Strategic Management and Competitiveness Affecting Nike's Success

Week 3 Strategic Management and Strategic Competitiveness Assignment
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BUS499 Business Administration Capstone
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Week 3 Strategic Management and Strategic Competitiveness Assignment
The business environment is arguably very competitive, and every company must invest in strategies that boost its performance, competitiveness, and growth. As such, any organization’s success depends on a variety of factors, including its adoption of new technology, technological, the impact of globalization, the company’s critical strategic models, its vision and mission statements, and the different levels of stakeholders. This paper will analyze the mentioned aspects that affect the overall success of Nike Inc, a sportswear company.
Globalization
Modern society is characterized by an extensive movement of commodities, people, and information enhanced by contemporary socialization and interaction trends across political borders. Since its founding, Nike has purposed to spread out its production and management globally. Its entry into other countries has proved advantageous for the company in various ways. First, the globalization strategy has enabled the company to market globally, considering variations, affinities, and possibilities to achieve global goals and satisfy the increasing consumer needs. Expanding globally also makes it easier for the company to understand different cultures, customer preferences, and information. As a result, it is possible to mold products designed to uniquely fit those needs (Hitt et al., 2020). Because of this, consumers in various areas of the globe can acquire Nike’s goods with ease and higher utility.
Ideally, using globalization, Nike can develop a strategy tailored to the market they are attempting to target while considering the regional, social, and cultural conventions of that area. What works in one region may not always be effective in another market. Additionally, Nike’s global presence enables it to take advantage of locational benefits such as cheap labor in some areas, fewer government restrictions in others, higher demand for luxury products, or wider consumer bases in other regions. For example, Asian markets have increased the availability of cheap labor, which is still competent and highly eager to achieve the quality standards demanded by Nike.
Technology
Another essential aspect of Nike’s advancement and growth is the focus on technology and innovation in its business strategy. Arguably, the modern business world demands the digitization of processes, artificial intelligence, websites, robotics, and social media. Without a doubt, Nike’s technological involvement is visible and is instrumental for its growth and success. First, the company has an extensive social media presence, majorly advertising new products, showcasing prototypes, creating awareness for their campaigns, and interacting with consumers. Ideally, social media forms a key feature of Nike and its user-friendly website, allowing customers to interact with the company, know its values, and give feedback for products.
Additionally, the company has invested in other modern technology such as artificial intelligence, 3-D printing, and automation of the production process. For instance, three-dimensional printing is used to enhance design implementation and to improve the shopping experience. Furthermore, Nike uses technology to engage consumers in their culture while mechanizing hitherto manual processes to provide them with customized, unique services tailored to each customer’s individual needs.
Industrial Organization Model
Ideally, Nike uses several business strategic models to dominate the market and gain an advantage. The industrial organization model, which focuses on the business macro-environment, purports that a company’s external environment is more critical than its internal factors. This means that the determinant of a company’s success is the structure of the industry in which it is situated (Hitt et al., 2020). Nike operates in an oligopolistic competition where several players or suppliers are supplying similar products to a high number of consumers. To achieve above-average revenues, the company in such a market must first choose a target consumer base for its products. In Nike’s case, the company targets athletes and youths, particularly those affiliated with hip hop, and undoubtedly, it has been very successful.
Additionally, the company understands its competition and attempts to stay ahead of the line. Nike’s m...