The paper “ Nike’ s Strategic Management, Corporation Revenue Centers, External Environment Analysis, and Source of Sustainable Competitive Advantage ” is a meaty example of a case study on the management. Strategic Management is a key study area for business students and especially for those who intend to pursue it as a career or venture into entrepreneurship. There are many corporations that have several units of business with regard to products or services provided. This paper projects on Nike as a transnational lucrative company in the fashion industry. Corporate research which seeks to identify its business units and product lines precede the corporate research.
Thorough research is presented not only on the Corporation’ s revenue centers but also on its external environment and competitiveness. Corporation IdentificationNike is a multinational corporation in America that is engaged in the development, design, worldwide marketing, and manufacturing of apparel, footwear, accessories, equipment, and services. The corporation owns many other companies which include Hurley International, Converse, Cole Haan, Umbro, and others. The company has several brand names used for marketing such as Nike+, Nike Blazers, Air Max, Air Jordan, and Air Force.
In summary, the company is owned by several instructions, the number of the holder of the company is more than 1430. This report will discuss corporation identification basing its argument on Nike Company. What is a corporation? Scholars have defined it as a firm or an organization that meets legal requirements for the purpose of being recognized as a company that has legal existence. The firm has an entity distinct and separate from its owners. A corporation is owned by shareholders, who share losses and profits of the firm (Hiller 2013, p. 299).
Nike Company was officially started and owned by Phil knight and Bill Bowerman; however, the corporation is currently owned by shareholders such as Vanguard Group Inc. , State Street Corporation and many others. The product portfolio comprises of all merchandises that are manufactured and owned by an organization. They range from product lines and individual products (MacMillan et al. 1982, p. 750). Nike Company has several product portfolios such as kids' wear, sportswear, fashion clothes and shoes, equipment, apparel, stores, and accessories. Scholar defines service portfolio as an essential repository for all services and al information in a company.
The portfolio lists the current situation of each service and also the service design package. Service portfolio consists of underdeveloped services (service pipeline), active services links (service catalog) and lastly discontinued services (retired services). Corporate ResearchA business unit is a segment or an element of a firm such as marketing, manufacturing, and accounting that is concerned with certain business functions (Gupta & Govindarajan 1984, p. 30). Nike Company has business units such as standalone, a category for outdoor and conditioning products.
Manufacturing and distribution are other categories in the corporation. Products such as footwear are manufactured outside by independent contractors in countries like Indonesia, China and Vietnam. The company uses an outsourcing strategy to reduce production costs. Nike has invested heavily in marketing business units. The company uses sports sponsorships and athletes’ endorsements to build its brands across the globe. Product lines are defined by scholars as a group of products produced by the same company under a single brand. Product lines are created as a strategy for marketing (Best, 2012). Nike product lines include sports equipment like basketball, baseball sportswear; football sports shoes, sports apparel, and street shoes such as Air force shoes, Air Jordan and Air max.
Other product lines are street clothes, Elite socks, MP3 players and caps. Service lines are a group of facilities or provision that a company offers to its customers. E-commerce, digital sports workout subscriptions are the lines of services offered by Nike.