Nike Internal Factors

Nike Corporation today is the largest sports apparel and foot article of clothing brand in the world. Thousands of people wear Nike gear non still to the playing country but also so social gathering and other episodic reddents. Nike is angiotensin converting enzyme of the pioneers to take sportswear from the playing field to public domain. It not only made wearing sports wear popular and turned it into elan wear but also simultaneously captured the serious performance wear market.The growth of the troupe over the years has been attributed to its brand building efforts and productive marketing. When it first memorialize into the industry the market was dominated with German products and others products even those made in America were considered inferior to the products from the European giants standardised Adidas and Puma. To scale this they collaborated with japanese partners who can contribute similar quality at cheaper prices. afterward nearly eight years of selling t hrough importing, Blue ornament Sports the company that evolved into Nike was formed. The name NIKE was taken from Greek goddess of victory and Swoosh was adopted as brand logo. (Nike, 2007)Strengths of NikeNike Business ModelThe Nike business model has teentsy changed over the last four decades. The company was founded with the belief that it can provide customers products at competitive prices by getting them manufactured in japan and selling them over in United States. Over the years the destinations nonplus changed but the philosophy remained intact.As the income level in Japan change magnitude it shifted it manufacturing units in Taiwan and Korea. After the boom in Korean and Formosan economy it shifted its base in other emerging economies ilk Indonesia, Thailand, Vietnam and mainland China to leverage the cost of production difference. This has resulted in reducing the costs significantly and the company is enabled to deliver maximum value to its customers.Strong Marke ting Abilities each this time Nike managed the product design, marketing, sales and distribution system which made it one of the first company in the world to focus on the bosom competitive advantage and outsource the rest.Strong Supply Chain focusingThis strategy not only enabled Nike to focus on its strengths of marketing and calculating but also able to leverage the specialization of the vendors supplying the goods. For drill Shoes were manufactured cost effectively in Taiwan and Japan while clothing is manufactured in labor inexpensive countries like Indonesia, Vietnam and Thailand. Recently with increase operations and established brand the company has changed focus on streamlining operations, efficient demand forecasting and supply chain management. laurels Advertising with Cutting Edge ProductsOn the marketing front the company spend big amount on building the brand since the mid(prenominal) eighties. The success of Nike advertising can be attributed to its repeated succ ess of plectron up the next superstar in world or sports like Michael Jordan, Tiger Woods in past or Sharapova and Michelle Wie at present. streamlined Retail Management and Brand ManagementStarting from the running shoes, today the company has turned into a lifestyle brand. Today it not only sells shoes and sports gear but casual clothing, bags, fashion accessories etc (Holmes, 2004). The number of origin keeping Units (SKU) becomes large if one considers that these accessories and gears are developed according to motley sports following like cycling, aquatic, skateboarding, outdoor activities, football, baseball, soccer, golf and tennis.Merchandise MixTo enter into mixed price points with diluting the brand Nike has bought various brands like Exter, Starter, Team Starter, Asphalt, bread Haan shoes, Converse, Hurley skateboard gear, Bauer etc.WeaknessIssues with SweatshopsThis dead fish focus on leveraging low labor cost in South eastbound Asian economies to deliver competitive products has often landed Nike in various sorts of troubles from human right groups and labor unions back home, most blaming the company for exploiting children and workers in inhumane conditions. Numbers of these groups blamed it for bringing in and supporting the sweatshop nuance in these economies and the company once famous for innovative designs and creative products short became poster child of anti-globalization worldwide. Noting this Phil Night in said in yearbook meeting The Nike product has become synonymous with slave wages, forced overtime, and commanding abuse. Since then Nike has taken number of steps to cut this inquietude in the system and develop respectable human and working standards for its terce party vendors.Fall in the Sports shoes market due to changing trendsOver the last few years there is continuous pin in sports shoes sale because of trend of non sports shoes with jeans. This has resulted in increasing discount and low realization. Nike has to s ort out this aspect of their business on with the rest of sporting gear.ConclusionOver the years Nike has moved from manufacturing to stringently a R&D and marketing company. Today Nike home plate only looks after the designing, market trends and marketing of the products while outsourcing all others. This may have resulted in cutting the cost but it has also change magnitude the dangers like sweatshops and blemish to the brand equity of the company.Nike (2007) Nike official Website 2007. Retrieved on twentieth March from www.nikebiz.com