Running Head: NIKE 1 NIKE 6 Week 6 Assignment 2 Ebony Reid Strayer University BUS 499 Business Administration Capstone Dr. Grizzel Dr. Gardner August 18, 2019 Found in the year 1954, Nike is an American multination company that specializes in the manufacture of athletic equipment, accessories, athletic wear, apparel, and providing footwear. The key goal of the company is to supply wearable and exceptional products that come in handy in enhancing better performance in sports (1). This paper will discuss the industry in which Nike operates in based the strategies it can use to build on its strengths and opportunities and those it can use to deal with the threats and weaknesses. Five forces of competition The two segments of the general environment that would rank highest in their influence on Nike are threats of new entrants and the level of competitive rivalry. Threat of new entrants In case new firms come in the market, they are likely to disrupt the industry environment of Nike, especially due to the company high pricing strategy. With the current technological advancement, it is likely that new companies will be looking to venture in the apparel, sports shoes, and equipment market as a way of making profits (1). Most of these companies may decide to sell their products at a lower price, thus leaving customers with a favorable choice compare to how Nike sells its products. With the U.S. facing hard times in how it deals with other countries politically, other companies may jump in and take advantage. For instance, following the U.S. sanctions on Iran, Nike lost the chance of producing equipment for the Iranian football team, which was a huge deal (2). Level of competitive rivalry The company faces tough competition from different brands, especially from Adidas and Reebok. Both of these companies deal with similar goods like Nike, although they have different customers from different parts of the globe (1). In the sports industry, the level of competition is strong. Furthermore, the industry has grown with the current players engaging in tough competition and seek to snatch away the market share from each other. Evaluation In the recent past, Nike has successfully been able to deal with the two threats successfully, although much need to be done to deal with them completely. To address these forces, the company has engaged in extensive research and development, whereby it creates more unique products that aid in maintaining its brand image. The company keeps improving its product every year to ensure that it does not lag behind its competitors. Furthermore, Nike has continually engaged in social media marketing, which has worked on its favor, given that their products are well known to their customers (1). For instance, the company recently engaged in the 'Just Do It' campaign where different customers posted their photos with the caption and helping the company to increase its popularity among the consumers. Future improvements T ...

1. Running Head: NIKE 1
NIKE 6
Week 6 Assignment 2
Ebony Reid
Strayer University
BUS 499 Business Administration Capstone
Dr. Grizzel
Dr. Gardner
August 18, 2019
Found in the year 1954, Nike is an American multination
company that specializes in the manufacture of athletic
equipment, accessories, athletic wear, apparel, and providing
footwear. The key goal of the company is to supply wearable
and exceptional products that come in handy in enhancing better
performance in sports (1). This paper will discuss the industry
in which Nike operates in based the strategies it can use to build
on its strengths and opportunities and those it can use to deal
with the threats and weaknesses.
Five forces of competition
The two segments of the general environment that would rank
highest in their influence on Nike are threats of new entrants
and the level of competitive rivalry.
Threat of new entrants
In case new firms come in the market, they are likely to disrupt
the industry environment of Nike, especially due to the
company high pricing strategy. With the current technological
advancement, it is likely that new companies will be looking to

2. venture in the apparel, sports shoes, and equipment market as a
way of making profits (1). Most of these companies may decide
to sell their products at a lower price, thus leaving customers
with a favorable choice compare to how Nike sells its products.
With the U.S. facing hard times in how it deals with other
countries politically, other companies may jump in and take
advantage. For instance, following the U.S. sanctions on Iran,
Nike lost the chance of producing equipment for the Iranian
football team, which was a huge deal (2).
Level of competitive rivalry
The company faces tough competition from different brands,
especially from Adidas and Reebok. Both of these companies
deal with similar goods like Nike, although they have different
customers from different parts of the globe (1). In the sports
industry, the level of competition is strong. Furthermore, the
industry has grown with the current players engaging in tough
competition and seek to snatch away the market share from each
other.
Evaluation
In the recent past, Nike has successfully been able to deal with
the two threats successfully, although much need to be done to
deal with them completely. To address these forces, the
company has engaged in extensive research and development,
whereby it creates more unique products that aid in maintaining
its brand image. The company keeps improving its product
every year to ensure that it does not lag behind its competitors.
Furthermore, Nike has continually engaged in social media
marketing, which has worked on its favor, given that their
products are well known to their customers (1). For instance,
the company recently engaged in the 'Just Do It' campaign
where different customers posted their photos with the caption
and helping the company to increase its popularity among the
consumers.
Future improvements
To address these forces in the future, Nike needs to ensure that

3. they continue with innovative plans which ensure that its
products are top notch and can compete in the increasingly
competitive markets. Furthermore, the company should ensure
that it takes its operations reaches untapped markets such as
those in Africa and Asia so as to enhance its sales (2). In most
cases, the company is likely to experience less pressure in the
less competitive market despite the fact that there may be fewer
returns available. Overseas markets will help in increasing the
number of sales made, which will consequently increase the
company’s profits.
External threat and opportunities
The key threat facing Nike today is increased competition from
both existing and upcoming companies. The company operates
in a highly competitive market, which means that it has to keep
up with what the other players are doing for it to continue
succeeding in the market. Particularly, the company faces
competition from Adidas and Puma, especially in the sale of
apparel, athletic footwear, and equipment (2). Despite its global
presence, the main opportunity that Nike should take advantage
of is the emerging markets. There are emerging markets,
especially in the rapidly growing economies such as China,
Brazil, and India. Such markets have the potential of driving
future earnings growth for the company.
Threats and Opportunities Strategies
To deal with the threats of incoming competition, the company
must ensure that it diversifies its operation to deal with more
than one equipment or service and to ensure that customers
continue to depend on it as much as possible. With more
diversification, more customer can depend on Nike as they go to
store, especially when dealing with athletic equipment, which
will make the brand stronger in terms of who it attracts (2). It is
important that Nike engages in aggressive marketing to attract
more customers and increase the demand for its products across
the globe. By increasing sales in these markets, Nike can be
able to improve its brand image and deal with the increased
competition from rival companies (2). By realigning its product

4. portfolio, Nike can appeal to customers in the emerging markets
and increase their share of the market and continue increasing
its customer base in the next few years.
Strength and weaknesses
Nike’s greatest strength is the company’s huge customer base
whereby the company has millions of customers across the
globe who loyally follow its trends and take part in its events.
Based on the huge customer base, Nike has successfully reached
a huge market making over $115.19 in terms of sales as of 2018
(1). Another strength of Nike is the fact that it has a global
presence with approximately 1100 stores and factories across
the globe, which means that it is able to serve its customers
with absolute niche and convenience. Based on its global
presence, the company has risen to become one of the most
recognized brands in the world, which means that it is an easy
choice for its customers (1). Nike has an iconic relationship and
partnership with Michael Jordan, thus ensuring that its products
are widely acknowledged and loved by customers all over the
world.
On the other hand, Nike's biggest weakness is its over-reliance
on the U.S. market despite the fact that it is already established
globally. The company depends on the U.S. market in terms of
revenue and sales, with over 42 percent of its sales coming from
the U.S. market (1). Such dependence can be catastrophic in
case the U.S. market end up collapsing. Another weakness is the
poor labor conditions offered by the company especially in
foreign countries including low wages, unsafe working
conditions, and child labors thus putting it in the spotlight for
the wrong reasons (3). The company also has pending debts
despite its prosperous income statement, which means that the
company may end up facing financial threats in the future.
Lastly, given that Nike retailers hold about 60-70 percent of its
stock, it is clear that they have a stronger hold on the company
pricing thus leaving the company with a weak stance to its
sensitivity against pricing (1).
Strategy

5. To maximize to its strengths, Nike can engage in more
collaborations with well-known brands so as to provide a wider
range of products to its customers and to ensure that the
customers are fully satisfied with the products. As seen with its
collaboration with Jordan, Nike has a potential of increasing its
sales in case its large customer base access more improved
products. With new and improved products in the market, the
company can make more sales and ultimately more profits. On
the other hand, to fix its most significant weaknesses, Nike
should first ensure that its operations in different parts of the
globe adhere to the rules and regulation of the land so as to
correct the notion that the company has poor labor conditions
(3). Such a bad image may limit the company's success in the
market, given that some potential customers may decide to
disregard their association with it. Furthermore, it should
extend its operations in other countries across the globe to
lower its over-reliance on the U.S. market by engaging in social
media marketing and opening stores in other parts of the world.
By improving its status in other parts of the world, Nike can
ensure continued operation and profits even if the U.S. market
collapse or experience a recess.
Resources, Capabilities and core competencies
Nike has both tangible and intangible resources that play a key
role in its operation and success. The tangible assets mostly fall
under physical assets, financial assets, organizational and
technological resources. The physical assets include land,
research centers, equipment, distribution facilities, machinery,
and buildings. Financial assets mostly entail the company’s
strong financial position, which has continued to experience
constant growth (1). Technological resources are mostly patents
and trades, while the organizational resources are the loyal
customer base as well as the company’s distribution network.
On the other hand, some of the company’s intangible assets
include human resources, reputation resources, and innovation
resources. The human resource entails approximately 55,000
employees across the globe as well as the powerful research

6. team that gives the company a strong base for operation (2).
Innovation resources include knowledge transfer, dynamic
technological innovation design as well as an online website
while the reputation resource includes logos, brand name, and
distinctive trademarks. Nike’s core competencies entail its
effective marketing strategy as well as the company’s
innovative product design. Both of these elements ensure that
the company has value and benefits to the customers and that
the products are hard to imitate (1). On the other hand, Nike’s
core capabilities entail its creative and innovative product
design and the fact that the company focuses on its corporate
values on innovation and technology.
Sources
1. Pandey, B. C. (2017). Nike Inc-Complete Analysis: SWOT,
PESTLE, and Marketing strategy. BookRix.
2. Li, M., MacIntosh, E. W., & Bravo, G. A. (2012).
International sport management. Champaign, IL: Human
Kinetics.
3. Rothaermel, F. T. (2013). Strategic management: concepts.
New York, NY: McGraw-Hill Irwin.

7. Week 8 Assignment 3
Ebony Reid
Strayer University
BUS499 Business Administration Capstone
Dr. Grizzell, Dr. Gardner
August 25, 2019
Introduction
By deciding on the business or corporate level strategy to settle
on, a company makes an excellent decision given that it can set
the tone for its success. In most cases, companies hire a
manager to determine the strategy that suits their company best
while there are companies who seek to improve their operations.
Furthermore, it is vital that the company knows the competition
in place as it settles for a strategy to ensure that it equips itself
in a manner that will trigger success (1). Based on what the
competitors are doing, it is easy to figure out the strategies that
fit best for a corporation. After figuring out the strategy to set
on, the company can move on to build a successful future and
survive in the market for a long time.
Business level strategies
Having a well-structured business-level strategy play a vital
role for any corporation and is critical since to keep an
organization flowing successfully. Nike has settled on a direct

8. business strategy and has precise objectives that it seeks to
achieve. Innovation is key is how Nike is run as the company
ensure that its products are up to date to ensure that the
company is more sustainable. The company understands how the
constrained natural and human resources in the world today
affects its operation and has decided to do something about it by
ensuring that it fully engage in innovation (2). Nike understands
that the competition cost when it comes to resources will go up
as the funds continue diminishing and have therefore coupled its
operation with emerging trends where it seeks to push to be near
different markets while also changing labor markets as a way of
creating business growth for the future (1).
Nike has settled on differentiation business-level strategy via
product innovation, as well as technology development. The
company has been able to differentiate itself from its
competitors and has successfully built a sharp brand image
which helps it to transform its fortunes. Nike has unique
features of products and ensures that the products undergo rapid
innovation (2). I believe that differentiation is the most
important business level strategy for the company and it is a
right choice since Nike's customers are ready to pay for the
higher-end prices charged by the company for its goods since
they see value and uniqueness in the products. The company
ensures that its customers anticipate the arrival of new products
and available to test them because they are unique and way
above other products in the market today. Furthermore, through
increased focus on a differentiation strategy, Nike has continued
to invest in research and development to always have an edge
compared to their competition (2). The company can patent
most of its products and materials, aiding them to come up with
the sustainable competitive advantage that they seek to achieve.
Corporate-level strategies
The corporate level strategy entails ensuring that a company
makes the best choices given that they directly affect the
company. A company needs to settle on a specific corporate-
level strategy to implement in its operation, which will be

9. essential for its success. Nike's corporate strategy mostly entail
the products' diversification. Nike's products represent
moderate-high diversification, which shows that over 50 percent
of its revenue comes from key business fields (3).
Furthermore, every business is operating under Nike share
product, distribution, and technological connection. In addition
to the diversification of products, the company has also engaged
in supply chain and manufacturing diversification. The company
is highly dependent on strategic outsourcing with almost all
footwear produced outside the U.S (3). Nike has independent
contractors in nearly 35 countries with over 99 percent of the
supply coming from companies based in different countries,
including China, Indonesia, Thailand, and Vietnam. With such
manufacturing strategies, the company for a long time gotten
best deals at a reduced risk.
For Nike, the primary product that yields the most significant
income share in apparel and shoes. When dealing with minor
products, Nike employs similar resources, distribution channels,
and technology, while their key product emphasis is athletic
footwear mostly designed for leisure and sport uses. The
company needs to pay close attention to supply and
manufacturing chain diversification mainly due to the recent
global economic crisis as well as uncertainties which have
increased the need for diversification to lower risks and ensure
that there are better deals avails. Supplier diversification is also
key for the company to ensure its success, especially on a
global scale. By creating a broad base of suppliers, Nike can be
able to come up with the revenues it is aiming to achieve. Nike
still has both traditional and non-traditional distribution
channels in its primary markets in the U.S., Europe, the
Americas, and Asia Pacific (3). Nike utilizes close to 20,000
retailers, factory stores as well as internet-based Web sites to
sell its leisure and sports products. As described in the
company's annual rapport, the key product focus for Nike is
athletic footwear made for specific sports use. The company is
also involved in the selling of athletic apparel, which carries the

10. same trademarks as most of their footwear lines. In addition to
these components, the company also sells different equipment
under its brand name that includes bats, eyewear, skates,
timepieces, and other equipment meant for sports events.
Moreover, the company utilizes several wholly-owned affiliates
to sell other merchandise such as Nike Team Sports and Nike
IHM Inc. with a more extensive supplier base, Nike has
successfully created a strong presence in all the markets where
it functions as well as a recognizable brand name thus
increasing its credibility (3).
Competitive environment
A company must come up with the best innovative ideas to
design products, thus helping it remain competitive in the
industry for the longest time possible. Having been in operation
for over 50 years, Nike has come up with different strategies
that enable it to remain successful in the highly competitive
apparel business environment (4). The company has to deal with
old companies that are already in the industry as well as new
that might threaten its operations in the industry. Nike is among
the main companies in the Industry with Adidas and Under
Armor as its main competitors based on the number of sales and
the control of the market at the moment.
Formerly referred to as Dassler Brother Shoes, Adidas is a
manufacturer, marketer, and design of accessories, shoes, and
clothing as well as a critical competition to Nike over the years.
The company acquired Reebok in 2005 for 3.8 billion dollars
after which it posed a great chance of competing with Nike,
especially in North America. Today, Adidas group is made up of
three subsidiaries, which are TaylorMade, Reebok, and
Runtastic (4). Currently, Adidas value is $14.3 billion with its
revenue amounting to 21.218 billion. Due to its innovative ideas
as well as product diversification, Adidas has remained as the
key challenges and competitor to Nike which has, in turn,
forced both companies to continue developing their products to
ensure that they have a competitive edge in the current market.

11. Another critical competitor to Nike is Under Armour. Founded
by Kevin Plank in 1996, the company manufactures sports
footwear, apparels, and casual clothing while it is also engaged
in developing, marketing and distributing different product lines
across the globe. The company's products are used by all levels
of professional players and college and also general customers
who are attracted to active lifestyles. Under Armour made $5
billion revenue as well as a market capitalization of $7.7 billion
(4). Both Under Armour and Adidas have gained progressive
ground over Nike in the last few years while Nike earning per
share growth has remained stuck, thus indicating slow-moving
of merchandise at Nike.
All in all, due to its increasingly good laid down revenue
sources, the annual company revenues are still ahead of Adidas
and Under Armour. At Under Armour, competition and growth
are interconnected while just like Nike, innovation is key, thus
ensuring that the company remains competitive in the current
market (4). The three companies seek to stay one step ahead of
each other and to gain market share in the process and are
always striving to better themselves in every way possible to
stay ahead of the competition.
Market cycles
I believe that my choice in the above question would remain the
same, whether in fast cycle or slow cycle market. Slow cycle
markets can describe those in which the competitive advantages
of the company are shielded from imitation over long periods,
especially where reproduction is expensive. Fast cycle, on the
other hand, entails changing the rates of competitive speed in
different markets based on the responses and actions of the
competitors in a particular market. As long as Nike continues to
focus on creating high-end products that are highly innovative
and eye-catching to the customers, it will remain competitive in
its environment (4). The company will continue producing new
and improved products to keep up with its competitors as well
as focus on what the customers want to ensure that their
products are consistent and quality. Customers choose Nike's

12. products since it is what they want, especially since the
products are entirely unique compared to what the other
competitors are currently offering. By releasing high quality
and diversified products, it is easy for Nike to remain
competitive and remain at the forefront compared to other
companies.
Sources
1. Hill, C. W., & Jones, G. R. (2011). Essentials of strategic
management. Nelson Education.
2. Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016).
Strategic management: Concepts and Cases: Competitiveness
and globalization. Cengage Learning.
3. Furrer, O. (2010). Corporate level strategy: Theory and
applications. Routledge.
4. Mahdi, H. A. A., Abbas, M., Mazar, T. I., & George, S.
(2015). A Comparative Analysis of Strategies and Business
Models of Nike, Inc. and Adidas Group with special reference
to Competitive Advantage in the context of a Dynamic and
Competitive Environment. International Journal of Business
Management and Economic Research, 6(3), 167-177.
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1
BUS499 Capstone
Assignment 4
Insert Student’s Name Here

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Insert Firm’s Name Here
Impacts on
Impact of Company’s Mission on Success
insert a bullet or two describing the mission’s impact to overall
competitive success
Impact of Company’s Vision on Success
insert a bullet or two describing the vision’s impact to overall
competitive success
Impact of Stakeholders on Success
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15. slide
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as a competitive employer in the industry.
3
SWOT Strategy
Strength: Insert strength here
Insert a bullet describing the strategy to capitalize on the
strength
Insert another bullet describing the strategy to capitalize on the
strength
Opportunity: Insert opportunity here
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opportunities
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opportunities
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4

16. SWOT Strategy
Weakness: Insert weakness here
Insert a bullet describing the strategy to minimize weaknesses
Insert another bullet describing the strategy to minimize
weaknesses
Threat: Insert threat here
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5
Competitiveness Strategy
Business-Level Competitiveness Strategies
1st bullet point of business-level strategy to maximize
competitiveness
2nd bullet point of business-level strategy maximize
competitiveness
Corporate-Level Competitiveness Strategies
1st bullet point of corporate-level strategies to maximize
competitiveness
2nd bullet point of corporate-level strategies to maximize

17. competitiveness
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6
Profitability Strategy
Business-Level Profitability Strategies
1st bullet point of business-level strategy to maximize
profitability
2nd bullet point of business-level strategy maximize
profitability
Corporate-Level Profitability Strategies
1st bullet point of corporate-level strategies to maximize
profitability
2nd bullet point of corporate-level strategies to maximize
profitability

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7
Communications Plan
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strategies to stakeholders
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Communications Plan

19. Communicate Profitability Strategies by:
1st bullet point on the plan to communicate the profitability
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strategies to stakeholders
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Corporate Social Responsibility
Responsible (ethical) corporate citizen
1st bullet point on the assessment of efforts by the corporation
to be a responsible (ethical) corporate citizen – specific
example
2nd bullet point on the assessment of efforts by the corporation
to be a responsible (ethical) corporate citizen – specific
example
Impact of efforts on company’s bottom line
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bottom line – specific example
2nd bullet point on the impact the efforts have on the
company’s bottom line – specific example

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10
References
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic
management: Concepts and cases: Competiveness and
globalization (10th ed.). Mason, OH: South-Western Cengage
Learning.
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11