Running head: Nike Inc. 1 Nike Inc. 9 Nike Inc. Strayer University-BUS 499 April Monk 02/24/2019 Introduction Nike Inc. is one the largest footwear manufacturing company across the globe that deals with designing, developing footwear, equipment, service and accessories. Nike products are sold in approximately 110 countries with about 20,000 retail accounts. By the end of 2018, the multinational company operated 1,182 stores globally with 392 of them situated in the United States. Nike has incorporated various business and corporate level strategies to ensure that it continues being one of the most successful companies in the globe. Just like any other multinational company, Nike experiences a great extent of competition from other firms thus it is very important for it to develop new business strategies which will act as a competitive advantage to address the competition from other firms. Business level strategies Business level strategies are plans that a company develops to describe how it aims at building a sustainable competitive advantage. The nature of competition in various industries has been changed due to these strategies which have allowed further developments in products quality and cost. Nike uses a business level strategy that is similar to a differentiation strategy. When a company incorporates the differentiation strategy it aims at being unique by providing products and services that are greatly valued by customers (Petrie, 2016). The strategy is aimed at distinguishing products and services with other similar products offered by competitors in the market. The differentiation strategy entails paying key attention to various aspects of a product such as the design, features and brand image in order to successfully come up with a unique product. Nike has been able to build the image of their brand and differentiate themselves from their competitors through product innovation, development of technology and offering high quality products. Nike does not utilize the cost leadership strategy to a great extent because the products that it produces are higher end prices that the customers are willing to pay for due to the value and uniqueness they see in them. A cost leadership strategy is aimed at maximizing the level of profits by decreasing the production costs. Through personalization procedures such as NikeID and college sponsorships, Nike has been able to convince customers that their products are one of a kind and have been able to greatly create value for the customer. However, the company has incorporated the strategy in various instances such as in the late 1990s whereby it decreased the cost of its athletic shoes and other sporting equipment’s. Nike does not also incorporate a focus strategy to a great extent because it has a wide market segment. They have various products ranging from shoes to sporting equipment that are sold worldwide. Instead of using a focus strategy, the company aims at being the best in.

1. Running head: Nike Inc. 1
Nike Inc. 9
Nike Inc.
Strayer University-BUS 499
April Monk
02/24/2019
Introduction
Nike Inc. is one the largest footwear manufacturing company
across the globe that deals with designing, developing footwear,
equipment, service and accessories. Nike products are sold in
approximately 110 countries with about 20,000 retail accounts.
By the end of 2018, the multinational company operated 1,182
stores globally with 392 of them situated in the United States.
Nike has incorporated various business and corporate level
strategies to ensure that it continues being one of the most
successful companies in the globe. Just like any other
multinational company, Nike experiences a great extent of
competition from other firms thus it is very important for it to
develop new business strategies which will act as a competitive
advantage to address the competition from other firms.
Business level strategies
Business level strategies are plans that a company develops to
describe how it aims at building a sustainable competitive

2. advantage. The nature of competition in various industries has
been changed due to these strategies which have allowed further
developments in products quality and cost. Nike uses a business
level strategy that is similar to a differentiation strategy. When
a company incorporates the differentiation strategy it aims at
being unique by providing products and services that are greatly
valued by customers (Petrie, 2016). The strategy is aimed at
distinguishing products and services with other similar products
offered by competitors in the market. The differentiation
strategy entails paying key attention to various aspects of a
product such as the design, features and brand image in order to
successfully come up with a unique product. Nike has been able
to build the image of their brand and differentiate themselves
from their competitors through product innovation, development
of technology and offering high quality products.
Nike does not utilize the cost leadership strategy to a great
extent because the products that it produces are higher end
prices that the customers are willing to pay for due to the value
and uniqueness they see in them. A cost leadership strategy is
aimed at maximizing the level of profits by decreasing the
production costs. Through personalization procedures such as
NikeID and college sponsorships, Nike has been able to
convince customers that their products are one of a kind and
have been able to greatly create value for the customer.
However, the company has incorporated the strategy in various
instances such as in the late 1990s whereby it decreased the cost
of its athletic shoes and other sporting equipment’s. Nike does
not also incorporate a focus strategy to a great extent because it
has a wide market segment. They have various products ranging
from shoes to sporting equipment that are sold worldwide.
Instead of using a focus strategy, the company aims at being the
best in all these areas. The attributes such as swoosh that the
company has developed for their products and the ‘Just Do It’
motto create value for customers and differentiates their
products from those of their competitors.
The company has also incorporated a majority of high profile

3. athletes that they sponsor and use them to build their brand.
This has a significant impact on the customer base of the
company’s products. High profile athletes from various sports
such as Michael Jordan, Tiger Woods and Rory Mcllroy have
enhanced the brand image of Nike (Cavaleri, 2018). Nike has
been able to build its reputation to a great extent thus the
products it produces are viewed as valuable which makes it very
difficult for the company to lose their customers.
I think the differentiation strategy is the most important for the
company’s long term success. This is because Nike has focused
on the differentiation strategy to establish the company as the
standard in athletic wear. The company focuses on its product
line thus developing products which meet the customers’
expectations which facilitates customer satisfaction and
retention. The marketing strategy of the company has a key role
to play in its success. The company has been able to establish
itself as a leading fashion brand and brand for athletes. The
company has also achieved its success due to their commitment
to research and development. The commitment has enabled the
company to be highly innovative and develop high quality
products and create value for the customers. The ability to
personalize workout shoes and the partnership with Apple for
fitness training are some of the examples of innovation. Nike
will continue being a leader in the industry if it maintains the
same level of innovation.
Corporate Level Strategies
The company has divided its products in various ways. First
they manufacture products for three demographics: men, women
and children. Each group is carefully evaluated in terms of their
physical appeal and abilities. The company also incorporates
strong diversification to strengthen the differentiation of its
products. Performance equipment, apparel and accessories are
the main methods of developing diversification that other
sporting companies try to recreate.
The wide range of sports that Nike deals is aimed at making
each athlete happy. The different products for different sports

4. helps the company increase its customer base. Nike is
constantly looking for a new product to add to their list with a
view of raising the satisfaction of customers and strengthening
the relationship between the company and the customer. It is
also advantageous to produce a wide range of products because
a high level of product lines reduces the level of risk. The
company has also introduced NikeID for customization which
helps customers to get what they want thus strengthening the
customer satisfaction (Grant, 2016).
Nike has adopted various corporate strategies to ensure that is
maintains its top position in the industry. The strategies
include:
(i) Product development
The primary strategy for Nike’s growth is product development.
The strategy entails constantly introducing new product with a
view of maximizing profits. The company’s mission statement
‘’is to bring inspiration and innovation to every athlete in the
world.” The mission illustrates that the company is committed
to developing new designs and products through innovation. I
think that the strategy is the most important for long term
success because new technologies enhance the quality of
products and separate them from the competition. Through
product development, products are still valued and attractive
despite changing the preferences of the consumers. This
corporate strategy supports the company’s differentiation
strategy through product innovation.
(ii) Market penetration
This strategy entails growing sales in the existing markets to
increase revenue. For instance, the company increased its stores
and retailers in the U.S with an aim of increasing sales to their
American consumers. Market penetration is a secondary growth
strategy because the company has a significant level of
customers across the world. The company aims at penetrating
new markets through product uniqueness and affordability. Nike
aims at increasing the number of its retailers to increase its
market presence.

5. (iii) Market development
This strategy enhances the company’s growth through targeting
new markets. For instance, Nike expanded its operations to
Africa and the Middle East to increase their sales. The company
incorporates this strategy by investing in new technologies to
penetrate new market segments. The financial purpose of Nike
under this strategy is to maximize its profits by increasing its
customer base by penetrating new market segments (Berger-
Walliser, 2016).
(iv) Diversification
This strategy is the least significant in the company’s corporate
strategies for growth. The strategy entails coming up with new
businesses to achieve growth. The company used this strategy in
its early years when it introduced sports equipment’s and
apparel into its product line. Diversification supports the
differentiation strategy through new businesses that supply
materials for product innovation. The strategic financial
purpose under this strategy is to reduces the company’s risk by
entering new industries.
Competition
Nike has a global revenue of 33 billion dollars. Its brand is
valued at 27 billion dollars and is the leading company in the
footwear market. Just like any other top firm or organization,
Nike is faced by top competitors who produce similar products.
The following are the major competitors of Nike:
(i) Adidas
Adidas has a global revenue of 16 billion dollars and its brand
is valued a 7 billion dollars. The key advantage that Adidas has
over Nike is that it operated in both the Adidas and Reebok
brand. The combination of the two makes Adidas the top
competitor of Nike. Adidas competes with Nike not only on the
footwear but also on accessories and clothing (Nayak, 2017).
The major product that Adidas deals with is footwear that comes
with diverse designs and style. Its footwear is athletic and
strong.
(ii) Puma

6. Puma has a global revenue of 3.4 billion dollars and is common
for its running shoes, clothing and apparels. The founder of
Puma and that of Adidas were brothers but had a fallout in1948
which lead to the creation of the two companies. It is evident
that Adidas and Nike are far ahead but based on the revenue
generation of Puma, it is evident that its products are loved by
many. Puma aims at developing its brand by supporting peace,
sustainability and creativity. The company has also invested in
manufacturing watches and other accessories.
(iii) Fila
Fila is also one of the largest footwear companies and also one
of Nikes key competitors. The company uses the pricing
strategy to attract their customers. The company’s products are
of high quality but relatively cheap compared to those produced
by Nike, Adidas and Puma. The company is commonly known
for its cost advantage and the design of its products.
I think that despite the competition that Nike faces, it is most
likely to be successful in the long-term compared to its
competitors. The company has invested heavily in innovation
and technology which is one of the major determinants of the
companies that will succeed in the coming years. The company
has also entered into a partnership with Apple for fitness
training. The company is dedicated to offering value to their
customers thus increasing its customer base and customer
retention.
Conclusion
Nike Inc. is one the largest footwear manufacturing company
across the globe that deals with designing, developing footwear,
equipment, service and accessories. The company uses the
differentiation business level strategy to a great extent and the
cost leadership strategy less. This is because the products that
the company produces are higher end prices that the customers
are willing to pay for due to the value and uniqueness they see
in them. I think the differentiation strategy is the most
important for the company’s long term success because it has
focused on the strategy to establish the company as the standard

7. in athletic wear. The company has adopted various corporate
strategies such as product development, market penetration,
market development and diversification to maintain its top
position in the industry. I think that the product development
strategy is the most important for long term success because
new technologies enhance the quality of products and separate
them from the competition. Nike is faced by major competitors
such as Adidas, Puma and Fila. I think that despite the
competition the company is likely to achieve tremendous
success in the long run due to its heavy investment in
innovation and technology.
References
Berger-Walliser, G., Shrivastava, P., & Sulkowski, A. (2016).
Using proactive legal strategies for corporate environmental
sustainability. Mich. J. Envtl. & Admin. L., 6, 1.
Cavaleri, S., & Shabana, K. (2018). Rethinking sustainability
strategies. Journal of Strategy and Management, 11(1), 2-17.
Grant, R. M. (2016). Contemporary strategy analysis: Text and
cases edition. John Wiley & Sons.
Nayak, T. (2017). " Just Do It"@ Ad Campaign: The Case of
Nike Inc. Globsyn Management Journal, 11.
Petrie, J. G. (2016). U.S. Patent Application No. 29/520,561.
8

8. Week 6 Assignment 2
April Monk
Strayer University
BUS499 Business Administration Capstone
Dr. Grizzell
02/10/2019
Introduction
The Nike Company is a giant company whose operation are
influenced by a number of factors. The environment under
which the company operates influence its level of production,
sales and marketing. Additionally, the environment is an
important function of the company’s human resource
management. The industry which the company operates in is
highly competitive due to existence of other companies. The
company has come up with extensive strategies which increase
its ability to compete and increase its customer base. The five
forces of competition are a major ingredient of the company’s
competitive design. The management in the company understand
the importance of adopted a well-structured design to enhance
future improvements and control external threats and
opportunities. The strengths and weaknesses of the company
also influence production and marketing. The available
resources, capabilities and core competencies are integral in
achieving a vantage position in the sports merchandise industry.
General environment
Sports merchandise industry is made up of different components
which directly influence the existing company. The world of
sports has grown in popularity during the last few decades. This
has prompted the growth of a robust industry which focuses on
manufacturing and selling sportswear and other accessories. The
environment in this industry is highly competitive due to
existence of many company which produce similar products.

9. Companies such as Adidas, Puma, and Mikasa among others
offer competition to Nike. Therefore, the existence of a highly
competitive nature within this industry ranks as the most
influential part of the environment. Technological advancement
also plays a huge part in influencing this industry. The world of
sports has embraced application of new and innovative
technologies which improve performance. The company has to
adapt to the change in customer preference in terms of the
choice of technology. This is because a customer influences the
company’s level of sales and production.
Five forces of competition
The five forces of competition are important to the company
since they influence its operations. The factors determine how
much the sportswear industry is attractive thereby influencing
the strategies laid out by the company. The forces also
determine the attractiveness of this industry in terms of
favorable competition and likely profit margins. The factors
also directly influence the company’s ability to give good
services to its customers thus gaining loyalty. These
microenvironment forces help the Nike Company to apply core
competencies and resources to achieve high profits.
Item 1
The onset of new sportswear companies whose products are
almost autonomous creates a threat to the firm. These products
are a good customer substitute. Some customers go these
products since they solve the same economic need. The
availability of such close substitute combined with the
customer’s ability to bargain imposes a threat to the company’s
profits. The company has come up with new strategies to ensure
that prospective customers opt to purchase a Nike brand. The
threat of substitutes is minimized by the company ensuring that
their products are simple and well designed to fully satisfy the
customer needs. Nike has built affordable sportswear with
modern features and easily accessible to potential customers
thus neutralizing the threat of substitutes.
Item 2

10. Among the potential impediments of making profits in the
organization is the threat created by new entrants in the
industry. Within the last two decades, there has been an upsurge
of new sportswear companies. These new companies have led to
the deduction of profits as previously made by the company.
Though there is no perfect competition, profitability must be
above zero so that the business can stay afloat. These factors
has been neutralized by customer loyalty to the Nike Company.
The company has also switched the cost of some products while
ensuring that it takes full advantage on its access to the market
channels. Nike has a strong brand which has been in existence
for decades. The popularity and effectiveness of Nike products
ensure that it enjoys a larger part of the existing customers.
Individuals who have previously used Nike brand remain loyal
to the company thus the threat of new entrants is minimized
(Porter, 2008).
Evaluation
The Porter’s five forces framework is an integral tool used to
look into enhancing completion ability of the organization. The
framework creates an in-depth analysis of the profiting making
ability of any organization therefore painting the goal driven
competition. Profit making is associated with the
microenvironment forces. Unlike the macro environment forces
which are inclusive of the external factors, microenvironment
factors are those factors which surround the firm but these
forces adversely affect the profit making prowess of the firm. A
single alteration of any of these factors prompts the company to
rearrange its marketing strategies so as to reach the profit
ceiling. The Nike Company has dealt with the threat of
substitutes and new entrants by ensuring that its products are
quality, assessable and affordable. The company has intensified
its advertisement with signed deals with major sports
federations such as the NBA together with major athletes. This
makes the brand popular thus attracting more customers.
Future improvements
The company should improve its performance by increasing its

11. production to other sports accessories. Additionally, Nike can
reinforce their dominance in future by fully sponsoring major
leagues such as English Premier League or any other sport
league. The company’s management should work to minimize
competition by buying smaller companies to increase customer
base.
External threats and opportunities
The major external factor affecting Nike Company is its
customers. Individuals who are willing to purchase the
company’s products influence how Nike performs. Additionally,
customers are Nike computer consumers which means that their
preference in consumer sportswear directly affects the company.
Apart from customers, the company operations are affecting by
the market forces. Existence of similar products in the market
results into higher competition. Companies such as Adidas,
Puma among others develop similar consumer electronics. This
lowers Nike’s products consumption resulting into lower
profits.
Threats and opportunities strategies
The company should come up with a feasible design of
satisfying its customers. The company should increase customer
satisfaction and create active online platforms to receive
comments, suggestions and complaints from customers. The
company should also made strides in ensuring that it stays
relevant in the market. The company’s structure, human
resources and management should provide a strong foundation
for operation. The company’s philosophy of creating simple,
unique and reliable products will ensure that Nike remains
dominant in the market even in the future.
Strengths and weaknesses
Nike has been involved in numerous controversies in the past.
Its involvement in such scenarios is the company’s greatest
weakness. The company also has experienced strikes and go-
slows from employees demanding better working conditions.
The greatest strength in this company is existence of a highly
organized management which is able to coordinate production,

12. human resources and marketing. This ensures the company runs
smoothly without major setbacks. The company also enjoys a
robust communication network between all stakeholders.
Threats and opportunities Strategy.
The company should adopt a well-defined organizational
structure so as to maintain effective competition within the
consumer electronic industry. There is a strong product rivalry
in the market propagated by cheaper and more reliable products.
Nike’s success in the market lies within its goal, mission and
structure. The company was founded with a goal of providing
well designed and reliable products. This is should be seen in
the company’s unique products. Additionally, the company
should minimize involvement with controversial characters and
issues in the sports industry. This will ensure that it maintains
all its customers thus maintaining profit margins.
Resources, capabilities and core competencies
Nike Company has the ability of growing its profits to
unimaginable levels. The sports industry is robust with
discovery of new game platforms and an increase in the number
of people participating in sports. The company has numerous
assets includes a stable financial position, competent and
skilled employees, many offices and plants spread across the
world and numerous shops in different countries. With these
resources the company can increase production and improve
marketing. Although the company has been named as the most
robust in sportswear industry, proper utilization of the resources
will increase profits and dominance in the industry (Nike,
2010).
References
Nike. (2010, May 23). Nike Inc.'s Website. Retrieved from
Nike: http://www.nike.org
Porter, M. (2008). The Five Competitive Forces that Shape
Strategy. Harvard Business Review, 78-93.

13. Running head: WEEK 3 ASSIGNMENT 1
1
WEEK 3 ASSIGMENT 1
2
Week 3 Assignment 1
Strayer University
BUS499 Business Administration Capstone
Dr. Grizzell
01/20/2019
April Monk
Introduction
The Nike company is a giant multinational company whose
mission is to produce and market footwear together with other
accessories. Additionally, the company offers services and sells
other equipment. the company is affected by both external and
internal factors. Given that the company is a leading supplier in
athletic apparel and footwear, it records huge revenues. The
company was listed in 2018 as number 89 in the Fortune 500
category of giant companies in the United States. The list is
based on how much revenue a corporation makes. Nike is the
most expensive sportswear company with a net worth of
approximately $29.6 billion as at 2018.the corporation supplies
sportswear worldwide. additionally, the company has embraced
technology which ensures that it maintains its sales. The
company has more than 74,400 employees worldwide. Although
the company makes huge profits, application of industrial-based
model and resource-based model can increase returns to above
average. The company’s vision and mission contribute to its
success (Nike, 2010).
Globalization
Change in global trends has hugely affected the Nike

14. Corporation. The company has opened a total of 45 offices all
over the world excluding offices located in the United States.
The company has spread it tentacles to other continents
becoming a member of almost all sport events. Nike products
are distributed through the contracted shops spread all over the
world. In total, the company has 700 shops outside United
States. Globalization has expanded the company’s net worth by
increasing sales. This ensures that the company is able to
compete with other similar sportswear firms. The company is
able to reach its customers all over the world due to its
marketing designs. Nike has embraced globalization as a
marketing strategy and this ensures that its products reach all
potential customers. additionally, the company has entered into
marketing agreements with global marketing companies such as
Amazon and Sweatshops. Globalization has also affected the
way this company undertakes its advertisement campaign. The
company has now embraced global trends of advertisement such
as celebrities and international athletic teams. The company has
also entered into official contracts with major leagues such as
the National Basketball Association (NBA) to become their
official uniform supplier.
Technology
Nike has incorporated new technology in its production process.
The company applies new and innovative technology in
manufacturing, marketing and customer services. The company
was among the first global corporations to adopt marketing
using the internet, managing its operations and communications
via email technology and applying advanced communication
technologies such as Broadcast. Application of such
technologies in marketing has been instrumental in increasing
sales. Through internet marketing the company is able to
advertise its brand to potential customers. This advertising
model has also increased the number of purchases since willing
buyers can shop online. The company’s products can be located
and purchased online. The company’s embrace of online

15. shopping is an integral factor in the evident growth in Nike
brand and increased customer satisfaction.
The manufacturing process at Nike adopts new technology.
Most of the merchandize are in line with global trends such as
incorporation of footwear with Bluetooth. The company also
produces products which can be incorporated with a chip that
efficiently controls numerous functions. The products are
incorporated with new technology such that the new features
allow users to perform less functions. The company simply
makes it easier to enjoy sports while ensuring that the products
control user functionality. Embracing such technology has led
to more individuals preferring Nike products. This has
eventually led to growth in customer base thereby increasing
Nike’s revenue.
Industrial-Based Model
The company strategic actions are influenced by external
factors. These are the factors outside the company which
directly affect the company’s operations. Nike company is
highly influenced by its customers. This is the biggest external
factor affecting this company. The company should come up
with new methods of improving customer satisfaction while
ensuring that it attracts more customers. This can be achieved
through an intensive social media campaign advertising its
brand and attracting potential customers. The company also
operates in different countries thus it is highly affected by
different governmental policies. Nike should understand
government policies in different countries to ensure easy ways
of doing business. The company can also fund some government
projects to improve their marketing strategy in those specific
countries. Nike faces huge competition from similar companies
such as Adidas. The company has embraced new technology to
improve customer satisfaction. The decision-makers in the firms
also ensure that all their designs are such that they improve the
corporation’s social and financial position.
Resource-Based Model

16. The resource-based model is purposed to look into how a
company can apply its resources and other internal factors so as
to increase returns to above average (Scott, 2016). The model is
founded on the idea that the company’s strategies are based on
its resources and unique features. additionally, the model
assumes that each company has in the past been involved in
developing unique capabilities and resources which improve its
ability to compete with other similar corporations. Nike
company should employ individuals with unique skills and
knowledge which embrace new innovations to increase
competitiveness. The company has numerous resources in terms
of finances, productions lines, management and human resource.
Nike should use this specialized resources within its internal
environment to increase production. The company should also
contract more firms in its manufacturing and marketing
strategy.
Vision
Nike’s vision is an important ingredient to its success. The
vision is an exact representation of the fact that the company is
a giant athletic sportswear company. Nike’s vision statement is
“to remain the most authentic, connected, and distinctive brand
(Nike, 2010).” Nike works around this vision with its major aim
being to continuously grow its brand. The company’s vision has
particular words which shift focus towards brand development.
This statement poses the idea that Nike’s brand is already
authentic and relevant to the customer needs. The company also
poses to continue producing better products. This has catapulted
Nike into increasing sales since customers are satisfied with its
products. The vision statement is central to Nike’s marketing
strategy.
Mission
The mission statement is important in ensuring that a company
competes well and increases its global reach. Nike’s mission
statement is, “to bring inspiration and innovation to every

17. athlete in the world (Nike, 2010).” the company attracts
individuals into buying its products by positing that every
human being is an athlete. The company’s mission is aimed at
ensuring that individuals are interested in athletics by inspiring
and creative innovative products. This mission statement is
pivotal increasing growth and competition. Nike’s mission is
designed to target every individual as a potential customer
Stakeholders
Company stakeholders determine the level of success. These
individuals are instrumental in supporting the company’s new
and existing policies. Nike’s stakeholders include investors,
management and employees. These individuals act in ways
which favor the growth and development of the company’s
brand (Abiodun, 2010). The stakeholders are also integral in
managing Nik’s resources, marketing finished products and
advertising their Barns. The success in the production process
and marketing is directly proportional to the actions of
stakeholders.References
Abiodun, A. (2010). Interface between corporate vision,mission
and production and operations management. Global Journal of
Management and Business, 10(2), 18-22.
Nike. (2010, May 23). Nice Inc'.s Website. Retrieved from
NIKE: http://www.nike.org
Scott, J. (2016). Empowering your teams will help you
successfully implement your corporate vision. Strategic
Finance, 12-13.