Strategic Plan For Nike Inc: Strengths And Weaknesses (Coursework Sample)
A strategic management plan addresses four different management functions: environmental scanning, strategy formulation, strategy implementation, evaluation, and control. The purpose of the Week 3 individual assignment is to evaluate the internal and external environments of NIKE, to analyze the competitive advantage of NIKE, to evaluate a set of suitable strategies, and to examine appropriate metrics.
Research a selected company (NIKE) as if they were involved in a company's actual strategic management planning process. It allows students to see which management planning process and management plan the selected company is currently using, allowing them to measure the effectiveness of current strategies.
A Strategic Management Plan addresses four different management functions: Environmental Scanning, Strategy Formulation, Strategy Implementation, Evaluation, and Control.
Write a 1,050-word report in which you select a company you are familiar with (Nike) or a company where you currently work, and do the following:
Evaluate the internal and external environments of your selected company using an environmental scan.
Analyze the competitive advantage of Nike.
Evaluate the strategies Nike uses to create value and gain competitive advantage.
Examine the measurement guidelines NIKE uses to verify its strategic effectiveness.
Evaluate the effectiveness of the measurement guidelines NIKE uses.
STRATEGIC PLAN FOR NIKE INC.
Evaluate the internal and external environments of your selected company.
Nike's Internal Strengths
Nike's first notable internal strength is its strong global brand image (Research and markets, 2012). Through its effective marketing strategy, the company managed to elevate Nike into a strong global brand. Secondly, the company has a rapid innovation strategy which supports continuous innovation and development of new innovative products (NIKE Inc, 2014). The innovative strategy helps the company top constantly launch cutting edge product designs in its three core product lines: apparel, equipment and footwear. Thirdly, Nike boasts a widespread global supply chain and efficient productionprocesses which enables the company maintain its global leadership position (Research and markets, 2012).Through a strong brand, rapid innovation and an extensive global supply and production network, Nike enjoys a competitive edge in the apparel and footwear industry. Nike's other strengths include a large global market share, electronic product distribution network, superior advertising and product promotion and high quality products.
Nike's Internal weaknesses
Still, Nike has internal weakness that impede on growth and performance. These factors include labor disputes particularly in developing nations where the company sources its raw materials (NIKE, Inc, 2016). Labor disputes have adversely impact on the company's global brand. Secondly, the company has limited product lines despite its recent efforts to expand its product mix (Research and markets, 2012). Thirdly, Nike faces stiff competition in developing markets where it faces challenges ranging from pricing, counterfeiting to copyright infringement issues (Research and markets, 2011). As a result, Nike needs to review its strategies especially in labor and further expand its product lines to effectively serve developing markets.
Opportunities- External Factor
The external strategic factors (opportunities) that Nike can exploit to gain a competitive advantage includes improvement of its labor practices particularly in developing markets and further expand its product mix (Research and markets, 2012). Besides, the company can improve its presence in developing markets to improve sales.
The first external threat is fierce global competition from other established brands such as Adidas (Research and markets, 2011). Moreover, Nike is threatened by rapid technological transformation which directly affects its innovation strategy. Thirdly, widespread counterfeiting and copyright infringement issues in developing nations remains a formidable challenge for the sports apparel giant (Research and markets, 2012).
Analyze the competitive advantage of Nike.
Branding is Nike's first competitive advantage as the company has progressively used its effective marketing strategy and innovative products to establish a strong corporate brand (Nike vs. Adidas, 2018). As a result, the company's brand name is regarded as premium based on its product pricing and quality. Nike is a widely recognized global brand. Secondly, the company provides product customization thereby meeting the specific needs of its customers (Research and markets, 2012). This provides customers with superior experience, connectedness with the company and long term relationship with the company. The third area of competitive advantage is a strong research and development department (NIKE, Inc, 2014). This has helped the company to constantly launch innovative products that has helped differentiate the company from the competition. Still, this has helped Nike to e...
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