Now mothers and fathers will receive an additional eight weeks paid time off and employees who need to care for family members also receive eight weeks paid time off. In fact, by the first decade of the 21 st century, Nike had already established retail outlets and distribution channels in over 170 countries Britannica. If these charges had not been incurred, income would have been flat for both years. I will let you know what the teacher think. Under Armour is just starting to expand. The Nike name and associated trademarks have appeared everywhere from players' shirts, pants, and hats to stadium banners and walls.
He is not hesitant to make unilateral decisions, but prefers to look to his trusted management team for their insight and ideas before choosing a course of action. This cutthroat environment has hindered the entry of new competitors. A year later with 2,700 employees, Nike went public selling 2 million shares on the New York Stock Exchange. It is planned to be opened later in 1999. Also, it is proof that all businesses share product, technological, and distribution linkages. This image is something that competing companies can not easily duplicate by simply enhancing the physical characteristics of their products.
The business level industries of the companies work mainly in two forms, competitive strategies and corporate strategies. Since then, Nike has been striving towards an inner culture that reflects this mantra. Research and Development Focus - Strength Although Nike conducts continuous, basic research that benefits numerous facets of the sports and fitness industry, our primary focus is directed towards applied research. For example, Nike increases its stores and retailers in the United States to sell more athletic shoes to American consumers. The remaining competitors, including Fila, Timberland, Asics, Converse, and New Balance, among others, each hold approximately 3-5% of the remaining market share.
Also, Nike had sights set on increasing business into areas of extreme sports e. We have just recently changed our collection period from 90 days to 60 days as an attempt to encourage faster payment. As Nike continues to expand in the global economy and increase its market throughout the world, these dispersed facilities will prove to be beneficial. Strategic Analysis of Nike, Inc Strategic Analysis of Nike, Inc. The company also sponsors various sports events at national and international levels.
Since then, the company has been successful, dominating the world market of athletic shoes. Corporate office schedules are standardized, while supply chain schedules are adjusted according to the conditions of the market. The current ratio, while not a major strength, shows that Nike is inline with the industry concerning ease of converting assets to cash to cover short-term obligations. We have not catered to a large portion of the new generation that demand the latest trends and styles. A swot analysis goes hand in hand with this.
During 1999, the company made some changes in its products and deeply cut costs. Under Armour has established a solid position in the United States and Europe is a big opportunity to continue expanding. We will continue to produce the quality products that we have provided in the past. Nike had four steps to product innovation, development, design…. As a result, he has much knowledge and experience about the company and the industries in which it competes. These areas pertain to the main decisions in managing streamlined operations and productivity that effectively address business goals and objectives.
Top management consists of a committed group of executives all bringing together vast experience and knowledge. Cost Cutting- Nike has cut approximately 350 million in operating expenses in the last 2 years. The corporate level strategy helps decide which business areas to operate in and which markets to enter remain or quit. Nike is continuously making efforts to ensure that all employees and members of its surrounding communities are treated in a manner that is inline with our mission. The program represents the first time a company has offered mass customization of footwear.
During that same period, net income declined 17%. Social Responsibility - Strength In response to accusations by consumer groups over unfair labor practices, Nike has developed a Corporate Responsibility Policy that discusses how we will improve working conditions for our international employees. With the industry that they are in they almost are forced to focus on innovation in order to keep up with the competition and customer demands. Although these facility are 3rd parties and… 2172 Words 9 Pages Nike was founded in 1964 as Blue Ribbon Sports by University of Oregon track athlete Philip Knight and his coach Bill Bowerman, and officially became Nike, Inc. Each company is trying to stay one step ahead of the other and hopefully gain more market share int he process. Concentric Diversification: This is also called related diversification. Nike produces a wide range of sports equipments such as running shoes, sportswear, football, basketball, tennis, golf, etc.
Nike will also focus on making a strong effort in price leadership. Nike has capitalized on the recent economic boom with higher sales and income. For these reasons, we chose finance as our major problem. When some leading companies follow their specific business-level strategy, then it causes changes in the nature of the competition level in that particular industry. They have also laid off 1900 workers.