Signature Assignment Organization: Nike Capstone Part 1

Nike Inc.
Name
Institution
Nike Inc.
M1.
Question 2
  Select Signature Assignment organization - NIKE (be sure it’s an organization that has been in business for at least 10 years).  Make sure you choose an organization that will provide information to address core courses in the program, i.e., access to financials, demonstrates marketing strategies, etc. Provide a brief summary about your organization and why you selected it.
Nike Inc. is an American-based multinational corporation. Nike is involved in the designing, development, global marketing and sales of footwear, apparel, sports equipment, accessories, and services. It is the world's largest supplier of sports equipment. The pioneer of the company was on January 25, 1964. The organization changed its brand to Nike in 1971. It is a corporation that has been listed on the New York Stock Exchange, and as a result, it is required by law to publicize its financial statements (“Nikebiz: Company Overview,”2017). Nike is the best company of choice since it is globally renowned and it has existed for many years. Information from Nike's website is therefore easily accessible and can be taken as truth and used for analysis in the industry’s environment.
b. Determine your organization’s industry then review Porter’s five forces model and PESTLE analysis. Briefly provide a brief overview of how one or both of these analyses are useful in analyzing the organization you selected.
Nike Inc. is in an industry of sports, production of footwear, apparel and sports equipment and other athletic and recreational products. Another organization in the same industry as Nike Inc. is Adidas. Porter's five factors to analyze in business are the barriers to entry into the industry, the threats of a substitute product, the bargaining power of consumers, the bargaining power of suppliers and the threat of competitive rivalry. Another form of analysis is the PESTLE. It entails political, economic, social, legal and environmental aspects of the industry the business is in (Roper, K, 2012). PESTLE analysis of the organization helps us to discover any political things that put the business at risk such as the political climate such as civil war, which is bad for business. The economic and legal analysis of the market is also important for the analysis of the industry such as looking at the cycles in the industry and regulations set by the government. The Porter's five forces help t demystify opportunities from threats at each level. As a result, the organization’s overall performance of the team in the industry is gagged by the strengths and opportunities via the weaknesses and threats.
M2
Question 2
Compare your organization NIKE to the industry in accordance with Porter's five forces model and/or PESTLE. Write no more than 2 sentences for each of Porter’s five forces and/or PESTLE relative to your selected organization.  For example, “L/E for Legal/Ethical—Widget shipments to Somewhere Country, Outside USA, must meet customs in U.S., but officials at exit point expect additional pay under the table.
We will start by looking at PESTLE in an analysis of Nike Inc. The political climate in most of the markets is calm, and there has been an increment in the deals, which in turn expand free trade. Nike as such has an opportunity for further growth. Economically, the slowdown of the Chinese economy is a threat since it may lead to decreased sales. However, the stabilization of economies in developing countries has opportunities for greater sales. On the social aspect, there has been an improvement in positive views and attitudes about leisure and quality. This improvement has made Nike products more marketable. Technological improvements lie both as a threat and opportunities, in that, companies in the same market as Nike that invest more in technology successfully might end up more profitable. However, technological developments may lead to a lot of reduction of production costs for Nike or invention of more attractive products. Some legal developments, such as the improvement in the employment laws in developing countries has increased the cost of labor for Nike, but on the same front, they get to higher better-skilled laborers. We will now delve into an analysis of Nike Inc. using Porter's five forces. The first is the barriers to entry, in that industry, the costs of production, as well as the brand costs, are so high. Hence, the threat of a new entrant is weak. Secondly, there is the threat of a substitute product entering the market. This risk is moderate to Nike Corporation since others can replace some of their footwear. Thirdly, we look at the bargaining power of Nike's customers. Because customers are the most important part of any organization, this then becomes of substantial to moderate force. Fourth on the list is the bargaining power of the organization’s suppliers. Nike Inc. suppliers are so many and varied, and as a result, this element is of weak force to the company. Finally, we look at the part of competitive rivalry between Nike and other firms. In the industry, Nike faces a strong force of competitive rivalry due to the well-developed nature its rivals, a good example of a fierce competitor is Adidas (Nike, Inc. Form 10-k, 2015)
M3
Question 1
What is your organizations NIKE marketing strategy/mix? What differentiates it and or gives it a competitive advantage over others in the industry.  How is it relevant to Porter's model and or PESTLE?
Nike uses a four Ps marketing mix. The first P was standing for products. Nike has diversified the number of goods they produce to meet the needs of different consumers. They provide shoes, apparel, equipment, and accessories. In this way, they use PESTLE analysis ...