Nike's Strategic Management Tools

However, the company must now faces challenges which did not exist in this industry only a few years ago. The recent upheaval in financial markets in Asia (one of Nike's primary markets) has brought into question the company's ability to continue its global expansion plans. In addition, there is currently a worldwide glut of shoes, causing price and profit pressure throughout the industry. This research considers Nike's strategic position in light of various tools used in strategic management, including traditional competitive analysis, strengths and weaknesses, and financial analysis.

The company was begun in 1964 as Blue Ribbon Sports; the name was changed to Nike in 1978. It began as a partnership between an MBA candidate and a former track coach who had manufactured running shoes in his spare time. The company built its reputation on its technological breakthroughs in athletic shoes, and helped to introduce speciali

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ovator within the sports shoe market. This is reinforced by using professional athletes as spokespeople, and by having professional athletes wear Nike shoes in competition (Dukesherer, 1996, p. 3). Weaknesses During the mid-1990, Nike outpaced its closest American rival in sales, and continued to expand its international presence across product lines, and its domestic presence in the apparel market. While there is the risk that the entry into apparel may spread Nike's resources too thin, this has not been the case to this point. Downturns in the market suggest that Nike may encounter lackluster growth until it exhausts its surplus inventory, a factor which may be expected to affect growth in coming years (Carini, 1998, p. 1681M). Like other companies in the industry, Nike uses contractors, primarily located in the Far East, to manufacture its goods. Some countries have strict tariffs and quotas with regard to American shoes, and some legislators have sought similar, retaliatory measures against products manufactured in these countries. Even though Nike is an American company, its shoes are produced in the Far East and it may fall victim to higher quotas and tariffs when it imports shoes. There is also increased tension in
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Approximate Word count = 2777
Approximate Pages = 11 (250 words per page)

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