Point 10

Product development

Product development is Nike's major intense growth strategy. This intense approach
entails the launch of new products to increase sales revenue. Nike's mission statement,
emphasizes innovation to produced new designs for shoes and other products. New
technologies improve items and help them to compete with other

Market Penetration

Market penetration is Nike's secondary intense growth strategy. The business expands
through boosting sales revenues in existing markets with this method. Nike, for
example, is increasing the number of stores and retailers in the United States to sell
more sports shoes in America.

Market Development:

Market development is one of Nike's intensive growth strategies. By focusing on new

markets or market segments, this approach helps the company to grow. For example,
Nike increase its revenue by entering the market of the middle east and Africa

Cost Leadership Strategy:

Nike's generic cost leadership approach helps the company maintain a cost advantage.
in this strategy the company lowers manufacturing expenses to maximize profits or
lower selling prices. For example, in 1990 Nike decreased the selling prices of its
athletic shoes. This broad competitive approach helped the corporation in regaining
competitiveness, especially against Adidas.

Differentiation Strategy:

It is a strategy used by a company to create a product or service that customers would

find superior or distinct from other competitors. The strategy of differentiation allows a
company to differentiate itself from the competitors.in this strategy company sometimes
offer a higher cost to provide a unique product to the customer. For example, the brand
integrates cutting-edge shoe designs. Nike's worldwide success is boosted by the
combination of cost leadership and differentiating generic strategies Based on the
differentiation generic approach, one financial goal is to maximize Nike's profit margins,
such as on new sports shoes

Point 12

1. Design of Goods and Services:

Nike's athletic footwear and other products are designed in this strategic decision area.
The purpose of operations management is to make sure that product design matches
organizational capabilities and business objectives.

2. Quality Management:
Nike puts a focus on quality in both its processes and products. The goal of this
strategic decision area is to meet consumers' product quality expectations.

3. Process and Capacity Design:

Nike's operations management must prioritize streamlining and production efficiency in
this strategic decision. The goal is to guarantee that output is adequate, effective, and
efficient.

4. Location Strategy:
Physical location is the typical concern in this strategic decision area of operations
management. The goal is to reduce costs and increase efficiency by putting employees,
suppliers, and the target market closer together. for example, Nike has sports shoe
suppliers in Southeast Asia because of the lower cost of labor in the region.

5. Layout Design and Strategy:

Nike’s operations management deals with the layout design of its facilities. The
objective in this strategic decision area is to optimize workflow based on human
resources, capacity requirements, technology, and inventory requirements. For
example, the firm uses office layouts where employees can move easily.

6. Supply Chain Management:

Nike has excellent supply chain management, which facilitates efficient production to
support the global sports shoes, apparel and equipment business. The objective in this
strategic decision area of operations management is to align the supply chain with the
company’s overall strategic aims.

7. Inventory Management:
The objective in this strategic decision area is to maintain operations management that
minimizes inventory costs while maximizing its effectiveness and efficiency.