Strategic Issues of Nike

Paper Summary:

In this article, the writer notes that in the past few years, competition among companies that manufacture and sell athletic apparel and athletic shoes has dramatically increased. The writer points out that, as a result, a company's competitive strategies have emerged as key factors in determining the long-term success or ultimate failure of such organizations. The writer explains that an analysis of Nike's strategic issues and recommendations provides a clearer picture of what types of competitive strategies are essential for any company to survive in today's highly-competitive economy. This paper critically examines the current competitive strategies of Nike and compares these actual competitive advantages to what is required for success. It concludes by analyzing the company's abundant environmental opportunities and significant internal strengths.

Outline:
Introduction
Competitive Strategies of Nike
Ideal Strategies vs Nike's Strategies

From the Paper:

"Nike has been a long-time competitor in the athletic apparel and shoe industry, and faces competition from shoe manufacturers worldwide. Over the years, the demand for different athletic shoes based on age, maturity and cultural standards changed, and Nike has been able to adapt to fit the consumer demands. For example, in the U.S., Nike's Air Jordan basketball shoes were considered for their performance characteristics, their association with a popular U.S. sport, and the endorsement from the pre-eminent star of that sport. However, in Europe, although awareness of basketball exists, the identification and technical aspects of the shoe are lost. As a result, the Air Jordan shoe, as well as other shoes associated with or promoted by popular American athletes, became popular in Europe because overseas Europeans desire products with a Western culture association and like fashion with trend associations. Since other athletic shoe companies are designing performance athletic shoes with a fashion twist, Nike has to deal with these new competitors."

Sample of Sources Used:

• Dusen, S. (2006). The Manufacturing Process of the Footwear Industry: Nike vs. the Competition. Retrieved April 26, 2007, from http://www.unc.edu/andrewsr/ints092/vandu.html.
• Kimerling, L. & Sood, S. (1998). Nike: Building a Global Brand. Prentice-Hall Inc.
• Jaquier, B. (2003). Cost-Leadership Strategy. Retrieved April 26, 2007, from http://www.ecofine.com/strategy/Cost%20leadership.htm.

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