BA (Honours) Business Studies
BA (Honours) Business Administration
BUSINESS STUDIES ASSIGNMENT
BST 3003
Professor: Martyn Shaw
Student name:
Student number: 627
January 2008
UNIVERSITY OF BOLTON
BOLTON BUSINESS SCHOOL
Business Studies Pathway
Module Name and number: Exploring Corporate Strategy
(BST3004)
Tutor: Martyn Shaw
Assignment Number: One Weighting: 50%
Assignment Title: Nike Strategy Fit
Assignment Length: 2500 Words
Issue Date: December 2007
Submission Deadline: 8
h
February 2008
I declare this submission to be my own work.
Signed (student name)……………………………………………….
Date…………………………………………………………………….
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I. INTRODUCTION
Following the Forbes 2000 public companies, we've taken the ten
countries and listed the top-ranking enterprise in each. Most of these global
giants have brand names can see around the world. Nike is among the multi
company with the largest seller of designs, develops and markets athletic, market
quality footwear, active sports, equipment and accessory product.

People’s lifestyles are changing towards their diet and health. As
predication , an increase in the number of people joining fitness clubs and a
massive growth for the demand of healthier sports shoes, and tastes with vary
with fashion, pricing and promotion strategies.
Technological Factors:
In the Word that new technology could provide a useful input, creating
new industries, featuring new print and television advertising
1.2 Industry Structures Analysis: (Nike’s Porter’s Five Forces
Analysis)
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The Five Forces affecting competition in an industry
(Adapted from M. E. Porter, Competitive Strategy, Free Press (1980), page 4)
Barriers to Entry: low
All companies had the competitor for customer, design, marketing, and prices.
Purchase prices for Nike’s products cheaper more than the different companies.
Customer’s loyalty products from others big companies Adidas-Salomon AG and
Reebok are very high.
Stronger companies have larger, more diverse distribution channels, which helps
them fend off the inevitable problems that strike industries from time to time the
name Nike inspires innovation and quality, an experience that consumers want to
be a part of.
.
Bargaining Power of Buyers and Suppliers:
Buyers in the footwear industry enjoy a largest contract of power. Nike
should continuously market their product and differentiate their brand competitor
in raise sales and market share. Nike had a website “nikeid.com” connect allows
consumers to customize and design the product when the customer need and
the choices to personalize the footwear with their name.
The power of buyers is very high, because they have many choices.
Consumer references in the market have a significant influence. By new

Taiwan, Thailand, and Turkey.

Nike brands name are inspired by mission, vision. The company strategic plan is
make the long-term vision and the brand strategy will help the company identify
why and how it will achieve those goals.
In addition, Nike outstanding performance in three primaries organizational
function that creates superior value for its customers thus creating competitive
advantage and competitive strategies
.
Nike’s core competencies had three identified financial, marketing and
advertising, research and development. Nike’s to maintain dominant position in
the athletic footwear industry. Furthermore, the company has the good
demonstrated the ability to manage and utilize these resources better than
another company. Nike has grown to be tremendous advantage for the company
when commerce with their competition, customers and moreover creating high
entry barriers for other company
2.2 Porter’s Value Chain Analysis:
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Primary Activities:
Inbound Logistics:
Most important value attrition in production with payable attentiveness of Nike
associated making services as well as on-going measures.
Operations:
The new inventiveness will be developing systems and processes disturbed with
identical the supply and demand of products. Estimated will be increasing profits,
margins and cash flows of Nike throughout decrease rejoinder time, allocation
costs and inventories.
Outbound Logistics:
The futures in both the US and overseas will demonstrate come back to a
successful model subsequent weak festival season, Olympics and difference with

licensees, and subsidiaries in 200 countries around the world.
3. Nike’s SWOT Analysis:
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Strengths:

Nike has one companies strong brand name and captured the largest
market share in the global foorwear and apparel industry.Nike has a healthy
dislike of is competitors such as Adidas, Puma…It can produce high quality
product at the lowest price. It use to outsourcing from Asia, Africa…because it
pay a little expense for labor.

Weaknesses:
Nike is the largest division and relies frailly heavily in the market. Nike’s
products are considered to be of higher quality and highest prices relative to our
competitors with other company and have a relationship with Footlocker. Nike are
placing emerging technology and innovation towards development of new
product.
Opportunities:
.
The currently strong economic will bring benifit in the athletic footwear
and apperal industrial. International profitability is growning up quickly as well as
the invesment marketing and operations in the US. Nike can also benefit from
benefit from taking advantage of its strong relationships with large quality-
focused retailers within Europe.
Threats:
Nike is the leader in the footwear and apparel industrial but its must
competitor with other company like that Adidas, Reebok. The launch of
technologically higher by Nike’s competitor with the new technology Nike Air in
2004.In March 2005, Adidas and Reebok has the products new technology
Adidas released Adidas 1 and Reebok pump 2 .0.

every body .Example Nike Air is obtaining people like using more compare with
another product for the different company. So on it is products relationship with
consumer.
Strategy fit:
Nike selection offers significant strategic fit, its benefits between many of its
sporting goods businesses. Purchasing economies and skills transport between
the apparel and footwear industrial (Nike Golf, Nike Pro, Nike +, Air Jordan, Team
Starter) container be readily achieved. Furthermore, strategic fit benefits are
possible in the product growth and production behavior of its apparel and
footwear. The brand building, sales, design and marketing activities of all
businesses are very similar and offer significant skills convey benefits across the
company in over the world.
The strategic choices “fit‘s” because opportunities in purchasing, product
development, or production between Nike apparel and footwear businesses and
its sports equipment products (tennis, golf, soccer, baseball, football, bicycling,
volleyball, wrestling, cheerleading, aquatic activities, hiking). In addition, there
seems to belittle opportunity to capture synergistic benefits between Nike
relationships Apple's iPod Nano called the Nike + iPod Sport Kit. The purchasing,
product design, and production activities for leisure and other athletic are likely
very dissimilar. Similarly, the customer service activities of these business groups
could ignore to retailer queries concerning equipment or apparel.
.
Product Life Cycle :
Product life cycle is minimize of Nike because every year Nike have product
more than 50,000 produce new in 2007, the environmental had contact of each
product during its life cycle from ultimate disposal, design and post consumers
use
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Testing Strategic Choices (Johnson & Scholes choice tests)
Nike is “fit” by using Johnson& Scholes choice tests

problem in relation to labor and factory in India, when the Nike’s use the plan
outsourcing. Nike should be careful when using the outsourcing in the different
country. Because of Nike must understand culture before investment open
outsourcing and open retail. Beside Nike have a good marketing and sales in the
highest compare the company competition. But Nike needs marketing and
advertising suitable with culture of every country Nike sales product.
The company is rethinking some of its long-standing agreements with retailers,
particularly during the retail industry's consolidation push in 2005. The company
will keep the strategy “fit” development brand name and on the competition.
When the Adidas acquired Reebok in 2006.the deal put the attached companies
in a position to compete with longstanding rival NIKE, which has been the summit
spot in the footwear markets international for decades. Nike will be high profit,
customer and strong brand name. In the next five year Nike should the top
number one in the athletic appral and footwear industry. Besides, Nike has to
develop technology in order to create fashionable, comfortable and good for
health products
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III. BIOLOGRAPHY
Clayton M. Christens and Michael E. Raymor (2003). The Innovator’s Solution:
Creating and Sustaining Successful Growth. Harvard Business School
Publishing.
Draft, R. (2007) Understanding the theory and design of organizations, Mason,
OH, Thomson South-Western
Michael E. Porter (1980), Competitive Strategy: Techniques for Analyzing
Industries and Competitors. New York: Free Press.
Michael E. Porter (1985). Competitive Advantage. New York: Free Press.
Michael E. Porter (November-December 1996). What Is Strategy? .Harvard
Business Review
Michael E. Porter (1998) .On Competition, Boston, MA, The Harvard Business
Review.

Retrieved November 25, 2007, from
/>Marketing Teacher Lesson Store, (n.d.). Theory of Porter’s Value Chain Analysis.
Retrieved November 25, 2007, from
/>Marketing Teacher Lesson Store, (n.d.). Theory of SWOT Analysis. Retrieved
November 25, 2007, from
/>Marketing Teacher Lesson Store, (n.d.). Theory of Core Competences. Retrieved
November 25, 2007, from
/>Marketing Teacher Lesson Store, (n.d.). Theory of Ansoff's Matrix. Retrieved
November 25, 2007, from
/>Global Vista, (n.d.). Nike on Global Economics. Retrieved November 30, 2007,
from />x=b11,0,w
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Organic Consumers Association, (n.d.). Nike Social Responsibility Rhetoric
Exposed as a Lie. Retrieved November 30, 2007, from
/>Strategic Analysis of Nike, Inc., (n.d.). Nike’s Strategic Analysis. Retrieved
December 12, 2007, from
/>The Manufacturing Practices of Nike and its competitors, (n.d.). The
Manufacturing Practices of the Footwear Industry: Nike vs. the Competition -
Steven Van Dusen. Retrieved December 20, 2007, from
/>Investors, (n.d). Nike Is A Growth Company. Retrieved December 14, 2007 from
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