AbstractNike has been voted among the top five most recognized brands globally for the last five years. Such success has not been achieved by coincidence but the sheer dedication of the management by utilizing resources at their disposal and strategic business management knowledge. Embracing changes in technology, changes in consumer taste, globalization among other developments in the market have not prevented the company from posting impressive financial reports. As of 2008, the company recorded revenues of $4.6 billion for its 2009 second quarter registering a 6% growth year on year on despite the hard hitting global recession (Nike).
Business analysts have used the company as a benchmark for marketers most notably through the “Just Do It” campaign that commenced in 1980’s. Table of Contents1.0 Introduction 1.1 Background of the Organization 2.0 Environmental Analysis 2.1 Pestle analysis Economic SocialTechnologicalDemographic2.2 Five forces analysis Supplier powerBuyers’ bargaining power Threats of new entrantsSubstitutesCompetitive Rivalry 3.0 Organisational analysis 4.0 Current strategy 5. 0Gap analysis6.0 Conclusion and Recommendations ReferencesAppendices1.0 Introduction The modern business environment is dynamic and characterized by limited time periods, niche opportunities and presence of ever increasing risks.
This requires precise decision making following insightful market analysis and competent strategies to achieve set organizational objectives. Globalisation has seen high octane ventures metamorphosing constantly into global empires. Therefore, responsibility imposed to senior management is huge in terms of individual strategic management. This paper thus is a strategic analysis of the management style at Nike Inc specifically within the last five years (Nike, 2009). 1.1 Background of the Organization The company was founded in 1962 by Phil knight and Bill Bowerman as joint partnership operating as Blue Ribbon Sports.
They had set objective of distributing high quality, low-cost Japanese athletic footwear for consumers in America, dominated then by Germany. Nike expanded into variety of sports apparel, by 1990, consolidating its revenue surpassing $2 billion mark and with over 5,300 workers across the globe (Enderle, Micka, Saving, Shah, & Szerwinski, 2000). In 2000, Nike Inc. became a global market leader in distribution and manufacturing of sports footwear with elaborate distribution channels incorporating both modern and traditional distribution channels spread to over 160 countries (Nike Inc. , 2008, Schultz, 2007).
Growth was mainly attributed to improved shoe technology and better marketing campaigns. Endorsements by celebrities in the likes of Michael Jordan, Will Smith, Lance Armstrong, Tiger woods, and professional women basketballers (WNBA) further extended Nike’s global brand positioning (Enderle et al, 2000). 2.0 Environmental Analysis Pestel analysis Political For example, under the Bill Clinton regime, trade embargo was place on Vietnam in 1993, this resulted to corporations donating to the Democratic National Committee in order to lift the embargo, presence of Nike’s name on that list led to unfavourable image especially when the embargo was lifted against the POW/MIAs families.
In addition Nike facilities in Vietnam experienced what is called “sweatshop” which negatively spoiled Nike’s image. Following the events September 11, combined with policies of Bush administration, created another challenge on brand loyalty especially in Asian markets (Enderle et al, 2000). Economic Nike Inc. has a strong research and development agenda in their management. This enables the company to promptly adapt to new trends in the market and at the same time incorporate technologic advancement in the process. This improves products quality and lowers costs of operations.
Timely evaluation of internal structures and processes has ensured stability at the company (Enderle et al, 2000).