The paper “ Nike - Environmental Audit, Competition, Organizational Structure and Culture, Functional Analysis, SWOT Analysis, and Distinctive Competencies” is a meaty example of a report on marketing. Companies are fast shifting focus to the international business environment in the wake of continuing globalization. The results of such moves are notable in increased market existence and subsequently amplified profitability. It should be noted that prior to effecting internationalization strategies, management must come up with an effective evaluation of the markets and overall environment that a company seeks to engage in.
This analysis should inform the company about the potential risks and advantages that the company stands to gain from the venture. Internationalization strategies vary from company to company. For instance, a company may opt to seek a different strategy after an in-depth analysis of the target market and the type the business or the line of products the company deals in. However, there are three most common strategies that a company seeking to venture into a new market employs. Kirstein (2007, pp6) writes that companies can adopt an acquisition strategy while venturing into new markets.
Nike like many international companies has the potential to expand its operations to increase its brand dominance and sustain profitability. Nike is a United States-based company that develops and supplies sportswear as well as apparel worldwide. Founded in 1962, the company has one of the comprehensively perceived management systems that have made it have an established and maintained a competitive advantage over the decades. The company had an initial primary goal of distributing low-cost Japanese high-quality athletics shoes to American customers. However, the company has grown to be one of the best and dominant companies in the world that produces, distributes, and manufactures shoes at a consumer-friendly price point to a global market.
It is worth noting that the company employs a vibrant mission in developing its innovation and evolution in order to stay on top of the market. A carefully planned partnership between Nike and its’ producers ensures that the company has an absolute cost advantage in the manufacture of its products especially the footwear that is entirely produced outside the founding country that is the USA. According to Schmitz (2005), Nike operates in over 160 countries in the world and employs over one million people from both direct and indirect perspectives.
According to Carbasho (2010), Nike has a great zeal of promoting innovation and product improvements as stated in their missions and visions. In this way, the company has been at the forefront in creating business opportunities for itself thereby setting it apart from its competitors. Notably, the basic understandings of success in a company are directly attached to its internal function ability. This paper seeks to analyze the internal functions, through a comprehensive analysis of its value chain, organizational structure, culture, and VIRO analysis of Nike Company.
The paper will also discuss some of Nike’ s key distinctive competences that make the company have some of its professed competitive edge within the sporting industry. Mission statement and visionNikes' mission from the founders’ point of view is to provide every individual who wants to participate in a sports activity with inspiration through innovation in the equipment and products that they produce. Generally, Nike considers every person as a potential sportsman and therefore they envision a society where their products are the epicenter of all sporting activities.
While innovation remains the core of Nike’ s principles, it has also developed paradigms that will help all the managers at all levels its’ goals and objectives. These include the managers’ power to lead and inspire their teams and coaching them to drive the company forward. Like many recognized international brands, Nike’ s major priority is the satisfaction of its customers through evolution and innovation to cope up with the current market trends.
This vision of looking at each person as a potential sportsman sets Nike apart in its marketing strategy. It ensures that Nike capitalizes on creating a broader market not only within the sporting community but further beyond; a market without boundaries.
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