Elements of Nikes Business Model and Strategies Nike has a strong business

Elements of nikes business model and strategies nike

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Elements of Nike’s Business Model and Strategies Nike has a strong business model design which has seen it maintain its leadership position in an increasingly competitive market. Its business model emphasizes on major activities such as development and marketing, design, building a strong international brand and outsourcing of its non-core processes which include manufacturing activities to contract manufactures. According to Deutsche (2009), Nike’s design, research and development has enabled it maintain its leadership position for the past three decades. In the year 2014 alone, Nike filed for 541 patents. It filed 70 technology patents, 281 shoes patents and 39 patents for manufacturing (Deutsche, 2009). Some of its most recognized innovative products include NIKE Air, Zoom, Lunar, Free, Fly wire, Fly weave and NIKE+ among many others. Furthermore, Nike has formed partnerships with global top organizations in innovative technologies. For instance, the partnership that Nike has with Dye Coo has enabled the company to advance a waterless textile dyeing. Bluesign has also offered Nike with information on better sustainable chemistries and materials. Further, Coca-Cola Company, H.J. Hein Company and PET Technology Collaboration (PTC) Plant and other companies have also helped NIKE work on increasing the development and usage of 100% PET fiber and materials (Plunkett, 2016). Because of these partnerships, Nike has been able to build a sustainable business. NIKE has greatly focused on contract manufacturing. The company does not have any manufacturing site of its own and produces all of its products through various contractors. According to Plunkett (2016), all of NIKE’s footwear and apparel products are produced outside
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Sneaker Wars the US. Contract manufacturing strategy has enabled NIKE to increase its profit margins, limit on stock, reduce price markdowns and make sure that its esteemed customers receive the best product assortment promptly. Today NIKE is the world’s leading sports brand with its value approximated at $15 billion for 2012, $ 17.4 billion in 2013 and $ 19 billion in the year 2014 (Plunkett, 2016). It has built its global brand over the past three decades by having sponsorship agreements with professional teams, great athletes and athletic teams in various colleges.
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  • Winter '15
  • Athletic shoe, Nike, Inc., Reebok

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