Nike, Inc. Business Strategy Analysis Essay

Words: 3620
Pages: 15

DUTA WACANA CHRISTIAN UNIVERSITY | NIKE, Inc. Business Strategy Analysis | Issues in Strategic Information Management | BIS301 | Elia Sagita Wijaya
E1000235 |

Table of Contents I. Executive Summary 2 II. Background and Assumptions 2 III. Mission Statement, Goals and Objectives 2 IV. Remote Environment 3 A. Economic Factors 3 B. Social Factors 3 C. Political and Legal Factors 4 V. Porter’s Five Forces 4 A. Bargaining Power of Suppliers 4 B. Bargaining Power of Customers 4 C. Threat of Substitute Products 5 D. Threat of New Entrants 5 E. Rivalry within Industry (High) 6 VI. SWOT Analysis 6 A. Strengths 6 B. Weaknesses 8 C. Opportunities 9 D. Threats 10 VII. Alternate
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* End-user. * Generation Y. * Increasing female customers.
The power of customers: * Retailers.
Usually retailers have less power in case of pricing. It is because they have to compete between retailers themselves and thus, give the power to the company to decide the price. But it is different in case of sales. Many company made a contract with well-known retailers to gain more market share. * End-user.
End-user have unlimited buying power, thus companies relentlessly tried to obtain their loyalty. However, if end-users are dissatisfied, they could easily switch their preference.
Based on some factors mentioned before, the bargaining power of customers is quite high. While customers’ loyalty is high, dissatisfied customers could easily switch their preference and cause some loss in company market share.
Threat of Substitute Products
Potential substitutes of sportswear industry: * Another category shoes. * Same-category but better shoes.
Some factors that affect substitutions: * Functionality
Can I jump higher? Can I run faster? Can I kick stronger? Can I move easier? That’s some example of functionality points that affect customers’ decision to look for a substitute products. * Style
For professional this factor is quite irrelevant, but it is a different case for the youngster. They tend to wear anything that will make them look