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NIKE CASE STUDY1Nike Case StudyMonique BradshawBUSN 470 Strategic ManagementRegent UniversityDavid Cullipher May 05,2019
NIKE CASE STUDY 2Nike Case StudyIntroductionNike is an American multinational that engages in design, manufacturing, and development of footwear, accessories, equipment, and apparel. As evident in the case study, Nikestarted in 1963 under the name Blue Ribbon Sports before becoming Nike in 1972. Nike had secured 50% of the US running shoe market before it went public in 1980. The company is the world’s leading shoemaker and dominates about twenty percent of the athletic shoe market in theUS. Nike’s position in the market can be understood through an analysis of the industry, market, strategies, SWOT and strategic alternatives. Industry and market analysis Based on the case study, it is evident that Nike operates in the footwear manufacturing industry. Although the industry has been growing in the last half a century, its leading players have become well-established to reduce rivalry. Companies such as Reebok, Fila, Puma, and Adidas have protected themselves from the competition by developing strategies to make them dominant players (Ali et al., 2017). The move has enabled the companies to maintain profitability and reduce threats of new entrants thus taking the industry to the maturity stage of its lifecycle. Although the shoe manufacturing industry has been competitive, some firms have exited the stage. For instance, Converse sold itsstakes to Nike and exited the industry. Also, Adidas acquired Reebok after the later failed in some markets (Ali et al., 2017). These findings suggest that Nike and Adidas have succeeded in the industry. The firms that thrive in the industry embrace innovation, pricing strategies and customer satisfaction as the critical success factors.
NIKE CASE STUDY 3Players in the footwear industry should respond to legal and political issues. For instance,companies such as Nike have significant exposure to regulations governing international trade. Changes in trade and tax policies in the world affect the operations of the firms in the industry (Facts, 2009). Also, diplomatic tensions such as the ones between the US and North Korea pose athreat to the operations of the firms in the industry.
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