Competitive Position and Corporate Social Responsibility of Nike - Case Study Example

The paper "Competitive Position and Corporate Social Responsibility Study of Nike" is a wonderful example of a case study on management. The corporate social responsibility of Nike as a business strategic tool for a strong market presence and brand image development is a global example. The responsibilities of the business focus upon the creation of global processes for sustainability development and improve upon its present market value. The competitive structure of Nike with its innovation and global presence has given it an advantage that has given it 31% of the global sportswear industry share (Marketwatch.com, 2014).

Further, the employee-to-employee connection structures of Nike along with its local consumer need focus for each specific market have increased its competence both in price and innovation competence (Refer Appendix). Nike has associated its stakeholder’s expectations with its business processes to ensure the performance of its social responsibilities as part of its business operation model. However, a critical analysis of the CSR activities performed by Nike in its global business operations is done to evaluate the mechanisms and contribution it has made to create positive changes to the stakeholders and meet the social expectations. 1.1.

Background of Nike Established in 1964, from 1971 the brand Nike appeared for the first time, headquartered in Washington County, Oregon USA. Financially the brand had been doing well internationally with revenue earning of 25.3 Billion USD in 2013 and operating income of 3.040 Billion USD in 2012 and a net income of 2.223 Billion USD in 2012. Today the firm can boast about asset strength of 15.5 Billion USD and equity of 10.381 Billion USD with staff strength of 44,000 in 2012 globally (NIKE, Inc., 2014). Nike is the clear market leader, with 31% of the global athletic footwear market in 2007.

Nikes market share in Asia Pacific regions hovers around 36%, followed by Adidas at 20%, with Puma and New Balance as distant third and fourth. The global market for athletic footwear is concentrated, with the top four firms controlling 71%. By contrast, the market for athletic apparel is both larger ($49.5 billion in 2005) and more diffuse; the top five firms control only 27% of the market. Nike is, however, also the global leader in apparel, with a 7% market share in 2007 (Statista, 2011).