Market Development. Product Development. Cost leadership strategy used by Nike also supports this intensive growth strategy as it allows the organization to minimize the costs and use existing infrastructure to launch new products. Considering Nike, its strategy always focused on encouraging customers to buy the products and the investors to purchase the stock. Parnell, J. The management employs strategic management components such as vision, environmental analysis, strategy creation, strategy implementation, and strategy assessment (Nike, Inc., 2009). Dess, G. G., & Davis, P. S. (1984). Training programs are designed to uphold such corporate culture that aligns with the Nike brand image for sports footwear, apparel and equipment. Nike’s secondary intensive growth strategy is market penetration. These leaders will report to Michael Spillane, who becomes President, Consumer Creation.*. Nike has set business plans through strate… Nike is successful because it has some of the best, if not the best, marketing in the world. It is noted that Nike owns 48% of the athletic footwear market in the United States. Manufacturing: As I've covered in previous posts, Nike puts a huge emphasis on low costs and high reliability… Alongside product development, the company applies the market development intensive growth strategy by investing in new technologies to penetrate new market segments, such as segments composed of bodybuilders. Nike Inc.’s generic strategy (based on Michael Porter’s model) is appropriate for its diverse product lines, ensuring competitive advantage. Malkiel most recently served as VP/GM, Specialty Categories (Golf, Tennis, NIKE SB). All Geography leaders report to Heidi O’Neill, President, Consumer and Marketplace. Mensah joined NIKE in 2013. Nike Air technology incorporated in the running shoe and with the completion of the IPO some of Nike’s major businessmen had decided to step away from the company. A strategic objective linked to market penetration is to increase Nike’s market presence by increasing the number of authorized retailers. Prior to joining NIKE, Montagne held roles in allocation, planning and merchandising at Gap Inc., Mervyn’s and Walmart. This team is responsible for directing NIKE, Inc.'s mid- and long-term strategy. 2. On the other hand, Nike’s intensive growth strategy reflects the company’s focus on innovation to develop the business. The combined cost leadership and differentiation generic strategies boost Nike’s performance in the global industry. Here's the leadership strategy Nike's CEO uses to make employees smarter. For example, Nike enters new markets in Africa and the Middle East to increase its shoe sales revenues. In this strategy, the company grows by increasing sales revenues in existing markets. Table 6.9 from the text covers when Function is Aligned/Misaligned with Cost Leadership Strategies. Strong Brand Awareness – Nike is one of the most recognizable brands in the world as its name alone is memorable, easy to pronounce, and very unique. (1997). This team is responsible for directing NIKE, Inc.'s mid- and long-term strategy. He also led the Global Kids category, and then had a leadership role in Jordan Brand, before moving into his role with APLA. The following are the generic competitive strategies implemented in Nike's combination strategy: Cost Leadership Strategy 2. * The marked paragraph contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. Currently, Uzzell serves on several boards, including the SC Johnson Company and the Greater Boston Chamber of Commerce. Here's the leadership strategy Nike's CEO uses to make employees smarter. Diversification. The generic competitive strategy of differentiation helps the company enter new markets, based on product attractiveness. Grebert joined NIKE in 1997 in Melbourne, Australia, and served in marketing leadership roles in Australia, Asia Pacific, and EMEA. * Mark Parker (AP/Rick Bowmer) Mark Parker. The cornerstone of the Triple Double Strategy is the Nike Consumer Experience (NCX), which includes Nike’s own direct-to-consumer network, as … This type of strategy includes two or more of the generic strategies from Porter's model. “Heidi and Andy’s leadership has been instrumental in both evolving and driving Nike’s strategy … Nike works to keep their supply chain and production costs as low as possible; however, that is the extent of their cost consciousness. Merchant, H. (2014). She has also served in various GM roles in NIKE’s EMEA operations, including GM, Kids and Strategic Planning Director for Western Europe. In the late 1990s, Nike reduced costs and the selling prices of its athletic shoes and other products. From 2015 through 2020, Andy served as Nike’s EVP and Chief Financial Officer, a role that also included leading the company’s strategy function. We use cookies for website functionality and to combat advertising fraud. Shana Lebowitz. ... Statistics on Nike's Leadership. Compete with yourself not your colleagues.” Nike’s leadership and top management style can be characterized by the team management approach. Malkiel previously served in various senior management roles across the company, including VP, Global Product and Merchandising Operations Analytics and VP, Product Strategy. Market Penetration. Announces Jim Scholefield As Chief Information Officer June 04, 2015 – In this role, Jim will be responsible for leading NIKE, Inc.’s technology strategy to support the company’s future growth. This style of leadership leads to relationships of trust and respect. For GDPR compliance, we do not use personally identifiable information to serve ads in the EU and the EEA. *, The leadership changes, combined with a strategic alignment of NIKE’s operating model against the CDA, will create even greater focus and agility that will be enabled by a nimbler, flatter organization in service of consumers. Prior to the APLA role she served as the North America VP/GM, Jordan Brand. Varadarajan, P., & Dillon, W. R. (1982). Nike is one company that revolves around motivation. Cost Leadership Strategy. The CDA, announced in June 2020, is a new digitally empowered phase of NIKE’s strategy to unlock long-term growth and profitability. Strategic management is a technique that Nike, Inc. has been able to apply to determine how it is performing in its current position and how its future should be. This type of strategy includes two or more of the generic strategies from Porter’s model. panmore.com/nike-inc-generic-strategy-intensive-growth-strategies A strategic financial objective based on this intensive growth strategy is to improve Nike’s financial risk by entering other industries. This intensive strategy involves the introduction of new products to grow sales revenues. However, market penetration is just a secondary intensive growth strategy because the company already has significant presence in the global market. Nike’s Strengths – Internal Strategic Factors. Click here to read the full article. Also, Nike’s differentiation generic strategy provides unique products. Ann Hebert and Angela Dong will remain the VP/GMs, North America and Greater China geographies, respectively. Like most companies, Nike inspires and influences employees to take challenges. It reflects employee voices, is These risks and uncertainties are detailed from time to time in reports filed by NIKE with the Securities and Exchange Commission (SEC), including Forms 8-K, 10-Q and 10-K. In product development, these products remain attractive despite changing consumer preferences. Nike Marketing Strategy 7428 Words | 30 Pages. Dowers has played a key role in elevating and evolving many strategic wholesale partnerships in the U.S. and globally. The CDA will create a more premium, consistent and seamless consumer experience across NIKE’s owned and strategic partner ecosystem, align around a new simpler consumer construct and also unify investments in an end-to-end technology foundation to accelerate our digital transformation. To drive this focus, NIKE will streamline its organization, including its Corporate Leadership Team (CLT). He then served in General Management roles of increasing responsibility in Northern Europe, Germany and Japan. Its swoosh symbol is easily recognized by everyone. Pricing strategy: Nike has value based/price leadership strategy that offers the customer with the price that customer value so it has high prices for its products as it has niche market to serve with Read full article. New evidence in the generic strategy and business performance debate: A research note. Nike has an organizational culture that encourages human resources to behave in ways that address business objectives. Nike, Inc. This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s. See our Privacy Policy page to find out more about cookies or to switch them off. Nike Success. Nike did not say when Hill and Sprunk will depart the company. Leadership Defined — NIKE, Inc.’s leadership framework — gives us a common set of behaviors to achieve this, together. Description of marketing strategies applied by Nike Air Force 4.1 Challenges Forcing Nike to Focus More on Marketing Sportswear is defined primarily as apparel and footwear made for sports participation, though is now also includes casual clothes worn by people for daily activities (E. Ko, C. R. Taylor, et al., 2012). Configurations of governance structure, generic strategy, and firm size. They believe each employee holds great potential. In the NIKE Brand’s geographic operating segments, NIKE announced new leaders in Europe, Middle East and Africa (EMEA) and in Asia Pacific and Latin America (APLA). Nike has captured approx. Uzzell is also a member of the Executive Leadership Council and the Florida A&M University Foundation Board. Carl Grebert, VP/GM, EMEA, is a 23-year NIKE veteran most recently serving as VP/GM, APLA. Craig A. Williams, President, Jordan Brand, joined NIKE, Inc. in January 2019 from The Coca-Cola Co., where he most recently served as SVP, The Coca-Cola Co., and President of The McDonald’s Division (TMD) Worldwide and was responsible for growing brands and beverages categories. Nike is famous for taking a leadership position on the field and in the marketplace. Organizational Structure Characteristics (Analysis), Nike Inc. Five Forces Analysis (Porter’s Model), Nike Inc. Amy Montagne, VP/GM, Men’s, is a 15-year NIKE veteran, most recently leading the entire global category portfolio as VP/GM, Global Categories. The following are the generic competitive strategies implemented in Nike's combination strategy: Cost Leadership Strategy 2. A suitable strategic financial objective based on this intensive growth strategy is to increase Nike’s market share through cutting-edge technologies integrated in the design of sports shoes, apparel and equipment. Organizational Culture Characteristics: An Analysis, Nike Inc. SWOT Analysis & Recommendations, Nike Inc. Operations Management: 10 Decisions, Productivity, Nike Inc.’s Marketing Mix (4Ps/Product, Place, Promotion, Price) - An Analysis, Nike Inc. 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Diversification can support Nike’s generic competitive strategy of differentiation through new businesses that supply materials for product innovation in the athletic shoes, apparel and equipment business. Operational model changes to fully align against the CDA are expected to lead to a net loss of jobs across the company, resulting in pre-tax one-time employee termination costs of approximately $200 million to $250 million.*. McCallester Dowers becomes VP/GM, Kids. This has greatly helped the managers to lay a plan for the organization and take it where they want it to be. This strategy involves developing new businesses to achieve growth. This generic competitive strategy helped the company regain its competitiveness, especially against Adidas. Employees are the biggest asset of a firm; without its employees, a firm can never prosper and without skillful employees, the firm will go bankrupt within years. Results of Nike's new Customer Experience distribution strategy in place for over a year in a study by Euromonitor. A generic strategy, according to Michael Porter, defines how a business achieves and maintains its competitiveness. Nike Inc.’s generic strategy for competitive advantage emphasizes product mix diversity. Nike is making changes to its senior leadership team and expects employee layoffs as part of its new digital-focused business strategy. With the strategy, Nike intends to ramp up investments in e-commerce and technology, as well as simplify its “consumer construct” of men’s, women’s and kids’ businesses. Whitney Malkiel, VP/GM, Women’s, is a 17-year NIKE veteran. Initially, the Nike brand was on athletic shoes only. 2015-11-14T15:30:00Z The letter F. An envelope. This strategy facilitates the company’s growth by targeting new markets or market segments. For example, Nike increases its stores and retailers in the United States to sell more athletic shoes to American consumers. In spite of this, the production of Nike suffered because of its poor labor law and less focus on the workers conditions (Nike Dispute, 2008). Nike has a moderate cost leadership strategy within its industry. Previously she has held the roles of VP/GM, Global Women’s, VP/GM, Global Merchandising and also held positions of increasing responsibility in North America, Running, Women’s Training and Sportswear. The cost leadership generic competitive strategy empowers Nike to penetrate markets based on product affordability. Nike implemented this intensive strategy in its early years, such as when it introduced apparel and sports equipment to its product mix. Dowers is a 24-year NIKE veteran, serving in various North America leadership roles, including VP/GM, Sportswear and VP, Retail Brand, North America. Intensive growth strategies: A closer examination. New technologies enhance the products and set them apart from the competition. To enhance corporate leadership, Nike has established Strategic Leadership Team, chaired by CEO Mark Parker. As it forges ahead with its new digital-focused business strategy, Nike Inc. is making a series of leadership changes. Executive Summary: Constant innovation has been the byword for Nike's success.This case study analyses the ever-evolving marketing strategies adopted by Nike to become a … Prior to joining Nike in 2007, Andy held leadership roles in strategic planning, mergers and acquisitions, financial planning and analysis, operations planning, investor relations, and tax at The Walt Disney Company. Business Level Strategy: Nike's Generic Strategy (Porter's Model)Nike Inc. uses a combination strategy for its competitive advantage. The sportswear giant announced today that, aligning with its … Aligning against the new consumer construct, Amy Montagne becomes VP/GM, Men’s. We regularly review supplier factories to assess their ability to meet our high standards. Prior to NIKE, Grebert worked in marketing and finance roles for Unilever and The Coca-Cola Co. Sarah Mensah, VP/GM APLA, most recently served as VP/GM, Sportswear in APLA. Phil Knight even decided to take a break in the 83-84 year, although he was still chairman and CEO. In conjunction with Denson's decision to retire, the Company also announced strategic changes in its executive management team as part of the Company's long-term organizational strategy to align the business to continue to drive growth. Miller, D. (1992). Prior to NIKE, Mensah worked for 19 years for the NBA’s Portland Trail Blazers where she served as SVP and Chief Operating Officer. NIKE, Inc. (NYSE: NKE) announced today that Charlie Denson, NIKE Brand President since 2006 and a 34-year veteran of the brand, will retire in January 2014. But what it’s just done for the entire apparel industry is both surprising and enlightening. Carl Grebert becomes VP/GM, EMEA, succeeding Bert Hoyt, who will retire from NIKE later in 2020 after 22 years with the company. Nike Inc.’s Mission Statement & Vision Statement (An Analysis), Nike Inc. Although the brand is big on positivity, Nike motivates employees as well. The company has a compilation of motivational slogans to get people going. One of Nike’s supporting intensive growth strategies is market development. 31% of the global athletic footwear market. Copyright by Panmore Institute - All rights reserved. The leadership changes, combined with a strategic alignment of NIKE’s operating model against the CDA, will create even greater focus and agility that will be enabled by a nimbler, flatter organization in service of consumers. Prior to joining NIKE, Dowers had over a decade of experience in the North America retail industry. 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