Nike Implementation Plan
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Nike Implementation Plan
Introduction
Nike is a well-known company in the sports industry. Nike is responsible for footwear and clothing products across the globe. The company has grown its brand to an international level. Notably, the Nike brand has been in the limelight for at least two decades. The company has sponsored athletes, sportspersons and various teams in the contemporary world. Arguably, the company today realizes billions of revenue yearly due to sales of the products and sponsorship programs. In this regard, the Nike brand success is associated with the various implementation strategies ad plans introduced in this context. The components of implementation plans that have facilitated the company’s success incorporate effective competition, internal and external issues, and the organization’s future outlook. Thus, this paper provides a comprehensive analysis of Nike’s implementation plan while focusing on the above-stated components of implementation plans.
Internal And External Issues
Internal issues entail effective and strong brand awareness, low manufacturing costs, and pending debts. The three named internal issues determine the success or failure of the company. Effective and strong brand awareness is an internal issue that resides with the company. It is a narrative that facilitates the company’s market base worldwide. Arguably, strong and effective brand awareness fosters the athletic footwear market’s capture across the globe (Bush, 2019). Effective brand awareness, in turn, increases the revenue market cap of Nike. Low manufacturing cost is also an internal issue that enables the productivity of Nike goods. For example, the manufacturing cost in countries such as China and Vietnam enables immense profits. In essence, low manufacturing cost yields profits and increases revenue. On the contrary, pending debts is also an internal issue that determines Nike’s success or failure. For example, as of last year, Nike still has a long term of close to $9 billion (Bush, 2019). The pending debt creates a bad image for the company, thus reducing partnerships in the foreseeable future.
External issues involve emerging markets, partnerships with other Artificial Intelligence (AI) companies, ever-emerging regulations and policies, and widespread counterfeited products. Emerging markets from countries such as China with large consumer rates foster the company’s potential growth from a broader perspective. Partnerships with other Artificial Intelligence (AI) companies also promote customer service through the direct sales narrative. The AI companies help provide online sales and marketing while enhancing a rapport between the customer and the company (Nasirabadi & Bokaei, 2013). However, ever-emerging policies and widespread counterfeited products are external factors that negatively affect the implementation plan and limit Nike Company’s growth. In this case, ever-emerging policies challenge Nike products’ distribution due to continuous trade tariff changes in different countries. On the other hand, counterfeited products tarnish Nike’s image since most of the counterfeited products are low priced and low quality, hence limiting sales.
Competition
Competition is evident in any business venture in the contemporary world. Competition in business is what drives a company’s success or failure. Healthy competition is essential in the business world because it shows the customer’s product delivery and satisfaction’s effectiveness and sustainability. Notably, Nike Company faces healthy competition from companies such as Adidas and Puma. The named competitive companies have been in the sports market industry for two decades now alongside Nike. One ought to believe that the companies are rival companies; however, the competition among them is healthy from a broader perspective. For instance, competition is healthy because they produce the same products and have the same target audience worldwide. Therefore, the aspect of healthy competition drives the implementation plans of Nike Company so that the company can strive to be better and have a competitive advantage over the other companies.
Future Outlook Of The Company
Future outlook of the company that fosters the company’s implementation plan is the management functions. Management functions, in this case, entails controlling, leading, planning, and organizing. The four functions form the root cause of a successful implementation plan in the foreseeable future. Besides, technology, globalization, innovation, and diversity are the factors facilitating the future outlook of Nike Company. Technology is a factor in the company’s future outlook because it has been growing since its inception. For example, the presence of machine learning and AI, which will facilitate the company’s direct sales program and cut brokers. Globalization also makes the world a global village, which will enhance easy access to Nike’s products across the globe. In this case, innovation breeds diversity because coming up with new ideas on producing unique products and market them to other diverse communities is a win-win situation for the company. For example, Nike shoe products are highly sold in black communities in the U.S (Nike News, 2020).
Implementation Tools For Measuring Business Success
The implementation tools for measuring business success incorporate brand equity, innovativeness, and efficient distribution of products. In this case, brand equity measures the company’s success because it a narrative that commands the market from a broader perspective. In this case, commanding the market means that the company is the industry’s trendsetter and that the company is above its competitors. Innovativeness through research and development results in Nike products’ sustainable production while generating new ideas that apply to the general public. For example, the innovative idea of coming up with the Nike+ products appealing to the public domain. Besides, efficient distribution is also a tool for measuring the business’s success because it depicts how products reach consumers globally.
References
Bush, T. (2019). SWOT Analysis of Nike. PESTLE Analysis. Retrieved 29 January 2021, from https://pestleanalysis.com/swot-analysis-of-nike/.
Nasirabadi, E., & Bokaei, M. (2013). A study on the relationship of brand characteristics and customer satisfaction with brand loyalty. Management Science Letters, 3(7), 1907-1914.
Nike News. (2020). NIKE, Inc. Statement on Commitment to the Black Community. Retrieved from Nike News: https://news.nike.com/news/nike-commitment-to-black-community