Course name and code

ABSTRACT
Detailed and critical strategic study on Nike ( Air
jordan) , how they use different strategies from
other to gather large market share and maintain its
reputation in the fashion and sports market.
Course name and code
Student Name and Faculty Name
NIKE AIR JORDAN
Industry sector: Fashion apparel &sports equipment’s
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Contents
Nike( Air jordan) Company Brief................................................................................................2
Nike jordan company Strategic Management and Strategic Intent 25%................................2
1.1 Introduction to Strategic Management..........................................................................2
1.2 Overview of Strategic Management Process.................................................................2
1.3 Levels of Strategy..........................................................................................................2
1.4 Strategic direction-Vision and Mission.........................................................................2
1.5 Business Definition.......................................................................................................2
1.6 Directions of Corporate Social Responsibility and Business Ethics.............................2
X Industry Sector Strategic Analysis Models.............................................................................3
1.7 External Environment Appraisal using PESTEL 25.....................................................3
1.8 Competitor Analysis using Porter’s 5-Forces model....................................................3
1.9 Environmental Threat and Opportunity Profile (ETOP)...............................................3
1.10 Value chain Analysis.................................................................................................3
1.11 Scanning Functional Resources and Capabilities - Capability Profile (OCP)...........3
1.12 SWOT Analysis.........................................................................................................3
Overview of Strategic Formulation..............................................................................................4
1.13 Strategic alternatives at corporate level: concept of grand strategies........................4
1.14 Strategic choice models – An overview of Strategic Choice Models.......................4
1.15 Red Ocean and Blue Ocean.......................................................................................4
1.16 Strategic alternatives at business level: Michael Porter’s Generic competitive
strategies,.................................................................................................................................4
1.17 Strategy as Simple Rules...........................................................................................4
Industry Expectations to Strategic Implementation..................................................................5
1.18 The implementation process......................................................................................5
1.19 Objective, task setting, and resource allocation.........................................................5
1.20 Organization structure...............................................................................................5
1.21 Leadership and culture...............................................................................................5
1.22 Strategic Control........................................................................................................5
Recent Developments (evolving business news)..........................................................................6
1.23 Managing Strategic Choice........................................................................................6
1.24 Role of technology and innovation in strategy development....................................6
1.25 Strategic Issues in Entrepreneurial Ventures.............................................................6
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Nike (Air Jordan)

Air Jordan (in some cases contracted AJ) is an American brand of ball shoes, athletic, easygoing,
and style attire delivered by Nike. Established in Chicago, Air Jordan was made for Hall of Fame
ball player and six-time NBA Finals MVP Michael Jordan during his experience with the
Chicago Bulls,[ CITATION www \l 1033 ][ CITATION Bri \l 1033 ]

Shoes were just shoes for the first 80-some-odd years of the 20th century. Then in the mid-
1980s, Nike released a pair of basketball shoes featuring a certain ex-Tarheel. The Air Jordan
was born, and the rest, as they say, is history.

As legend has it, the iconic Air Jordan sneaker series almost never lifted off. Soon after Michael
Jordan debuted the Air Jordan I, the NBA stepped in and banned the shoe because they featured
"non-regulation" colors. Suffice it to say, Jordan didn't listen and thusly, the great basketball
shoe boom began.

1.1. Introduction to strategic management

1.2. Introduction to strategic management

1. Setting objectives
- Creating products that provide superior performance with a lower
environmental impact.
- Passionate about the needs and wants of their consumers.
- To become the one stop destination for sneakers enthusiasts and sportswear.
2. Analyzing competitive environment
- Competitors in U.A.E – adidas, puma, reebok, underarmour.
- Challenges:
3. Analyzing resource capabilities
- Worldwide stores- 1096
- Presence- 46 countries
- Revenue- 37.4 billion USD
- Employees- 75,400
- Products offered- mens and womens sportswear, activewear and many
more.
- Acquisitions- Umbro(2007), Converse(2003)
4. Continuous evaluation
- Growth: originally opened as Blue Ribbon Sports in 1964 in Oregon, usa,
which acted as a distributor for Japanese shoe maker Onitsuka Tiger.
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- Change: the relationship of BRS and Tiger ended, which led to BRS
creating their own footwear line rebranded as Nike. Through the years,
Nike added several product lines to cater to the growing customer base.
- Upgrade: increasing their operating scale to becoming a worldwide present
store and cater to the international customers.
5. Implementation
- Nike has customer friendly staff who are there to assist the walk in
customers in their purchase decisions.
- Moreover, Nike has also created an e-commerce presence by allowing their
customers to shop online at their official website.
6. Improvement and innovate
- Nike has always been an early adapter of new advertising techniques such
as internet marketing, email management technologies and using various
communication tools to create multimedia marketing campaigns.
- Furthermore, Nike has been well known to make advertisements that are
widely appreciated by their customers. These ads ensure that customers are
aware of the upcoming products by Nike.
1.3 levels of strategy
A well-organized strategy is important for any organization as it acts as the base for the
operations to be carried out and effective decisions to be made. The common levels of
strategy that are enforced in the corporate world are Corporate Level Strategy, Business
Level Strategy and Functional Level Strategy.
Nikes primary product focus would be their athletic footwear that is designed for support
and agility purposes along with leisure footwear. Along with the minor products that
Nike produces, it uses the same distribution channels and resources such as technology.
Keeping in mind the global economic crisis, it is important for Nike to diversify their
manufacturing and supply chain process. Moreover, Nike should also pay attention to
creating a large base of suppliers to cater to the demands of their customers worldwide.
In their business level strategy, Nike follows a cost leadership strategy and differentiation
strategy. By creating high quality products and product differentiation, Nike sets a
different brand image when compared to its competitors. Cost leadership is not
something that Nike specializes in since their prices range towards the higher end, which
the customers are ready to pay for since they are receiving a high quality and unique
product in return. Moreover, Nike has several high profile individuals and sports athletes
that they sponsor and employ as their brand image which impacts the buyers decision
making process. They have built a certain reputation with their brand image which
ensures they will not lose their customers. Also, if Nike focuses more on the
differentiation strategy, they can invest into the technology and innovation to create new
products which will give them the upper hand in the competitive market.
Nikes functional level strategy includes focusing on the research and development and
intensive marketing. Through product innovation, marketing, analyzing the needs and
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wants of the customers, Nike can continue to be successful in the market and maintain the
industry leader position. Nike is clear on their strategy by providing quality products that
perform well which has formed a brand loyalty which is not often seen in a high priced
industry.

1 Nike Air Jordan Strategic Management and Strategic Intent 25%

1.1 Introduction to Strategic Management
1.2 Overview of Strategic Management Process
1.3 Levels of Strategy
1.4 Strategic direction-Vision and Mission
Nike Inc's. corporate mission and vision explanations advance to precisely address the
organization's situation as the main athletic shoes and clothing provider in the worldwide market.
Nike's Corporate Mission Statement

Nike Inc's. corporate mission is "to carry motivation and development to each competitor on the
planet." The organization further expresses that everyone is a competitor, in view of Nike author
Bill Bowerman's assertion, "On the off chance that you have a body, you are a competitor." This
statement of purpose addresses the organization's essential objective of contacting the worldwide
relaxation and sports footwear, clothing and gear market. The accompanying principle segments
are in Nike's corporate statement of purpose[ CITATION NAT \l 1033 ]:
1. Inspiration
2. Innovation
3. Every athlete in the world

Nike's Corporate Vision Statement

Nike Inc's. corporate vision is "to stay the most credible, associated, and unmistakable brand."
The business keeps on applying this vision explanation, which was stressed in the organization's
worldwide development technique for 2015. The organization centers around building up its
image. Coming up next are the prominent segments of Nike's corporate vision
explanation[ CITATION NAT \l 1033 ]:

 Authentic
 Connective
 Distinctive

1.5 Business Definition

Nike, Inc is an American global enterprise that is occupied with the plan, improvement,
fabricating, and overall advertising and deals of footwear, attire, hardware, adornments, and
administrations. The organization is settled close to Beaverton, Oregon, in the Portland
metropolitan zone. It is the world's biggest provider of athletic shoes and apparel[ CITATION
Sag08 \l 1033 ] and a significant maker of athletic gear, with income in overabundance of
US$37.4 billion in its monetary year 2020 (finishing May 31, 2020). Starting at 2020, it utilized
76,700 individuals worldwide.[ CITATION for \l 1033 ] In 2020 the brand alone was esteemed
in abundance of $32 billion, making it the most significant brand among sports businesses.
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[ CITATION htt17 \l 1033 ]Previously in 2017, the Nike brand was esteemed at $29.6
billion.Nike positioned No. 89 in the 2018 Fortune 500 rundown of the biggest United States
enterprises by complete revenue.

The organization was established on January 25, 1964, as "Blue Ribbon Sports", by Bill
Bowerman and Phil Knight, and authoritatively became Nike, Inc. on May 30, 1971. The
organization takes its name from Nike, the Greek goddess of victory.[ CITATION PHI16 \l 1033
] Nike advertises its items under its own image, just as +, Air Jordan, , Nike Dunk, Jordan Brand
and Converse.
1.6 Directions of Corporate Social Responsibility and Business Ethics

Athletes propel themselves toward increasingly elevated degrees of execution. They need to
accomplish their own best. That is the way Nike approaches corporate duty. It's not just about
improving at what they do – tending to impact all through their production network – it's tied in
with making an incentive for the business and developing for a superior world. Pratap, A. (2019,
October 15). Nike CSR and sustainability. Retrieved from https://notesmatic.com/2018/02/nike-
csr-and-sustainability/
As ecological, social, and monetary difficulties on the planet multiply, they request best
execution. Nike is utilizing the force of their image, the energy and enthusiasm of individuals
and the size of business to make a significant change. The chance is more noteworthy than any
time in recent memory for manageability system to drive business development, construct further
buyer and local area associations, and make positive social and ecological change.
Nike is centering corporate duty endeavors in the regions in which they can have the best effect
and make the most worth: Through the materials they plan into items, through the way they
make those materials and items, and in the realm of game where items are utilized.
Through an assortment of cycles, including partner counsel and lifecycle evaluation, Nike has
distinguished their most huge effect territories that incorporate Energy and Climate, Labor,
Chemistry, Water, Waste, and Community. As the brand assesses and oversees key effects, they
build up a superior comprehension of how interrelated they are and how an incorporated way to
deal with item plan and interaction advancement can yield benefits across different effect
territories.

The Nike Foundation

The Nike Foundation use the force of experiences, advancement and motivation to stop the
pattern of intergenerational neediness. As an organization, Nike has faith in the force of human
potential. At the Nike Foundation, we put solely in what we see as the best wellspring of
undiscovered human potential on the planet today: young adult young ladies.
The Nike Foundation is spearheading another way to deal with improvement by making
experiences driven advancements, vital associations and arrangements that can be scaled to
empower and prepare juvenile young ladies to understand their latent capacity. At the point when
a young lady in destitution finishes auxiliary school, weds and has her first kid later, she assists
with making monetary development, political and social steadiness.
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Key points in CRS of Nike

 Venture of $79.4 million in networks all through the world in financial 2018. Complete
$396 million contributed since 2014.
 Nike workers offered more than $7.5 million in the year 2018 to worthy missions all
through the world.
 Nike helped more than 16.5 million children around the world through its Made to Play
responsibility.
 VP level portrayal of ladies increased from 4% carrying it to 36%.
 93% of its 542 plants were evaluated bronze or better for environment friendly
production.
 471 plant reviews of Nike were conducted by third parties for Nike's benefit.
 Using sustainable cotton helped save in excess of 32 billion liters of water.
 Since 2010, Nike has changed more than 6.4 billion containers into reused polyester
footwear and clothing.
 73% of Nike brand footwear and clothing styles utilized some sort of reused material.
 Nike got 75% sustainable power in the organization possessed or worked stores.
 Nike shoes made with Flyknit have created more than $2 billion in income by 2018.
 Contributing at least 1.5% of pretax pay into local area developmental activities.
 Zero in on sourcing just from the plants that meet its supportability models.
 10% decrease in normal ecological impression.
 Source 100% of the cotton across Nike activities all the more economically and develop
the utilization of manageable material in footwear and attire.
 Accomplish 100% environmentally friendly power utilization across offices possessed or
worked by the organization before the finish of FY 2025.
 Reduce generation of non-biodegradable waste in the Nike activities and take out
footwear producing waste to landfill or cremation.
 Optimum water use in the Nike inventory network by receiving new and imaginative
methodologies.
 Accomplish in any event a 20% decrease in freshwater use in material colouring and
wrapping up.
 Accomplish Global Pay Equity

2 X Industry Sector Strategic Analysis Models

2.1 External Environment Appraisal using PESTEL

1) Political Factors

● The US has great growth policies which are valuable to these corporations. Such as low
interest rates and well arranged international tax arrangements.
● Always subjected to changes in tax and manufacturing laws.
● Political conflicts can always make customs related processes difficult, or prevent imports
and exports.
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2) Economical Factors

● Collapse in the market could be bad news as consumers may switch to cheaper products with
just a decent amount of quality.
● Their revenue depends on the low cost of labour in Far Eastern countries. So development in
less economically developed countries means higher prices across the globe.

3) Social Factors

● Worldwide increases in ‘health consciousness’ means that more and more individuals are
moving towards better lifestyles. These people will undoubtedly buy plenty of sports apparel
● They receive much criticism for its dubious production processes.

4) Technological Factors

● Social media allows things to blow up faster than ever. They are doing well with using social
media to build their brand, but it can be a double-edged sword if used incorrectly.
● They also get the opportunity to use valuable information based metrics thanks to
technological advances, allowing for them to optimize targeting and production, and
maximize revenue.

5) Environmental Factors

● Mass production factories are harming the environment. Not only do they release plenty of
aerial pollution like most factories, but also go as far as directly polluting rivers.
● However, they are trying to change their current practices with the resolve to be more eco.

6) Legal Factors

● Massive corporations evade substantial amounts of tax which we should take into
consideration.
● The occasionally meets legal repercussions for its shady marketing practices, which include
false discounts.
Bush, T. (2016, June 15). A pestle analysis of nike. Retrieved March 28, 2021,]

2.2 Competitor Analysis using Porter’s 5-Forces model

1) Competitive Rivalry (Strong Force)

● Low market growth rate (strong force)

● High aggressiveness of firms (strong force)
● Moderate number of firms (moderate force)

2) Bargaining Power of Buyers (Moderate Force)

● Low switching costs (strong force)

● Moderate substitute availability (moderate force)
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● Small size of individual buyers (weak force)

3) Bargaining Power of Suppliers (Weak Force)

● High overall supply (weak force)

● Large population of suppliers (weak force)
● Moderate size of individual suppliers (moderate force)

4) Threat of Substitutes (Moderate Force)

● Moderate availability of substitutes (moderate force)

● Moderate performance per price of substitutes (moderate force)
● Low switching costs (strong force)

5) Threat of New Entrants (Weak Force)

● High cost of brand development (weak force)

● High economies of scale (weak force)
● Moderate cost of doing business (moderate force)
[3:Rowland, C. (2017, February 07). Nike Inc. five forces Analysis (Porter's Model). Retrieved
March 28, 2021,]

2.3 Environmental Threat and Opportunity Profile (ETOP)

2.4 Value chain Analysis
Inbound Logistics:
Nike has a worldwide obtainment group to deal with the acquirement some portion of its
inventory network the board. It incorporates choosing and reaching the correct providers for the
correct products and enterprises. In the new years, it has genuinely centered around
manageability and in such manner is attempting to lessen its natural effect. Its providers are
presently less in number and the ones who remain are focused on Nike's norms of value and
maintainability. Its sourcing methodology offers need to the providers who will go past the base
norms and can adhere to the guidelines identified with manageability stringently. At Nike,
virtually the entirety of its items are made by self employed entities.
Operations:
Nike is settled at Oregon in North America. It is likewise the greatest office which gloats of the
greatest number of Nike workers. Aside from that, it has workplaces in Europe, Middle East,
Africa, Greater China, Asia Pacific and Latin America. Nike is available universally and every
one of its office obliges huge topographical spaces of a few nations. In North America alone,
there are in excess of 2000 retail locations served by a solitary settle. It utilized in excess of
70,700 laborers in its workplaces in 2017. ( Fortune ,n.d)

Outbound logistics:
Outbound logistics are an extremely basic piece of Nike's worth chain. There are in excess of
500 plants making Nike items in 42 nations. The items dispatched from these producers to the
Nike Distribution focuses must be shipped off the retail locations for deals. Nike has utilized a
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chain of local conveyance places to oblige the requirements of its retail locations so clients don't
need to stand by long for another item after its delivery.

Marketing and sales:

Aside from its extraordinary quality, Nike jordan is likewise known worldwide for its superb
promoting technique beginning from its Swoosh logo and can be found on all Nike items. In any
case, Nike additionally puts vigorously in advertising and uses sportspeople like Football celebs
for the showcasing and advancement of its items and brand. Its video showcasing technique is
particularly valued by the Nike jordan fans.

Technology:
Technology and item quality both are significant segments of Nike's creation methodology.
While the emphasis is on best quality, supportability has likewise become a significant
concentration for Nike. It is utilizing top tier advances to reuse the waste produced by the Nike
manufacturing plants and different advances that explicitly center around making material that is
both easy to understand and practical. It is utilizing innovative answers for limit its effect on the
climate and constantly improve the nature of its items.

HRM:
The executives of a worldwide association is absurd without having a huge and talented staff. All
around the world, the brand utilizes more than 70,000 and has established a culture and climate
that cultivates variety and consideration. Nike was perceived for its incredible HR the board and
included as probably the best boss and as perhaps the best manager for Diversity on Fortune's
rundown. Sound HR the executives is likewise a significant concentration down the inventory
network of Nike and its providers additionally need to follow exacting guidelines identified with
work and HR the board.

Procurement:
Great quality items are fabricated from acceptable quality crude materials. At Nike, quality is a
vital concentration and along these lines, there is a whole procurement group committed to this
undertaking which investigates and assesses the qualified providers. It keeps just the ones who
can ensure more than the base quality prerequisites. Crude materials are acquired from a few
nations.

Firm Infrastructure:
Nike is a worldwide firm and as such has an enormous and worldwide infrastructure made out of
its workplaces, retail locations and conveyance and coordination focuses. This huge
infrastructure additionally assists it with dealing with its worldwide presence well. It is settled in
a condition of craftsmanship working with a lake and a few other unprecedented offices for its
staff.

2.5 Scanning Functional Resources and Capabilities - Capability Profile (OCP)

CAPABILITIES
1. While quality is the core strength of Jordan, it has been successful by focusing on
each aspect of the business including supply chain management and human resource
management.
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2. Here is a list of the resources and capabilities that have helped Jordan gain an edge and
become a leading brand.
3. Learn about how these resources and capabilities have helped Jordan gain and sustain its
competitive advantage.
4. Apart from excellent marketing, the brand is popular for its focus on quality and
innovation.
5. It is a customer-centric brand that has maintained a consistent focus on quality and
product innovation.
6. Jordan’s dominant market position in the sports shoe industry is based on several sources
of competitive advantage.
Brand Quality
1. Apart from the other things, its focus on quality and innovation has resulted in high brand
equity which helps generate higher sales and to build a larger customer base.
2. Strong brand equity is a result of a strong commitment to quality and customer
experience.
3. Strong brand equity comes from building trust and customer experience.
4. Brand equity depends upon what your customers think of you and how well designed
your customer experience is.
Product Quality
1. However, Jordan has brought a large range of products and by sustaining its quality level,
it has also been successful at building high-level trust among its consumers.
2. Any market-leading brand has become successful by consistently focusing upon quality
and by bringing market-leading products and innovations for its customers.
3. A consistent focus on great product quality helps a company achieve loyal customers.
4. Product quality also leads to higher customer retention and higher trust among
consumers.
RESEACH AND INNOVATIONS
1. Most of the market-leading brands in nearly every industry place a heavy focus on
research and innovation so as to bring good quality products to the market.
2. Jordan also invests a heavy sum in research and development each year to grow its
product range and bring market-leading products.

Marketing
1. It has a great video marketing strategy that it uses to promote new products and to reach
out to its customers worldwide and engage them to gain higher loyalty.
2. It helps you gain popularity and customer loyalty as well as stay connected with your
customers.
3. Marketing helps you build a strong customer connection and establish yourself in the
right image.
4. Brands that fail to engage their customers well or provide a superior and unique customer
experience will not be able to achieve success.
5. Apart from driving sales, marketing also helps build a distinct image and differentiated
identity in the industry.
6. Apart from the other digital marketing channels, Nike uses social media for engaging its
customers.
Global Presence
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1. To strengthen its global presence, it has built strong relationships with its suppliers and
distributors which enables Jordan to source the best quality raw materials and serve its
customers better.
2. Jordan has maintained a global sales and distribution network that enables it to reach its
millions of customers without any difficulty.
Customer Loyalty
1. Other factors like product quality, pricing, marketing, and promotions also play an
important role in building stronger customer loyalty.
2. Building customer services requires focusing on several aspects of business apart from
product quality.
3. To win loyal customers requires a special focus on providing a superior customer
experience.
Supply Chain
1. This offers Jordan a consistent supply of good quality raw material so it can bring
excellent products to the market for its customers.
2. To sustain its leadership position Jordan needs a continuous supply of good quality raw
materials.

2.6 SWOT Analysis.

1) Strength

● Jordan comes under the well known nike brand.

● Their success has made them seen as a luxurious brand.
● So, their products are priced high
.
2) Weakness

● Since the price is high, it limits the people who can afford them.
● Nike has quality issues with Jordan which could affect the sales.

3) Opportunity

● Starting new branches in new areas helps increase the image of the brand and allows more
people to acquire the shoes.
● Nike has the ability to sponsor athletes, which increases the demand for products.

4) Threat

● Nike’s main competitive rival is Adidas, which is also jordan’s threat in the market.
● Nike’s lawsuit over the logo with Jordan has a bad image on them.
● Natural disasters occuring in Indonesia, where their factories are based.
● Sponsoring an athlete is a threat when their public image is at risk.
[2: Jordan BRAND SWOT ANALYSIS STRENGTHS (2020, June 15). Retrieved March 28,
2021]
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