Nike, Inc. Strategic Case Study

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Table of Contents

Executive Summary4
1. Introduction5
2. Strategic analysis6
2.1 External analysis6
2.1.1 PESTEL analysis6
2.1.2 Porter’s Five 5 Forces and Government model analysis8
2.1.3 Turbulence Model9
2.2 Internal Analysis9
3. Strategic directions and strategic objectives10
3.1 Mission10
3.2 Strategic objective11
3.2.1 The financial objective of Nike11
3.2.2 The non-financial objective of Nike11
4. Key broad business-level and international strategies12
4.1 Ansoff’s product and market business level strategies12
4.2 Miles and Snow’s adaptive strategies13
4.3 Porter’s competitive business level strategies14
4.4 International strategies15
5. Strategic implementation: General perspective17
5.1 Environment Turbulence17
5.2 BCG Matrix17
6. Key strategic implementation issues19
6.1 Outsourcing issue19
6.2 Sweat factory19
6.3 Labor shortage19
7. Strategic evaluation20
7.1Financial.20
7.2 Employee21
7.3 Customer21
7.4 Environment21
8. Conclusions and Recommendations23
9. Reference List24
10. Appendix 1 Stakeholder theory tables of Nike28
11. Appendix 2 Business ethics four broad levels of ethical stance of Nike………..29
12. Appendix 3 Triple bottom line of Nike………………………………………….29
13. Appendix 4 SWOT Analysis of Nike……………………………………………30

Executive summary
Nike, Inc. is a leading organization in the sportswear industry. It has successfully outsourcing its manufactures in the low cost countries all over the world. This report has analysed Nike’s strategies and identified the major issues which influenced its strategies’ implementation. The report begins with Nike’s strategic analysis which included external factors and internal factors. Then, the report has discussed Nike’s mission and its strategic objectives, which included financial objective and non-financial objectives. Moreover, Ansoff’s Metrics, Miles & Snow’s adaptive strategies and Porter’s competitive business level strategies has been applied to discuss Nike’s business level strategies. Meanwhile, the report has examined Nike’s corporate level strategies as well. Furthermore, the report has identified the general problems and the key issues during Nike’s strategic implementation. Additionally, the report has evaluated Nike’s overall strategies implementation. There are two general issues that influenced Nike’s implementation, which are the environment turbulence and the bad investment. Meanwhile, there also has the outsourcing, sweat factory and labor shortage issues which hindered Nike’s strategic implementation. The recommendations for solving the issues were made as firstly to consolidate the distribution, make it less scattering and assign the regional delegates to monitor the process; secondly, to plan to move its factories to the countries or places with more young labor forces and relatively low labor costs.

1. Introduction
Established in 1972, Nike is now the leading brand in sportswear industry. Its origin was Blue Ribbon Sports initiated in 1964. Nike was started as a sports shoe company, but it is now making a variety of products. Nike is not only the leading company in the US, but also has a big share in sport markets in Europe and Asia.

As a major player of the highly competitive sport market, Nike has many competitors which including Adidas, Reebok, New Balance and Puma etc., yet it is able to keep its position in the market. To stay competitive, Nike has adopted a series of different strategies, including labor outsourcing, knowledge share network, regional marketing schemes, and the adjustments on organizational structure.

In this report, the strategies and objectives of Nike will be examined and discussed with the support of relevant frameworks and theories. The strategies and their implementations will also be evaluated and relevant issues will be identified....
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