelible impact to the esteem customers, and this has contributed immensely to their profit margin (Katsioloudes, Marios, and Hadjidakis 2007). Question 2 Significance of Analysis In business there is endless competition within and outside the business, in this regard businesses need to know their strengths and weaknesses within a period so that they can adjust appropriately to the unsuspected dynamics presented by the business environment. These analyses enable the business or a company to identify areas that needs to be emphasized and that needs to be discarded owing to their obsolete nature. An example is in the porter five forces analysis, within this analysis; a business is able to get first-hand information regarding the kind of competition that the market presents (Katsioloudes, Marios, and Hadjidakis 2007). In this case, they will be able to device strategies of dealing with the situation to maintain their rightful position in the market. Through the analysis also, the business can know the kind of new products that has entered in to the market competition as well as the political and economic factors that might be detrimental to their forecast. In this case, the company will be operating from the position of knowledge in dealing with issues that threatens their projections (Keller, 2006). Business analysis in this context proves to be an important factor for businesses to SWOT themselves so that they can have a holistic approach to myriad challenges that they face in terms of maintaining a market share for themselves and positively being into the business. Question 3 How Have Nike Built Capabilities Over Time? In business building the kind of capability that Nike has demonstrated over a period of time is not simple. A business has to have forecast based on a workable plan of action in the strategies that are not explored by the main competitors. Nike seized this opportunity and curved themselves a niche by using ...Download file to see next pagesRead More
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