Running Head: BUSINESS LEVEL AND CORPORATE STRATGIES 1

Business-Level and Corporate-Level Strategies

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Business-Level and Corporate-Level Strategies

The General Environment

Nike Inc. is the leading sports apparel in the global market. Its continuous rise since

inception has seen the company overtake other giants like Adidas. The two segments that are

likely to affect its operations are social and political forces. Politically, governments shape the

way companies operate in different jurisdictions. It has to be compliant with the expectations of

every country for it to survive. This consideration is essential since it shapes the way the

company will carry itself in different environments as dictated by the political forces at play.

Socially, the company has to meet the social expectations of the people in different social

setups. The social norms dictate the buying behaviors of its potential customers. Consequently,

the mega enterprise has to ensure that it appeals to the social norms in every society. For

instance, previously, Nike has struggled to have impressive sales in the Far East market. These

forces are potent in the context of their marketing prospects. Also, the company has to shun away

from practices that will dent its image (Silva, 2019). To remain compliant, Nike has to review its

policies continually so that it remains in good terms with every society its operation.

These two forces are very critical to the success of the company. They dictate the kind of

practices that it should adopt to remain compliant and relevant to its market. Its success has been

anchored on reliable customers. As a result, it should train its policies to fit the demands of these

forces at all times for it to stand a chance of maintaining its dominance.

Five Forces of Competition

Competitive rivalry. Nike faces stiff competition from other established apparel brands

like Adidas, Puma, New Balance, Umbro, and many more. However, compared to the rest in the
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industry, only Adidas has resources that can challenge its muscle at the moment. The rest are

trying their best to outdoor the market leaders through continuous and sustained innovation. The

company holds patents to its products, meaning that companies will be most likely shy away

from copying its products.

The threat of substitute products. The apparel industry is very competitive. There is a

constant demand for products that guarantee a high order. With the future indicating that this

demand will only increase, the company, Nike, is forced to come up with better products

continually continuously. This way, the company will be assured of protecting its market lead.

This threat is genuine.

As a way of dealing with these forces, Nike has maintained its innovative edge over the

rest of the industry. For instance, it patents its products, meaning it isn't straightforward for them

to be counterfeited. Secondly, Nike is closely monitoring its practices and how to improve them.

These practices have helped it survive stiff competitions in the past.

Future approaches

Considering the two forces, the company should diversify its product lines as a way of

thwarting the threat posed by the availability of the new products. It already has many product

lines, but future trends dictate it produces more (Caetano, 2019). Regarding competition, its

rivals will continue to implement strategies that will usurp it as the market leader. To pre-empt

this, Nike should employ innovations and strive to maintain a good relationship with its

customers as a way of ensuring reliable long-term patronage.

External threats
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Counterfeit products. These products have significantly affected the revenue streams of

the company. Some companies take advantage of the excellent reputation to make products with

similar logos. This threat is becoming more prominent by the day. These copies are sold at lower

prices meaning that customers prefer them to the official Nike releases. Apart from robing the

company its revenues, it also tarnishes its reputation.

It enhanced competitive pressure. With the competitive nature of the industry, things will

only get more stringent in the future. The company has to spend more revenue on advertisements

and marketing campaigns. Also, it has to rely on its innovative edge to outwit them. I feel that

this is the biggest threat to its operation since if it fails, it means Nike will drop lower in the

pecking order.

Strengths and weaknesses

The biggest advantage the company has its vast brand awareness. Today, it is the most

conspicuous brand. Today Nike controls more than 31percent of the global market, which is

unrivaled. Its biggest weakness is the deplorable workable conditions in foreign countries. Over

the years, Nike has come under heavy criticism over the sweatshops and low wages. If it goes

unaddressed, the company will suffer significantly in the future.

Resources and competencies

Nike's competencies include sustainability, economies of scale, in-house technocrats,

superior marketing abilities, among many others (Gürel & Tat, 2017). The company can depend

on these traits to maintain its lead at the moment as it aims at realizing more success in the

future. Being the biggest in the business, Nike commands a large part of the market. However, it

should be cautious as the rest in the market are keen to overtake it.
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References

Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International

Social Research, 10(51).

Caetano, N. M. R. P. L. (2019). Nike marketing plan: the launch of Nike Academy in

Portugal (Doctoral dissertation).

Silva, D. T. D. M. (2019). Equity research-Nike, Inc (Doctoral dissertation, Instituto Superior de

Economia e Gestão).