Ch. 2 - Strategic Planning for Competitive Advantage

NIKE's Strategic Plan and Competitive Advantage

Nike, Inc. is a company rooted in competition. From equipping athletes with the finest sports equipment in the world to continuously improving our own financial performance, Nike dominates its competitors. Phil Knight and Bill Bowerman probably could not have imagined in 1962 to what degree their $500 investments would yield in 2000. They did know that product quality and innovation would help athletes to achieve greater goals. Nike still operates on this philosophy today. It is one that has helped athletes and stakeholders alike to realize athletic and financial greatness. Despite a changing marketplace for athletic footwear, we will continue to expand our product lines and marketing reach to become a more powerful global brand.

Nike is a global brand. It is the number one sports brand in the World. Its famous 'Swoosh' is instantly recognizable.

Nike mission is to be a company that surpasses all others in the athletic industry. Nike will maintain there position by providing quality footwear, apparel and equipment to institutions and individual consumers of all ages and lifestyles. They pledge to make there products easy available worldwide through the use of retail outlets, mail order and there company web site. i.e www.nike.com.

Nike’s management believes that their success lies in the hands of their teammates, customers, shareholders and the communities in which they operate. They vow to keep this in mind with the execution of every decision within there company.

Nike will focus its commitment to all stakeholders by continuing to make strides towards being a company that sets the precedents in social responsibility. Nike is continuously making efforts to ensure that all employees and members of its surrounding communities are treated in a manner that is inline with our mission. Nike has made many alliances with human rights organizations in an attempt to ensure labor rights for employees of the industry overseas. They are committed to treating their employees with the a lot of respect, which is reflected in there compensation and human resource policies. They are also committed to making good decisions in regards to their environment, resources, and the fight against pollution.

At Nike, there vision is to remain the leader in there industry. They will continue to produce the quality products that they have provided in the past. Most importantly, They will continue to meet the ever-changing needs of their customers, through product innovation.

Nike is a very competitive organization. Phil Knight (Founder and CEO) is often quoted as saying that 'Business is war without bullets.' Nike has a healthy dislike of is competitors. At the Atlanta Olympics, Reebok went to the expense of sponsoring the games. Nike did not. However Nike sponsored the top athletes and gained valuable coverage.

Nike has no factories. It does not tie up cash in buildings and manufacturing workers. This makes a very lean organization. Nike is strong at research and development, as is evidenced by its evolving and innovative product range. They then manufacture wherever they can produce high quality product at the lowest possible price. If prices rise, and products can be made more cheaply elsewhere (to the same or better specification), Nike will move production.