1.

0 INTRODUCTION
(http://www.nikebiz.com/crreport/content/strategy/2-1-1-corporate-responsibility-strategyoverview.php?cat=cr-strategy accessed 12 Feb. 2016).Nike was founded in 1964 and officially
named as Nike Inc. in 1971. Nike is the market leader in sporting goods industry which
comprises establishments primarily engaged in manufacturing sporting and athletic goods which
included clothing, footwear and other apparels. It shows that Nikes revenue is growing
apparently.(see Appendix 1) According to different manufacturing process types, (see Appendix
2) Nike is focusing in batch processes where there are variety of product ranges. Besides, it
employs many specialists including engineers, athletes, biomechanics and industrial designers to
work together in the design process. And, it is normally slow yet costly for R&D.
2.0 PERSPECTIVE OF OPERATIONS STARTEGY
2.1 Top-Down Perspectives
In order to position itself in its global, economic, political and social environment, Nike is
employing top-down strategies where it consists of three different levels of strategies: corporate,
business and functional. Nike's corporate level strategy includes a moderate level of
diversification. The operational relatedness between businesses is very high. They share most
information and technology needed to succeed. In order to distinguish its brand and increase
customer loyalty, Nike uses differentiation business level strategy. It offers high quality goods
and acceptable price. Nike is perceived as something fancy, in terms of sport goods
manufacturer. According to Nike Annual Report, the company will maintain high quality and
acceptable price as major strategy for growth.

Nikes organizational structure is divisional but it has functional departments. Converse and
Jordan brands are examples of divisions created around specific products while Nike design is a
functional department. Each department has sub departments, responsible for handling particular
tasks.
2.2 Product Life Cycle

Sporting goods industry is a mature industry with some strong brand names like Nike, Adidas
and Under Armour. Many main players started to get into consolidation phase. Larger companies
are strategically acquiring smaller companies like Reebok by Adidas and Converse by Nike.
(https://prezi.com/vzbhpu5v6ej3/life-cycle-of-a-nike-shoe/ accessed 11 Feb. 2016) .Nike is in
the stage at which the efficiency of dominant business model provides the company competitive
advantage over the competition due to its strong product awareness, high barrier of entry, high
quality of product and successful marketing strategy.
Nike is in the maturity stage of its product life cycle. As such Nike has shifted from short-term
goals such as establishing a brand name and building infrastructure to long terms goals like
maintaining market share and increasing the value of stock.

(http://www.nikeresponsibility.com/report/uploads/files/Product_LCA_Method.pdf
accessed 11 Feb. 2016).As a 50-year company, Nike has firmly established itself as a mainstay
in the sporting goods industry, and in many ways, set the standard for the industry. Hence, Nikes
strategic goals are now focused on further increasing dominance in the industry while
diversifying its portfolio of subsidiaries. This reinforces the goal of not allowing the competition
to come in and take Nikes share of the market. This maturity and steady footing in the market has
allowed them to experiment in related diversification. For example, Cole Haan, is bringing Nike
into the luxury footwear market. Nike needs to ensure that they stay true to their goals and values
of pushing the limits of technology and innovation, otherwise they run the risk of falling into the
decline stage.
Main competitors of Nike are Adidas and UnderArmour. (see appendix 3) The permanent
passion for innovation, to give athletes the best products to support their ambitions, has turned
Adidas into a global powerhouse, making them one of the worlds most widely recognized brand
symbols, the three stripes of Adidas. Besides sports footwear, Adidas also produces other
products such as bags, shirts, watches, eyewear and other sports and clothing-related goods. The
brand attitude of All In or Nothing encapsulates the vision and goal of Adidas in taking over
Nikes position as a market leader.
Under Armour, Inc. is an American sports clothing and accessories company. It began offering
footwear in 2006. Under Armour's mission is to provide the world with technically advanced
products engineered with their superior fabric construction, exclusive moisture management, and
proven innovation. Every Under Armour product is doing something for you; it's making you
better." Recently, Under Armour has been experiencing rapid growth in global market and has
been one of the Nikes main competitor.
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2.3 Operations Resources Perspectives

Nike falls into the category of related constrained, since less than seventy percent of revenue
comes from a dominant business and all businesses share product, technological and distribution
linkages. Hence, Nike's diversification is related because the firm builds upon or extends its core
competency and resources or capabilities to create value. Also, economies of scope are
incorporated. For example, Cole Haan line of luxury footwear and Bauer hockey utilize cost
savings from capabilities and competencies that were developed in one of its businesses, Nike,
and used in the others. Nike expects activity sharing among units to result in increased strategic
competitiveness and improved financial returns, which it has seen.
Intangible resources are difficult to understand yet maintain. To increase customer loyalty, Nike
offers high quality goods and acceptable price. It manufactures sports goods and accessories for
three different demographics which are men, women and children. Each segment is carefully
examined in terms of physical capabilities, sociological needs, and design preference. Besides,
Nike also constantly looks what could be added to current product range to increase customer
satisfaction and strengthen the links between company and client. Nike also has agreements for
licensees to produce and sell Nike brand items aside from athletic footwear and apparel. Using
such strategy Nike is able to increase firms access and connection to customers. According to
Nike Annual Report, the company will maintain high quality and acceptable price as major
strategy for growth. Furthermore, Nike invested money in R&D to keep up with new demands
both design and functioning aspects. Nike has collaborated with Apple and is launching new
apparel and footwear that will easily carry the consumers iPod. Besides, Nike employs many
specialists including engineers, athletes, biomechanics and industrial designers to work together
in the design process.
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