Strategy Formulation - NIKE Research Paper Example | Topics and Well Written Essays - 1250 words

Strategy Formulation - NIKE - Research Paper Example They also experience high operation costs in markets that are not suitable for its products since they begin by sneakers. Opportunities The company has the opportunity of promoting its brands not only as sportswear but also as fashion-oriented products (Blakey, 2011). A number of people use NIKE products exclusively as fashion wears. It also experiences high demand for both footwear and clothing meant for leisure activities. The company should employ and development its use in internet sales that has been provided to increase its growing capacities with an excellent marketing platform. Threats Experience a large number of Competitors who replicate the product designs of NIKE and its business model (Bamberger and Meshoulam, 2000). Some of these companies that give NIKE stiff competition include Adidas-Solomon AG, Reebok, and many others. It experiences financial losses due to unstable costs and margins caused by the use of different international currencies. These are threats that res ult from the fact that it is involved in international trade where it has to buy and sell goods in different foreign countries. The model of its products has not changed much from what was designed by Knights. This has significantly reduced the competitive advantage with other similar products that have much improved. BCG Matrix Nike operates on segments including Apparel, equipment, and footwear that it supplies mostly in Europe, U.S, Africa and Middle East, Latin America and Asia pacific (Slack and Parent, 2006). However, NIKE has a problem with child particularly in the Nike air shoe, which has not only faced difficulties in its sale but has also received several, complains from the customers. Therefore, it is important that this shoe’s quality... The research tells how Phillip Knight a business graduate from the University of Stanford Nike initiated NIKE Company in the year1962. The company started has an importation business organization that dealt with sportswear including athletic shoes from Japan to United States. Originally, NIKE was known as the Blue Ribbon Sports. Later it was named NIKE after successful growths and expansions. Currently, the company indulges in business activities encompassing of designing, product development marketing of footwear, sporting equipment, apparel, and accessory product. It is the largest footwear seller all over the world. NIKE currently sells to over 160 countries all over the world including Europe, Australia, Canada, Latin America, Asia, and United States. Some of its facilities are in Oregon, North Carolina, Tennessee, and Netherlands. It also has leased facilities that include Nike-women stores, Nike-towns, Nike factory stores, and more than 100 administrative and sales offices. NIK E brands include Bragano, Converse, Cole Haan, Hurley, g series, and Baver. NIKE should introduce more products or improve on the currently available products in order. This initiative will improve the product outlook and satisfy the emerging consumer demand. The company needs to develop more products both in sportswear and fashion wear in order to expand its markets and increase the volume of sales. It should also expand further into foreign markets both in the future and currently through aggressiveness and being the leading footwear industry.