Strategic Fit

 
Executive Summary
Founded in the early 1960’s, Nike formerly known as Blue Ribbon Sport grew into one of the world’s most recognised brand. A leader in the field of sport clothing and footwear, Nike has always been one that encouraged innovation, creativity and growth. Outsourcing of its manufacturing processes, created an opportunity for Nike to realign itself and focus on its core competencies, doing what they do best research, development and advertise.
By mid 1990’s the company began fighting attacks on its manufacturing practices in Asia, human rights and employee’s exploitation. The media sensationalised its overseas labor practices and their commitments to being socially responsible were questioned. In the wake of such challenges Nike has employed several strategies to managing the negative publicity and as such policies were developed to monitoring and ensure exploitation was not occurring on Nike watch.
For Nike, to ensure survival, a constant review of its external and internal environment must be done as this will ensure that measures are taken to safeguard markets, profitability and leadership, Nike cannot be caught sleeping.   Nike’s value chain gave management the opportunity to understand internally competencies and how cost can be managed. Porter’s five force analysis (1985) gave an external view of the market and the reaction of the environment they operated within. Strategies can affected by the culture, environment and practices that has been proven, however strategy may differ as the company is faced with the challenges of the market and changes in the social context of its existence.
Nike’s management team must carefully analysis its environment in terms of developing a strategy that would allow the company to grow, evolve and continue to maintain leadership in its field.  
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