Strategic Management and Strategic Competitiveness: Nike
Note: This assignment should be 4-6 pages not including
The title or source pages. The headings for each section are provided below as well as tips for success.Delete the content provided and replace it with your own content.Refer to your assignment instructions, Assignment Formatting Tips PDF, and the scoring guide (rubric) for specific details as you complete your paper. Delete this text.)
Write an introduction paragraph. No more than 6 sentences. No direct quotes. (Replace this text with your text which will be in black font.)
Globalization
(This is Step 1 of the assignment. You are asked to assess how globalization and technology changes have impacted the corporation you researched. Consider the various aspects of globalization discussed in the course and assess [e.g., make judgments about] their impact on the selected corporation.
Aspects could include the global expansion of the corporation, the impact of global competition, and the global economy.
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Technology
(This is a continuation of Step 1 of the assignment. Consider the various aspects of technology discussed in the course and assess [e.g., make judgments about] thew impact on the corporation. Aspects could include: cloud computing, social media, crowdfunding, program apps, email, texting, websites, automation, robotics, IOT [Internet of Things], e-commerce, data and analytics, etc. Support your rationale with specific evidence. Delete this text)
Industrial Organization Model
(This is Step 2 of the assignment. You are asked to apply the industrial organization model to determine how your corporation could earn above-average returns and to support your response with specific evidence. Apply the components of the model, as described in the course material, to the specific corporation.
Demonstrate an understanding of the concepts and how to apply those concepts to a real-world corporation.
Strategic Management and Strategic Competitiveness: Nike
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Introduction
Organizations strategically manage their operations to remain competitive. This paper analyses how Nike corporation has made this possible by adopting technological changes and globalization to achieve its objectives. Further, the corporation can earn above average through industrial organization and resource-based strategic models to expand its business through producing wearable devices and sports ware equipment (Kim, 2020). The mission and vision statement have influenced the company’s success by inspiring consumers and being innovative in production. Also, stakeholders such as customers, employees, suppliers, and shareholders have contributed to the growth of the brand.
Impact of Globalization and Technology Changes on Nike
Globalization
Globalization enabled Nike to transform from a small local brand to a worldwide shoe brand recognized in all countries. The corporation was able to identify emerging market needs following the global economic changes in the world and develop its products which attributed to its competitive advantage. Besides, the company has considered sourcing raw materials for manufacturing from different countries with favorable prices and special expertise. The corporation today produces its shoes in forty-two countries with its manufacturing sector having one million employees all over the world. Hence capitalizing on globalization by seeking low-wage labor for manufacturing its products while design and marketing are done from the US which has impacted its high revenue of thirty-six billion dollars and high stock shares (Nike, 2023). Despite the critics of ethical labor practices, the corporation addressed the matter thus promoting healthy labor relations and instilled transparency. Also, the corporation has adopted sustainable behavior in the manufacturing process with a focus on promoting a sustainable environment and improving community welfare.
Technology
Nike has adopted changes in technology to remain innovative and maintain its competitive edge. The corporation adopts new innovations such as creating patent-worthy innovations that outsmart the competitors. Additionally, partnering with tech giants, for instance, in 2017 the corporation demonstrated the ability of augmented reality and virtual reality, existing technologies that would enable the company to improve on design and end product. Technology has also impacted branding strategies as a marketing method that makes them visible to the target audience and maintains brand loyalty. Its digital platforms allow the company to connect directly with customers an e-commerce strategy that increases sales. Technology has enabled the corporation to gather information for data analysis to better understand customer taste and behavior, hence creating personalized marketing messages to improve customer experience. Maintaining customer experience has impacted the company’s success, for instance, in 2017, the company released a jersey with an NFC chip that intertwined the Internet of Things (IoT) and wearables that made the connection between basketball players and fans stronger.
Strategic Models
Industrial Organization Model
The model considers the external factors in the industry within which a corporation competes in finding opportunities that would enable it to earn above average. Nike’s good performance, therefore, according to the model depends on how the shoe industry operates. Hence, to earn above the average Nike should consider the four components of the model. One, Nike should operate in an industry with opportunities such as designing wearable devices to gain more competitive advantage thus influencing earnings above average (Hitt et al., 2019). Wearable devices such as fitness trackers, smartwatches, and biometric sensors can help intersect technology with fashion and integrate them with shoes and clothes. Second, implementing its internal resources such as innovation in developing super...