Strategic management is the most important processes which involve appropriate formulation as well as implementation of different strategies to achieve better performance. The present study is based on the Nike’s strategic management. Nike is a manufacturer but in reality it is just a marketing company. The whole strategic management plan with appropriate formulation and evaluation is going to be developed in this study. Nike has been aided greatly by the US policies. Nike is effectively applying all their marketing and technology tactics and able to maintain their brand name as well as position in the market. The major strength of company is its positive brand image whether the threat is intense market competition. They want to go through the appropriate implementation of program in order to meet out the corporate objectives of company. For this, Nike utilizes innovation to produce top quality athletic footwear and apparel. They would like to uphold its position as the market leader in the athletic footwear market.
In today’s globalized world one of the most important tasks for different organizations is to develop various strategies in order to attain higher competitive advantage. It is one of the most important processes which involve appropriate formulation as well as implementation of different strategies to achieve better performance. The present study is based on the Nike’s strategic management (Kaplan, 2005). It is an American multinational brand that is engaged in designing as well as manufacturing of footwear, apparel and accessories. They go through the continuous planning and monitoring of all their strategies that helps them in achieving their target.
External analysis (PESTLE ANALYSIS)
Political analysis: Government of the country need to develop some of the best economic policies which will have a great effect on the growth of business. Nike has been aided greatly by the US policies (Jeffs, 2008). Sometimes with the help of the changing political conditions companies can modernize their system as well as their products by low interest rates, the international competitiveness of the tax system as well as stable currency condition.
Economic analysis: An economic condition of the country highly affects the overall business conditions of Nike. At the time of economic recession there are always adverse effects on the advancements of Nike. US economies are facing huge downturn and due to this purchase power of consumers are also decreasing (Sekhar, 2009).
Society Analysis: People are getting health conscious day by day and due to this most of them are joining fitness clubs. It is highly increasing the demand of the Nike products like shoes etc. On the other hand, company is failed to address the problems like condition of labour and factory at different locations of the production in Asia. It has high negative impact on the Nike as well as its growth rate.
Technology analysis: Nike is effectively applying all their marketing and technology tactics and able to maintain their brand name as well as position in the market (Bose, 2008).
Legal Analysis: Nike is an American multinational enterprise and they always maintained their business ethics and given importance to remaining environment friendly.
Internal analysis (SWOT Analysis)
- Strong Brand image
- Robust position in sports wear industry
- Broad distribution network
- Most innovative shoe designs as well as latest and innovative products (Plant, 2005).
- Strong customer satisfaction
- Outsourcing is the major weakness of company
- Medium retail presence
- High product price in comparison with Adidas
- Expansion into various emerging markets
- Increasing demand of product innovation due to the significant growth in global footwear market
- Association with the NFL
- One of the major threat is intense and increasing competition in the sportswear industry
- Economic recession
- Fluctuation in the country