Description
This presentation highlights Nike's business strategy and it covers topics like SWOT analysis, corporate level strategies like diversification, acquisitions, business level strategy like porter's five forces and functional level strategy.
Elements of Strategy
Click to edit Master subtitle style
1/19/13
Introduction
?
Largest supplier of athletic footwear and apparel in the world Current worth is roughly $15 billion Started by Bill Bowerman & Phillip Knight Started in 1964 under the name Blue Ribbon Was a distributor of Onitsuka Tiger, a Japanese shoe maker In 1972, company launched its own shoes with Nike inscribed on it Current products include: Nike Pro, Nike Golf, Nike +, Nike Skateboarding Current subsidiaries include, Cole Haan, Converse , Umbro, & 1/19/13 Hurley International
?
?
?
?
?
?
?
SWOT
STRENGTHS
?Product
innovation through R&D:
Nike +
?
Strong sales and brand promotion outsourcing
1/19/13
?Strategic
SWOT
WEAKNESS
?54%
of revenue comes from footwear market Brand affected by allegations of poor labour laws
?
1/19/13
SWOT
OPPORTUNITIES
?Diversification ?Tapping
international markets
1/19/13
SWOT
THREATS
?Competitive ?Customers
industry structure
switching
1/19/13
Corporate Level Strategies
?
Diversification Outsourcing
?Strategic ?
Strategic Alliances Acquisitions
?
1/19/13
Diversification
?
1. 2. ?.
Related Constrained Diversification 70% revenue – footwear & apparel Sharing of technology, resources etc. Diverse products include bats, balls, eyewear, timepieces etc. Use of wholly owned subsidiaries
?.
1/19/13
Benefits of Product Diversification
?
High operational relatedness Achievement of economies of scale Higher profits of ambassador like Tiger Woods – diversify into golf industry
?
?
? Use
1/19/13
Strategic Outsourcing
?Outsourcing
manufacturing contracts to countries with cheap labour price risk
1/19/13
?Reduced ?Reduced
Strategic Alliances & Acquisitions
? American ? S3’s
Skiing Company - License
Rio Division – Nike’s PSA Sports Inc.
? Canstar ? Hurley ?
International
Umbro
1/19/13
Business level Strategy
?Porter’s
five forces
?
Differentiation
1/19/13
Porter’s Five Forces
?Threat 1. 2. 3. 4. 5.
from new entrants (Low)
High R&D Product innovation Economies of scale Switching Cost Brand Loyalty
1/19/13
Porter’s Five Forces
?Bargaining
power of suppliers
(Low)
?Bargaining
power of buyers
(High)
?Threat ?Rivalry
of substitutes (Moderate) among existing firms 1/19/13
Differentiation
?Based
on its different segments online
?Customization ?Product
Innovation
1/19/13
Functional Level Strategy
? Economies ? Quality
of scale
(Lean Systems)
? Process
innovations (Supplier management Diversity System 7) Responsiveness
? Customer ? Efficiency
(Learning effects)
1/19/13
Thank You
1/19/13
doc_185981168.pptx
This presentation highlights Nike's business strategy and it covers topics like SWOT analysis, corporate level strategies like diversification, acquisitions, business level strategy like porter's five forces and functional level strategy.
Elements of Strategy
Click to edit Master subtitle style
1/19/13
Introduction
?
Largest supplier of athletic footwear and apparel in the world Current worth is roughly $15 billion Started by Bill Bowerman & Phillip Knight Started in 1964 under the name Blue Ribbon Was a distributor of Onitsuka Tiger, a Japanese shoe maker In 1972, company launched its own shoes with Nike inscribed on it Current products include: Nike Pro, Nike Golf, Nike +, Nike Skateboarding Current subsidiaries include, Cole Haan, Converse , Umbro, & 1/19/13 Hurley International
?
?
?
?
?
?
?
SWOT
STRENGTHS
?Product
innovation through R&D:
Nike +
?
Strong sales and brand promotion outsourcing
1/19/13
?Strategic
SWOT
WEAKNESS
?54%
of revenue comes from footwear market Brand affected by allegations of poor labour laws
?
1/19/13
SWOT
OPPORTUNITIES
?Diversification ?Tapping
international markets
1/19/13
SWOT
THREATS
?Competitive ?Customers
industry structure
switching
1/19/13
Corporate Level Strategies
?
Diversification Outsourcing
?Strategic ?
Strategic Alliances Acquisitions
?
1/19/13
Diversification
?
1. 2. ?.
Related Constrained Diversification 70% revenue – footwear & apparel Sharing of technology, resources etc. Diverse products include bats, balls, eyewear, timepieces etc. Use of wholly owned subsidiaries
?.
1/19/13
Benefits of Product Diversification
?
High operational relatedness Achievement of economies of scale Higher profits of ambassador like Tiger Woods – diversify into golf industry
?
?
? Use
1/19/13
Strategic Outsourcing
?Outsourcing
manufacturing contracts to countries with cheap labour price risk
1/19/13
?Reduced ?Reduced
Strategic Alliances & Acquisitions
? American ? S3’s
Skiing Company - License
Rio Division – Nike’s PSA Sports Inc.
? Canstar ? Hurley ?
International
Umbro
1/19/13
Business level Strategy
?Porter’s
five forces
?
Differentiation
1/19/13
Porter’s Five Forces
?Threat 1. 2. 3. 4. 5.
from new entrants (Low)
High R&D Product innovation Economies of scale Switching Cost Brand Loyalty
1/19/13
Porter’s Five Forces
?Bargaining
power of suppliers
(Low)
?Bargaining
power of buyers
(High)
?Threat ?Rivalry
of substitutes (Moderate) among existing firms 1/19/13
Differentiation
?Based
on its different segments online
?Customization ?Product
Innovation
1/19/13
Functional Level Strategy
? Economies ? Quality
of scale
(Lean Systems)
? Process
innovations (Supplier management Diversity System 7) Responsiveness
? Customer ? Efficiency
(Learning effects)
1/19/13
Thank You
1/19/13
doc_185981168.pptx