Combined the attached three papers together to flow into one docum.docx

Combined the attached three papers together to flow into one
document in grammatical sense.
Running Head: NIKE INC. BUSINESS STRATEGIES
1
NIKE INC. BUSINESS STRATEGIES
8
Assignment 3: Business-Level and Corporate-Level Strategies
Chet Walker
Strayer University
Professor Hassan Yemer
BUS 499 – Business Administration Capstone
Winter 2019
Nike Inc. Business Strategies
The success of any business is influenced by planning,
preparation, and execution. The success of a business starts with
defining the business’s strategy at the corporate and business
level. The corporate level strategy is the planning pyramid of a
business which defines the main purpose of the business. The
target destination influences all the strategies and decisions of
the business. Business level strategies detail the actions taken
to offer value to customers and gain competitive advantage
through exploiting core competencies in specific product or

service markets. The business level strategy is influenced by
the firm’s position relative to its competitors as well as the five
forces of competition. In any business organization, consumers
are the foundation of its business level strategy. Nike Inc. has
been continuously focusing on innovation to develop and grow
its business. The paper presents Nike’s business level strategies
and corporate level strategies that will help the company to gain
competitive advantages in the long-term. The paper will also
examine Nike’s competitive environment to determine the most
significant competitors in the industry.
Business-Level Strategies
At a business-level, Nike utilizes a combination of two
strategies to ensure the offered customer unique products and
gain a competitive advantage in the market. Nike Inc. uses a
combination of product differentiation and cost leadership to
win a greater share in the market. The company differentiates
its products from other competitors through product innovation,
high-quality products, and technology development.
Differentiation at Nike Inc. enables the company to build its
brand image in the global market. In product differentiation,
for example, Nike integrates its cutting-edge design for its
shoes. Nike Inc. has utilized innovation and technology to offer
customers high-value products (Mahdi et al., 2015). For
example, customers can design their products in Nike’s website
and get it within the shortest time possible. The company has
also utilized research and development initiative to ensure
continuous innovation and product development to maintain its
competitive advantage in the market.
Nike does not utilize overall cost leadership as compared to
some of its competitors and new entrants in the industry. Their
products are higher end prices which customers are willing to

pay because of their unique quality and value in the product.
Nike ID and other personalized procedures including college
and sports sponsorships help the company to enhance
customer’s perception of their products which are specialized to
meet customer needs and wants (Mahdi et al., 2015). The
combination of differentiation and cost leadership has helped
boost Nike’s performance in the global market. The company
has utilized advanced technology to reduce the cost of
production hence offering a low price to the customer.
However, Nike Inc. should utilize mostly on product
differentiation to achieve long-term success in the industry. It
will involve the introduction of new products such as new
sports shoes as well as advancement in technology to
continuously cut the cost of production (Mahdi et al., 2015). As
a result, the company will be able to maximize its profit
margins and maintain its competitive advantages in the industry.
Corporate-Level Strategies
In Nike Inc., the biggest share of income comes from the
company’s sales on shoes and apparel. The company uses the
same technology, distribution channels and other resources for
other minor products. Although Nike has been growing in the
industry, corporate level strategies should be designed to ensure
the company’s growth. There are three main corporate-level
strategies that Nike has been using to ensure growth. Firstly,
Nike has focused on product development through the
introduction of new products (Burgelman, 2017). By using new
advanced technology, Nike has been able to remain competitive
in the market. Because of product development, Nike’s
products remain attractive to customers despite their change in
preference. Secondly, market development and penetration
have also been crucial to corporate level strategies. Nike has
been continuously opening stores and retailers in the United
States of America and other regions in the word. More so, due

to its strong brand image, Nike finds it easy to penetrate and
explore new markets as well as targeting new market segments
(Burgelman, 2017). Market development and penetration in
regions such as Africa and the Middle East have contributed to
an increase in Nike’s profit.
Lastly, Nike has an essential strategy that it should utilize on to
ensure continuous growth of the company. Supplier diversity is
an important aspect of business success. Nike customers are on
a worldwide scale leading to high demand for Nike products. As
a result, Nike has been diversifying its market scale and
ensuring continuous supply for sustained production (Mahdi et
al., 2015). With the ready and potential market that Nike has
attained, there is a need for supplier diversity. As the market
share increases, the need for more resources and raw materials
increase. As a result, there is a need for more suppliers to
ensure the company does not run out of resources. Supplier
diversity will influence sustained long-term success for the
company and ensure high-quality products for customers.
Product development, market penetration, and market
development can be achieved for a long-term without supplier
diversity (Burgelman, 2017). Supplier diversity is the key
contributor to Nike’s long-term success.
Competitive Environment
Nike is among the top three footwear brands in the world, with
Adidas and Reebok winning a significant percentage of the
market share. Adidas and Reebok are the top two Nike
competitors in the footwear industry, but there are other
competitors such as Puma, Converse, Under Armour, Fila, K-
Swiss, New Balance and Asics (Mahdi et al., 2015). The
footwear industry is highly competitive because of the easy
market entrance and technology development. New entrants in

the industry win customers’ preferences by offering low prices
although customers consider product quality in the market.
Many of the top sports footwear companies have shifted their
concentration from shoes to other products such as deodorants,
apparels, sports accessories and perfumes among other products
(Mahdi et al., 2015). Nike has managed to maintain a
competitive advantage over other companies due to its presence
in the global market. Nike takes advantage of its ability to
access international marketing platforms such as international
games, to market its products. New entrants in the industry do
not have the capital to finance advertisement in these
international platforms leaving Nike with a competitive
advantage to dominate the market.
Adidas is the top of Nike’s competitor in the footwear and
sportswear market. Adidas focuses mainly on the marketing of
its product television with ads which are very creative and
attractive to customers. Adidas also sponsors teams such as
Real Madrid, France, and Great Britain football teams (Mahdi et
al., 2015). Adidas’s business strategy is product
diversification. The company has been investing in technology
advancement to ensure customers get quality products. The
company has adopted light synthesis to replace its traditional
prototyping in making of footwear. Also, Adidas corporate
strategies include market development and market penetration.
Adidas is much focused on accessing new markets such as cities
to sell their products. More so, due to its large global market
and network, Adidas is focused on effective management of the
supply chain to ensure effective production process in the
company. The company’s multi-brand portfolio gives it a
competitive advantage over others.
Reebok also is a significant competitor in the footwear market.
It takes advantage of being a subsidiary to a large company in

the industry, Adidas. Reebok’s business-level strategy is
diversification which is influenced by innovation and product
development. Reebok produces excellent sportswear designs
such as Reebok Pump, Reebok Reezig. Reebok also applies
some aspects of product leadership (Hall, 2018). The company
penetrates the market by offering low prices at the start, then
charging a reasonable price when demand starts rising. Lastly,
Reebok has been working hard to ensure market development
and penetration for its products.
Puma Company is another significant competitor who was
established by the Rudolf after splitting from Adidas leaving his
brother Adolf to run it. It is the largest maker of athletic shoes
in Germany and other regions in the world. Puma’s business-
level strategy is mainly diversification which includes the
production of gymnasium equipment and Fitness and Nutrition
consultancy service to the customer (Baumann-Pauly et al.,
2016). This strategy is designed to make more profit for the
company and attract a diversified customer base. Lastly, the
company offers products to customers at lower prices compared
to Nike, Reebok, and Adidas. Despite Puma having minor
market share compared to Adidas, Nike, and Reebok, it has the
appropriate strategies to succeed in the long-term. Puma
applies a unique diversification strategy which broadens the
areas of concentration for the company making it unique. More
importantly, Puma has managed to charge customers fewer
prices which can be sustainable making it successful in the long
run.
Sportswear and the footwear market is a highly competitive
industry due to an existing company which has been already
established in the market. This means the market is a fast cycle
market. Puma Company will remain successful in the industry
by utilizing its strategies to win a better share in the market.

Every company in the sportswear and footwear industry is
diversifying on product development and improvement; Puma
has is unique by including other services not offered by other
companies (Baumann-Pauly et al., 2016). As a result, the
company will remain successful in a fast-cycle market.
Nonetheless, in a slow-cycle market, Puma will not have long-
term success. In a slow-cycle market, competition is low, and
only the innovative company which improves and develops its
products continuously will enjoy long-term success. Despite
offering low prices, and diversifying to other services, Puma
will not be able to maintain a competitive advantage in the
long-run. Other companies will develop new products and
innovate new ways to ensure a low cost of production hence
attaining competitive advantage.
Conclusion
The footwear and sportswear industry is highly competitive with
companies continuously innovating new products and adjusting
their prices to remain relevant in the market. More so, new
entrants in the market have increased making the market to be
crowded with many companies offering the same line of
products. It is only through product differentiation and cost
leadership that companies will be able to attain a bigger market
share. Companies in this industry need to develop new products
and diversify on other services to ensure sustained competitive
advantage. Nike has managed to win a large market share in the
global market. The company has also made appropriate
development to diversify its products and services. However,
other companies are innovating new ways to carry out their
operation creating a threat in the industry. Therefore, Nike
should invest much in research and development initiative to
maintain its competitive advantage in the industry.
References

Baumann-Pauly, D., Scherer, A. G., & Palazzo, G. (2016).
Managing institutional complexity: A longitudinal study of
legitimacy strategies at a sportswear brand company. Journal of
Business Ethics, 137(1), 31-51.
Burgelman, R. A. (2017). 9. Complex strategic integration at
Nike: Strategy process and strategy-as-practice. Handbook of
Middle Management Strategy Process Research, 197.
Hall, O. (2018). FASHION BUSINESS. Human Ecology, 46(2),
40-41.
Mahdi, A., Abbas, M., Mazar, T. I., & George, S. A. (2015). A
Comparative Analysis of Strategies and Business Models of
Nike, Inc. and Adidas Group with special reference to
Competitive Advantage in the context of a Dynamic and
Competitive Environment. International Journal of Business
Management and Economic Research, 6(3), 167-177.
Walker C BUS 499
Week 3 Assignment 1 .docx
Page 1
Page 2
Assignment 1: Compensation Practices
Chet Walker

Strayer University
Professor Marilyn Fitzpatrick
BUS 409 – Compensation Management
Winter 2019
Compensation Practice: Federal Government
Company Background
The United States Federal Civil Service is the designated
civilian workforce for the United States Federal Government’s
departments and agencies. After 22 years in the United States
Navy, I was looking for the opportunity to continue serving my
country and the Federal Civil Service was my best option. I
chose to write about the Federal Civil Service from the
perspective of an employee. I am currently employed as a
Federal Civil Servant for the Department of Veterans Affairs.
Competitive Strategy
The main compensation strategy used by the Federal Civil
Service
Nike has expanded their business to operate at a global level
which is due to the advanced technologies being announced
daily. Superbrands such as Nike have been described as one of
the central mediums of globalization and as symbols of a global
economy (Kazi, 2011). Nike products have been manufactured

in 51 countries in over 700 factories which include Korea,
Taiwan, Thailand, Indonesia and China, which in turn
subcontract out to various and local companies for more
supplies and materials. While Nike has created more jobs in
these different countries which is good for any economy’s
public value, they have received much criticism for
exploitation, poor working conditions and abuse of human
rights by paying less than the minimum wage. This unfair
disparity lies in how workers earned in money for their labor to
construct the shoe compared to what the celebrity will earned in
revenue from selling the shoe to the customer. It has been
known for Nike to pay workers $1.35 an hour in some of these
overseas countries to construct a shoe that will sell in stores
from the price range of $130 to $150. Since 2012, Nike has
worked to build back their reputation by putting more rules and
regulations in place to honor the true value of their workers,
which is estimated at over 500,000 workers overseas. However,
Nike direct employees in the United States are estimated at over
22,000 workers, whom may work in management,
administration, laboratories and logistics. With the scrutiny of
sweatshops, Phil Knight himself admits that Nike “has become
synonymous with slave wages, forced overtime, and arbitrary
abuse” (Klein, 2001, p375).
Technological advancements in sneaker manufacturing has led
to a significant change in the production process using
automation and virtual prototyping. Today, the overseas
workers are being replaced by robots and these robots will be
installed in factories over the next few years which is causing
56% of Southeast Asian salaried employment to be at risk.
With the shoemaker business in a competitive race, Nike
continues to lead the advanced technology trends in making
quality products such as Flyknit shoe line which is innovative
and eco-friendly. Engineers reduced waste by about 60% on
average for every Flyknit shoe vs. what’s used for traditional
shoes, saving nearly 2 million pounds of fabric-scrap waste
since 2012 (Kell, 2016). New 2020 targets include sourcing

100% cotton more sustainably and reducing landfill waste (Kell,
2016). Nike offers superb customization for its product along
with the ability of meeting the consumer demand quickly above
the rest of the competition. With the use of automation, Nike
could easily reduce the cost of defect rates and could save over
$400M in labor and material costs. Vietnam, for example, is
responsible for 40% of manufacturing shoes for Nike, this
percent could be reduced soon due to the use of automation.
Nike has adopted new advanced technology to speed up the
designs of each shoe. Through Nike’s partnership with NOVA,
the powerful technology platform from DreamWorks, Nike
produces photorealistic 3D images that eliminate the need for
numerous physical prototypes which translate into more designs
in less time (Tan, 2017). During a time of declining sales and
earnings, Nike continues to transform its advanced technologies
to stay relevant from the older generation to the younger
generation.
Industrial Organization Model and Resource-Based Models for
Above-Average Returns
These models are in place as a measuring tool which requires
Nike to think outside of the box and to focus on an external
perspective on how a competitive company could influence your
business strategy overall which allow Nike to see above-average
yields. To be successful, Nike should continue to pay close
attention to what its competitors are putting out as a product
and be able to be honest with how this product will sell and how
the consumer may or may not like the product. The question
that Nike should be asking itself, is this product marketable? Is
this product better than what we have similar on the market? Is
there some kind of new material that is of value that we may not
be using or should consider? While focusing on the external
environment, Nike should locate a segment that has the highest
potential for above-average returns. The next step would be for
Nike to create a strategy that suits its industry to draw in the
desired and expected returns. This strategy coincides with
obtaining the necessary skills and assets required to implement

the required business strategy. Companies that develop or
acquire the internal skills needed to implement strategies
required by the external environment are likely to succeed,
while those that do not are likely to fail (Hitt, Ireland, &
Hoskisson, 2013). Nike will continue to earn above-average
returns by utilizing the industrial organization and resource
based models and based off these actions, Nike will be able to
use models successfully in future to come. The uniqueness of
its resources and capabilities is the basis of a firm’s strategy
and its ability to earn above-average returns (Hitt, Ireland, &
Hoskisson, 2013).
Influence and Success of Nike’s Vision and Mission Statements
The corporate mission and vision statements of Nike are quite
simple, their overall goal is to be the leading athletic shoes and
apparel supplier in the world. Nike Inc.’s corporate mission is
“to bring inspiration and innovation to every athlete in the
world.” Nike’s mission statement prompts the business to
support the endeavors of athletes (Smithson, 2018). This
statement is apparent by how Nike supports their athletes and
their endeavors, for example, Michael Jordan. Michael Jordan’s
basketball career began back in 1985 and he signed a mega-deal
with Nike at the time to display the shoe called “Air Jordan,”
and 34 years later, this shoe is still the hottest shoe around any
state or town in the United States and even overseas. On a
humanitarian side, the former NFL quarterback, Colin
Kaepernick decided to take stance against police brutality by
kneeling during the playing of the National Anthem which drew
a lot of criticism. Mr. Kaepernick’s decision caused him to lose
his employment in the NFL. Nike decided to take a stance with
Mr. Kaepernick by presenting him a commercial platform to
showcase his stance about sacrificing everything for your
dream. Nike stands by its motto “Just Do It.” Nike’s vision
statement is built on the brand strength and development which
provides a picture of a bullseye on the future condition of Nike.
Nike Inc.’s corporate vision is “to remain the most authentic,
connected, and distinctive brand.” Through the evolution and

effective implementation of its corporate vision and mission
statements, the company supports its market position as a
leading producer of sports footwear, apparel and equipment
(Smithson, 2018).
Impact of Stakeholders on Nike’s Success
As a global business, Nike possesses a wide source of
stakeholders that play a major and significant part in the sales
of the company’s sports shoes and other products. Nike’s
stakeholders are as follows: Customers, Communities,
Employees, Governments, and Interest Groups. Nike’s
corporate social responsibility strategy gives top priority to
customers as a stakeholder group (Kissinger, 2017). Customers
are the single most important asset when it comes to the
company’s revenue because the company must be able to sell
sports shoes, apparel and equipment to the buying customers.
Customers can consist of a global chain of retailers, business
owners and major sports stores. Also, Nike works closely with
consumers and clients to tailor fit their products to meet the
needs of the customers as well.
Communities play an important part of what Nike plugs into as
a society. Consumers tend to spend money on the company’s
product based on what is going on within the community. For
example, when Nike took its stance with Colin Kaepernick, his
old jersey sales went up significantly because the consumer was
feeling the emotion and support from the Nike commercial
advertisement and words presented by Colin Kaepernick. In
2005, the Nike Foundation started its community development
programs in developing countries, with focus on supporting the
empowerment of girls (Kissinger, 2017). Nike allocates 1.5%
of its pre-tax income to support these community development
initiatives (Kissinger, 2017).
The significance of employees as a Nike stakeholder is
paramount because the employee’s personal performance and
hard work translates to the business aspect of the company’s
success and sales of all apparel. Nike treats its employees to
fair compensation, career development opportunities and a great

sense of purpose to support the mission, vision and goals of
Nike. Nike addresses these interests through corporate social
responsibility policies and programs that focus on internal
leadership development, talent management through coaching
and mentoring, and team building (Kissinger, 2017).
Government and regulatory authorities reside in all countries
that any Nike Inc. company operates within. The local
governments serving as a Nike stakeholder is important as well
because they control the terms of the permits, limits and legal
actions of how Nike interacts with the consumers. Governments
are interested in legal and regulatory compliance, as well as
business contributions to tax revenues and community
development (Kissinger, 2017). Therefore, Nike must make
sure that the company stays within legal compliance as a
business and supports the local communities to the fullest.
Nike’s social responsibility strategy is defined by focusing its
energy on the best interests of governments as a significant
stakeholder.
Interest groups play more of a significant role in the aspect of
making sure that there are fair labor practices, business
sustainability, and environmental conservation as well as
improving labor management and total environment impact to
Nike’s social responsibility policies and regulations. If the
interest groups support Nike, then the consumer will be happier
with the company and what principles they stand for as a
company. These stakeholders have significant impact on Nike
in terms of potential government intervention and in terms of
consumer perception regarding the company and its sports
shoes, apparel and equipment (Kissinger, 2017).
Together as one, these stakeholders work as a cohesive unit to
ensure that Nike remains the top global sports shoe, apparel and
equipment business in the world. These stakeholders play a
pivotal role in Nike thriving within their business operations by
achieving the mission, vision and goals of what Nike stands for,
“JUST DO IT!”

References
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013).
Strategic Management: Competitiveness and Globalization (10th
Edition). Mason, OH: South-Western Cengage Learning.
Kazi, Tasnim B. (2011). Superbrands, Globalization, and
Neoliberalism: Exploring Causes and Consequences of the Nike
Superbrand. Inquiries Journal. Retrieved from
www.inquiriesjournal.com/articles/604/superbrands-
globalization-and-neoliberalism-exploring-causes-and-
consequences-of-the-nike-superbrand
Kell, John. (August 22, 2016). How Nike is Changing the
World. Fortune. Retrieved from
www.fortune.com/2016/08/22/nike-change-world
Kissinger, Daniel. (February 7, 2017). Nike Inc. Stakeholders:
A CSR Analysis. Panmore Institute. Retrieved from
www.panmore.com/nike-inc-stakeholders-csr-analysis
Sage, Alexandria. (June 26, 2008). Nike profit up but shares
tumble on U.S. concerns. Reuters. Retrieved from
https://www.reuters.com/article/nike-idUSN2526447020080625
Smithson, Nathaniel. (August 28, 2018). Nike Inc.’s Mission
Statement & Vision Statement (An Analysis). Panmore
Institute. Retrieved from www.panmore.com/nike-inc-vision-
statement-mission-statement
Tan, Kai. (November 14, 2017). Nike: Will Investing in New
Technologies Help Reverse its Recent Poor Performance?
Harvard Business School. Retrieved from
https://rctom.hbs.org/submission/nike-will-investing-in-new-
technologies-help-reverse-its-recent-poor-performance/
Assignment 2 BUS
499 for Chet Walker.doc
Running Head: NIKE INC. CORPORATION SWOT ANALYSIS

1
NIKE INC. CORPORATION SWOT ANALYSIS
7
Assignment 2: External and Internal Environments
Chet Walker
Strayer University
Professor Hassan Yemer
BUS 499 – Business Administration Capstone
Winter 2019
Nike Inc. Corporation SWOT Analysis
Incorporated in 1967 under the laws of the State of Oregon,
Nike Inc. is dedicated to designing, development, and marketing
as well as selling athletic footwear, equipment, accessories,
apparel, and services. Currently, Nike is the world largest
seller of athletic footwear and apparel selling products through
Nike-owned retail stores, digital platform, retail account, and
independent distributors as well as sales representative licensed
by different countries. All Nike’s products are produced by
independent contractors outside the United States with the
equipment products produced in the United States and other
countries. Nike brands include six different categories: NIKE
Basketball, the Jordan Brand, Training, Sportswear, and
Football. Other brands wholly-owned include the Converse
which designs, distributes and licenses casual apparel,
accessories, and sneakers. Converse subsidiary brands are
selling under these trademarks; the Converse, All-Star, Star
Chevron, One Star, Jack Purcell, and Chuck Taylor (Baek et al.,
2017). The paper presents Nike’s greatest strengths and
weakness and evaluates general environment as well as forces
of competition.
Nike Inc.’s SWOT Analysis
Nike is among the three top competitors in the world for

sportswear and apparel. The other two competitive companies
include Adidas and Under Armour Company. One of the
greatest strengths that helps Nike to compete in the global
market is its global brand. With the famous “Swoosh” label,
Nike is recognized in the whole world. Swoosh help customer
to identify the unique products produced in Nike Inc.
Furthermore, Nike has an intense research and development
team which contributes to its innovative and evolving product
range. As a result of research and development, Nike
manufactures high-quality products which can be sold at a low
cost. However, Nike Inc. should conduct market research in
developing economies such as in Africa and developed products
to fit the demand of the African market. Likewise, the company
should use the Swoosh label for other apparels apart from
footwear to advertise their products.
Nike is highly depended on the footwear market which might be
vulnerable if for any reason this market erodes. Therefore, due
to Nike’s strong brand, the company commands a premium of
its price in that it sells products to the retailer at a high cost to
meet its higher profit margins. As a result, there is a possibility
of customers choosing products from other competitor offering
products at low cost especially in the emerging market (GÜREL
& TAT, 2017). Furthermore, the ongoing perception of the poor
working relationship with employees complaining about low
wages and poor working conditions is a great weakness that
Nike faces. Nonetheless, to fix these weaknesses, Nike should
apply different tactics. First, the company should invest in
other apparel not only footwear. More so, the company should
adjust its prices to be affordable for the customer to compete in
the market quickly. Lastly, Nike should continue with its
strategies to solve the issue of poor labor practices and working
conditions.
As reported on Nike’s 2018 end-year financial statement, Nike
Inc.’s intangible asset was at $438M. This includes the non-

monetary assets that cannot be touched, seen or physically
measured. The company’s core competency is epitomized by
sponsored celebrities that are creating heroes, selecting athletes
who succeed beyond all limits. However, with the risks
associated with heroes that sometimes they fall, the competency
can lead to public perception disaster. The core competence has
helped Nike Inc. to command a better market share in both
running and basketball shoes (Baek et al., 2017). From the core
competency, Nike can derive market capabilities such as
differentiation of products and service. Another capability for
Nike Inc. is the cost leadership where the company can produce
products at a low cost and sell at comparable cost in the market.
A Segment of General Environment
How a brand succeeds is influenced by several factors such as
sociocultural, technology, economic, political and
environmental (SHTAL et al., 2018). The main segment of the
general environment or Nike Inc. is sociocultural and
technology. From a sociocultural perspective, Nike contributes
to one of the trending issues globally on fitness. With an
increase in the number of people starting to workout, the
demand for Nike shoes are increasing hence more products are
purchased. More so, Nike has an initiative structured to
empower women in the society which has seen a positive effect
on Nike. As well, Nike empowers people with disabilities in
America creating s strong, caring brand image for Nike Inc. On
technology, Nike is reaping the best from the market. The
company has included computer-aided designing and computer-
aided manufacturing system (SHTAL et al., 2018). On the
company’s website, customers can design their unique shoe and
purchase in a very short while. With the technology, a customer
can choose the colors to be included in their product hence
favorable for customers.
Based on Michael Porter’s model of Five-Factor Analysis, the

most important external forces for the Nike industry
environment include competition, customers and substitutes.
The athletic footwear, apparel and equipment industry is highly
competitive. The companies include Adidas, Nike and Under
Armour Company among other companies such as Puma, Anta,
ASICS, and V.F. Corporation. The competition forces that
Nike's faces include low market growth rate and high
aggressiveness of firms. The low market growth rate has been
contributed by the high market penetration and saturation in a
market that grows very slow. Also, firms in the industry are
highly aggressive in competing for a more significant market
share. In addressing these forces, Nike Inc. has applied several
strategies. According to Brohi et al (2016), Nike applies
consumer affinity and connection for brands and products. This
is achieved through marketing and promotion, social
interaction, identification with prominent and influential
athletes to endorse their brands and active engagement through
sponsoring events.
Additionally, through ensuring products quality, innovation,
and development of new products, high performance, and
consumer value to win a bigger market share (Childs & Jin,
2018). However, Nike Inc. should include more strategies to
address these competitive forces. Firstly, the company should
increase awareness in the potential market not fully utilized by
the industry. There is a large market especially in developing
economies which need should be utilized. Global civilization
and advancement are being experienced in developing countries
hence need for sportswear for fitness and sporting activities.
Lastly, Nike should include advertisement on social media and
television. Many potential customers watch television; thus,
Nike adverts should be found both on international and local TV
channels.
Opportunities and Threats

Nike enjoys different opportunities that the company take
advantage of to win a bigger market share. Product
development where customers do not wear Nike’s products for
sports only but also fashion especially in youth culture is a
great opportunity. More so, the company can grow
internationally due to its strong brand recognition globally.
This opportunity can be supported by using global events such
as the world cup for marketing. Nike Inc. can take advantages
of these opportunities to win a bigger market share. On the
other hand, Nike experiences different threats. The company is
exposed to the international nature of trade which might lead to
the company experiencing loses as a result of different
currencies which might not have stable cost and margins
(GÜREL & TAT, 2017). Lastly, the sports shoes and garments
industry are highly competitive with competitors developing
alternative products. Stability of currencies is an economic
disaster and may not be easily addressed. However, Nike
should develop different products to address the problem of
competition.
References
Baek, W. Y., Byon, K. K., Choi, Y. H., & Park, C. W. (2017).
Millennial consumers' perception of sportswear brand
globalness impacts purchase intention in cause-related product
marketing. Social Behavior and Personality: an international
journal, 45(8), 1319-1335.
Brohi, H., Prithiani, J., Abbas, Z., Bhutto, A., & Chawla, S.
(2016). Strategic Marketing Plan of Nike.
Childs, M., & Jin, B. (2018). Nike: An Innovation Journey.
In Product Innovation in the Global Fashion Industry (pp. 79-
111). Palgrave Pivot, New York.
GÜREL, E., & TAT, M. (2017). SWOT ANALYSIS: A
THEORETICAL REVIEW. Journal of International Social

Research, 10(51).
SHTAL, T. V., BURIAK, M. M., AMIRBEKULY, Y.,
UKUBASSOVA, G. S., KASKIN, T. T., & TOIBOLDINOVA, Z.
G. (2018). Methods of analysis of the external environment of
business activities. Revista ESPACIOS, 39(12).
BUS 499
Assignment 3 for Chet Walker.doc
Rubic_Print_FormatCourse CodeClass CodeSEC-501SEC-501-
O500Academic Standards in Your State
Essay100.0CriteriaPercentageNo Submission
(0.00%)Insufficient (69.00%)Approaching (74.00%)Acceptable
(87.00%)Target (100.00%)CommentsPoints
EarnedCategory100.0%Summary of Teaching and Learning
Changes40.0%Not addressed.Essay has little or nothing to do
with teaching and learning changes your state will or has
experienced through shifts in required standards.Essay
inadequately summarizes teaching and learning changes your
state will or has experienced through shifts in required
standards.Essay clearly summarizes teaching and learning
changes your state will or has experienced through shifts in
required standards.Essay skillfully and convincingly
summarizes teaching and learning changes your state will or has
experienced through shifts in required standards. Word
Reflection Evaluating Summary30.0%Not addressed.Word
reflection has little or nothing to do with evaluating the
summary. Word reflection inadequately evaluates the summary.
Reflection provides inadequate supporting details. Word
reflection clearly evaluates the summary. Reflection provides
basic, appropriate supporting details. Word reflection skillfully
and convincingly evaluates the summary. Reflection provides
several distinctive supporting details. Organization15.0%Not
addressed.Statement of purpose is not justified by the
conclusion. Argument is illogical. Conclusion does not support

the claims made. Purpose statement is vague, and claims do not
thoroughly support it. Argument and conclusion are orderly,
but present unconvincing justification of claims. Purpose
statement and conclusion are clear. Argument shows logical
progression. There is a smooth progression of claims from
introduction to conclusion.Purpose statement and related
conclusion are clear and convincing. Information is well
organized and logical. Argument presents a persuasive claim in
a distinctive and compelling manner.Research
Citations10.0%Not addressed.Reference page includes errors
and/or inconsistently used citations. Sources are not
credible.Reference page lists sources used in the paper. Sources
are appropriate and documented, although errors are present.In-
text citations have few errors. References used are reliable, and
reference page lists all cited sources with few errors.In-text
citations and a reference page are complete and correct.
Sources are credible. The documentation of cited sources is
free of error.Mechanics5.0%Not addressed.Surface errors are
pervasive enough that they impede communication of meaning.
Inappropriate word choice and/or sentence construction are
used.Frequent and repetitive mechanical errors distract the
reader. Inconsistent language and/or word choice are present.
Sentence structure is lacking.Prose is largely free of mechanical
errors, although a few may be present. The writer uses a variety
of effective sentence structures and figures of speech, as well as
some practice and content-related language.Submission is
nearly/completely free of mechanical errors and has a clear,
logical conceptual framework. Word choice reflects well-
developed use of practice and content-related language.
Sentence structures are varied and engaging.Total
Weightage100%

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