Nike Strategic Analysis

Paper Summary:

This paper discusses Nike's increasing reliance on branding, marketing, in-channel synchronization, execution and stabilizing of their supply chains. It analyze the implications for Nike's strategy based on the use of two strategic planning concepts - the Ansoff Matrix and the Boston Consulting Groups' Growth/Share matrix strategic market planning frameworks.

Table of Contents:
Executive Summary
Ansoff Matrix as a Strategic Planning Tool
Analyzing Nike Makes Ansoff Matrix Limitations Clear
Applying the BCG Growth/Share Matrix to Nike
Nike's BCG Matrix

From the Paper:

"Market penetration strategy - The strategies in this quadrant collectively define series market strategies based on the company's existing products where no product modifications are made. In the case of Nike, this quadrant represents their heavy investments in branding to maintain a high level of unaided awareness and product loyalty in their existing customer base, the continual fine-tuning of their supply chain which has in the past impacted their ability to fulfill customer demand globally, and the continued retail-driven sales strategy which includes financial and product incentives to maintain shelf-space in all major retailers. A market penetration strategy specifically focuses on retaining existing customers and making them more brand-loyal."

Sample of Sources Used:

• Ansoff, HI (1957). Strategies for Diversification. Harvard Business Review. September - October. 113 - 124.
• Wheelwright, Steven C. and Kim B. Clark. Revolutionizing Product Development: Quantum Leaps in Speed, Efficiency and Quality. New York: Free Press, 1992.
• Nike SEC Filings (2007) - SEC filings completed by the company. Accessed from the Internet on April 7, 2007: http://invest.nike.com/edgar.cfm
• Nike Annual Reports (2007) - A 9 year history of the company's annual reports. Accessed from the Internet on April 7, 2007: http://www.nike.com/nikebiz/nikebiz.jhtml?page=18&item=annualreport
• Porter, Michael E. The Competitive Advantage of Nations. New York: The Free Press, 1990.

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