PowerPoint

Anonymous

Question Description

I attached PowerPoint file you need to fill out each slide from the information file , its also attached .
the information about NIKE company PEST analysis and Porter’s five forces

Unformatted Attachment Preview

External Analysis to analyze the competitiveness of ___ industry for _____ Introduction of company • Clear description of company, list their major business units • Is the subject of this analysis a specific business unit? • Scope {Please refer to • What industry is this business(unit) competing business within references to complete this} Industry • provide a clear description/positions and names of key players in that industry including scope, size, growth forecast, What is the stage of the business lifecycle? Emerging, growth, declining, mature • (use graphics here if you can) • Current/Future trends {I should be able to get a complete picture of the industry} Industry • Identify the main competitors (direct, indirect) – Market share – Other relevant info – Basis of competition • (use graphics here if you can) Background of Company Mission statement of company Macro environment Analysis: PEST – Use a template explore a few factors: each factor will have an impact on your business: they can give you opportunities or pose a threat – Apply the PEST to your business • (select at least three factors: for each force, evaluate its impact on the business, is it an opportunity or threat?) Source: – https://www.mindtools.com/pages/article/newTMC_09.ht m – http://www.whatmakesagoodleader.com/supportfiles/strategic-planning-template-macro.pdf – http://pestleanalysis.com/how-to-create-pestle-analysistemplate/ Takeaways from PEST • List any opportunities or threats found after PEST was conducted • You can use the format of the worksheet found on mindtools – https://www.mindtools.com/pages/article/newT MC_09.htm Summary of PEST analysis • Use a table/list to summarize the Opportunities & threats to might influence your business • Role of IS • Action Steps- just writing down is not good enough Industry Analysis: Porter’s five forces Purpose of Porters Forces 1 • Conclusion from effects of force 1 (e.g. high or 5) – Reasons to validate your conclusion ( provide a list of concrete facts) • Opportunities ( to negate the effect of the force) • Role of Information Systems {your reasons must be factual, I will validate} Forces 2 • Conclusion from effects of force 2 e.g. high or 5 – Reasons to validate your conclusion • Opportunities ( to negate the effect of the force) • Role of Information Systems You need at least one slide for each of the five forces Summary of Porters analysis • Use a table to summarize the forces (all 5 must be included)• Role of Information Systems Summary of Porters analysis • Use a table/list to summarize the Opportunities ( do not confuse threats with opportunities, see examples below) – – – – – Alliance with suppliers Increased customer service Acquisition Improved products Grow product offering (Alternatively one can use next slide as sample) • Role of IS Sample table summarizing threats and listing opp. Analysis of Porter’s analysis • Which forces pose the greatest threats? -what threats should the company focus on? • Where are the company’s greatest opportunities? Analysis of Porter’s analysis • What are the main drivers of competition within the industry? – (Innovation , price, technological changes) • What can you leverage to gain market share? – how do you see the company being competitive Motivation for competitive strategy • Results of PEST + • Results from Porter + • Basis of competition in Industry Competitive Strategy(ies) – (opportunities should signal strategies you should explore, threats you need to monitor or eliminate) Recommendations References This is a research project so let’s start: Gather at least 10 reference sources (This takes time) Select a business- business unit you will be conducting the analysis for. Start collecting your information. Select your business: Name of Business: __Nike Inc._____ • Provide a clear description of company Nike is a multi-national sporting shoe manufacturer located in the U.S. The company which was formed in 1964 as Blue Ribbon Sports manufactures, distributes, and sells sports shoes, apparel, and sports equipment. Matter of fact, it is the world’s largest supplier of athletic shoes and apparel. The headquarters of Nike are in Beaverton, Oregon and the company has a worldwide supply chain for its products. The company has retail stores in over 1142 locations around the world, and its manufacturing plants are mainly located in Asian countries such as China, Cambodia, and Pakistan (Mahdi et al., 2015). Nike is a dominant player in the athletic footwear industry but must initiate innovative product development to increase market growth and discard the threat of competitive rivalry from Adidas. • What are the Business units within the company? Nike’s business units are divided according to the products handled as well as the locations of the units. The main unit is the footwear business unit. Other units include the apparel segment, equipment and “other” segment, the North American segment, EMEA, Asia Pacific, other emerging markets, and global brand divisions. • What are the main products/services? The company handles footwear, apparel, and sports equipment as the main products. The company is also involved in extensive sponsorships for teams and individuals in sports. • Are you doing the analysis for a particular business unit or the entire company- dependent on the company you may select a specific business unit for this analysis For this analysis, I adopt a specific analysis of the company’s footwear unit. The reason for choosing the footwear unit for analysis is because it is the most significant business unit which is well-structured and visible in the industry. • What industry is this business unit competing within? Nike operates and competes within the athletic footwear industry. Identify the Industry Nike operates and competes within the footwear industry where it mainly manufactures, distributes, and sells sports shoes for athletics and casual wear. The footwear industry includes companies engaged in manufacturing and selling footwear such as dress shoes, sneakers, slippers, athletic, and sandals. The specific unit of the business industry that Nike is placed in is the athletic footwear whereby the shoes produced by Nike are mainly for athletics purposes. Other than merely designing and manufacturing for suitability, the industry also experiences customization for style and identity. The sports footwear industry thus involves competitive comfortable designs that target a subset of sportspersons. For instance, shoes may be designed for track events while others may be designed for specific sports such as basketball or even rugby. The global athletic footwear industry was valued at around 80 billion dollars in 2015. Grand View Research (2013) predicted average growth of around 2% compound annual growth rate between 2016 and 2024. Therefore, judging from the anticipated growth, it is evident that the industry is a mature one almost reaching a level of stagnation. The anticipated growth is mainly due to increased participation in sports activities and also the increasing global populations. Also, it can be anticipated that the growth can be attributed to the increasing adoption of healthy lifestyles which include exercising. The industry is expected to grow further due to the innovation in providing lightweight and increased functionality footwear for different subgroups. The global athletic footwear industry is characterized by a few dominant players with many other local or international players as well. The key players include Nike which is the leading supplier of athletic footwear, Adidas which is Europe’s largest and most successful sportswear company, and Puma which comes third regarding dominance in sports footwear. These three companies have subgroups and have acquired various brands in several areas thus becoming the three most dominant players in the athletics sports footwear. According to Statistica (2018), Nike is still the most dominant player with revenue of 19.87 billion dollars in 2016. The company was followed by Adidas revenue of 10.68 billion dollars with Puma closing the top three with revenue of 1.71 billion dollars. These figures show that Nike is the dominant market player and it made more sales than the other two combined. Adidas and Puma are the main competitors of Nike. The most direct rival is Adidas which has been the biggest rival of the business, especially in Europe. Puma is also considered a direct competitor, but it does not pose a significant threat to Nike’s sales. The basis for the competition is mainly through the sales of athletic footwear and also the sponsorship of sports teams and individual athletes. Soccer teams have received massive sponsorships from these key players with Nike sponsoring different entities such as Michael Jordan, the National Football League and many other teams and sportspersons. Adidas also sponsors several national teams and individual sports personalities. Another basis for competition is the production of lightweight, eco-friendly shows that provide great ergonomics for the users. Now for the industry analysis utilizing porters Threat of Competitive Rivalry Threat of New Entrants is moderate to high List your reasons to support your conclusion • High aggressiveness of rival companies such as Adidas and Puma in large markets • Low market growth of the company due to high market saturation • There is a moderate number of firms affecting the organization’s market share (Reuters.com, 2016). Are there any opportunities? How? Nike is a dominant player in the industry.Increasing its market penetration in rival areas will allow it to compete effectively and remain on top. How does Information Systems affect this force?Check table 3.5 in textbook for ideas Accessing the organization’s products online can allow customers to choose between the organization and rival firms. That way, implementing competitive online challenges of the opponents’ products is critical. Threat of New Entrants Threat of New Entrants is Low List your reasons to support your conclusion • There is a high cost of brand development based on Nike’s decades of product development (Butler, 2018) • Nike has a high economies of scale • The cost of production is high Are there any opportunities? How? Nike is a dominant player in the industry. It can create a catastrophe by penetrating markets that it has not yet penetrated and thus prevent entrants in those markets How does Information Systems affect this force?Check table 3.5 in textbook for ideas The company can build barriers to prevent new entrants or make it hard for new entrants. The company can implement an ongoing technology for buyers in the supply network to make it hard for them to switch to new entrants (McPherson &Alsuwaida, 2015). Threat of Substitutes and Substitution Threat of Substitutes is Moderate List your reasons to support your conclusion • Most of the competitors make similar and matching products. • The threat is increased by low prices of international and local producers (McPherson and Alsuwaida, 2015). Are there any opportunities? How? Nike can lower the prices of a select number of products to make it unnecessary to switch to cheaper options. How does Information Systems affect this force? Substitutes for Nike may not only be in the athletic footwear industry and many may be available online such as online shopping for official and casual shoes. Bargaining Power of Customer Bargaining Power of Customer is moderate List your reasons to support your conclusion • There are many competitors thus making switching costs low • The quality and marketing of Nike moderates the force by focusing on performance and design (Butler, 2018). Are there any opportunities? How? Nike can reward loyal customers thus allowing growth in customer loyalty. How does Information Systems affect this force?Check table 3.5 in textbook for ideas Many buyers mean less bargaining power for each individual. Increasing the availability of information on Nike and its products online increases the number of buyers thus lowering their bargaining power. Bargaining Power of Suppliers Bargaining Power of Suppliers is low List your reasons to support your conclusion • High number of suppliers minimizing individual supplier’s power. • High overall supply meaning that the company deals in high amounts of commodities • Nike sets standards for suppliers to adhere failure to which it simply switches to other suppliers. Are there any opportunities? How? Nike strongly controls its suppliers and performs audits on them to ensure adherence to quality and ethics standards. It thus can source suppliers from many parts of the world (Mahdi et al., 2015). How does Information Systems affect this force?Check table 3.5 in textbook for ideas As technology allows interaction with and availability of more suppliers online, it makes the supplier bargaining power to fall since there is a wide range of choices. Step 3.Summarize your findings, make recommendations. Formulate strategies based on your findings. Create a table summarizing the forces? Summary of Forces Threat of Substitutes Threat Due to the pricing model, Nike can easily be substituted by lower cost brands. Competitive rivalry Adidas presents a bitterrivalry with Nike and threatens to overtake the company should there be laxity. Role of IS Substitutes for Nike may not only be in the athletic footwear industry and many may be available online such as online shopping for official and casual shoes (Yan, 2008). Rivals use the same technology in manufacturing and marketing their products. Which opportunities should the company embark upon? Create a table summarizing the opportunities Forces Opportunities Bargaining power of Nike obtains supplies in suppliers large volumes from many suppliers which it can vet and audit regularly. Bargaining power of customers Role of IS Interaction with probable suppliers online to limit the bargaining power by increasing access to more suppliers. Nike can increase its Technology mediates coverage of customers communication by increasing online between the company availability to widen the and its customers. customer base and reduce their bargaining power. Which forces pose the greatest threats?Nike faces two greatest forces in the athletic footwear industry. The first and most serious force is the competitive rivalry of companies such as Adidas. Second, it faces the threat of substitutes in various markets mainly due to its pricing model. Where are the company’s greatest opportunities?The existent opportunity is competing in innovative, attractive designs for footwear (CNBC-TV18, 2017). Further, the company can invest in unsaturated markets especially in Asia. Information systems affect the company’s supply chain through the advertisement of its products and services. Further, the company is investing in global communication systems which require sophisticated equipment to allow global coordination of its activities in all global locations What are the main drivers of competition in this industry?The main driver of competition in the market is the design for performance. Nike has dominated the industry due to its superior attractive designs. Based on your analysis, can you suggest a competitive strategy(ies)? The best strategy to counter the threat of substitution for Nike is to come up with a mixed-pricing strategy. Nike is already an established company with a stable profit margin and already enjoying a range of prestigious products. However, as Johansson (2010) presents, the company may easily be substituted in markets where it has not achieved saturation. With the threat of reduced sales in such areas, the company should adopt mixed pricing strategies whereby in unsaturated markets, reduced prices of items are adopted and the pricing adjusted after market saturation is achieved (Kell, 2016). Nike PEST Analysis Political Economical The consideration of the political The economic environment affects the environment is important in enhancing the operation of the organization as the conditions success of the business. of the economy influence the company I. Nike has gained from the US government policies that are oriented II. III. growth. I. The economic trends in the US market towards growth leading to stability in such as the slowdown in 2008-09 currency exchange and the lowering affected the operations of the company of the interest rates. leading to a decline in profitability. The company has suffered from II. The market cycles in the emerging political wars and conflicts in the market have helped in the country of operation and this is establishment of the brand and this has especially in the Asian country that created the changes that enable has increased the expenditure of the company expansion due to increased company (Landrum, 2008). consumer demand. The legislative framework of the III. The economic policies of the country of operation such as United underdeveloped countries create Kingdom focuses on the interest of the challenges for the operation of the shareholders creating a favorable company and it has faced law suits in environment for operation. the rates of labor and the need for the retention of the employees. Social Technological Social forces of the country of operation are The technological environment is constantly important in guiding the performance of the changing and this requires that the company company in the international markets. keeps up with the trend in the market. I. II. Lifestyle trends affect the operation of The innovation potential of the the company and this is where people company has helped in the are more conscious about fitness and segmentation of the market and this health and this leads to improvement has helped in the improvement of of the sales of the company. company performance (Ramaswamy, Changing consumer attitude 2008). influences the operation of the III. I. II. Competing technology such as the company and this is where the usage of social media has helped in company reviews in the use of child engaging customers and the labor led to a decline in the sales of development of new channels to the company. access markets. The establishment of trust with the III. With the development of technology, consumers from the different reviews there is opening up of global of the media is important as it ensures communications and this creates the that the company avoids the different need to enhance the company types of boycotts from the consumers resources and the expansion of the (Ramaswamy, 2008). company. Threats and Opportunities Threats Opportunities The threats that the company faces from the The opportunities of the company are PEST analysis includes, important in focusing on the competitiveness I. Competition and this is due to the increase in consumer demand due to II. of the company in the long run. I. Technology contributes to innovation the health and fitness trend leading to and this helps in the development of increase in new entrants in the market the products that meet the consumer enhancing competition. needs and preferences. The volatility of the currencies in the II. The changes in lifestyle and attitudes foreign markets leads to the exposure of the consumers creates openings for of the business and this leads to the the company into the emerging market fluctuations of the earnings of the and this helps in the improvement of company creating concern for the the growth of the company through company. increased revenues (Ramaswamy, 2008). References Landrum, N. ...
Purchase answer to see full attachment

Tutor Answer

peachblack
School: UCLA

Please find attached, let me know if you need any clarifications. Thank you.

Introduction

Body

Conclusion


External Analysis to Analyze the
Competitiveness of the Athletic
Footwear, Sports, and Apparel
Industry for Nike Company

Introduction of company
• Nike is a multi-national
sporting shoe manufacturer
• It operates in the athletic
footwear, sports, and apparel
industry.
• The analysis will focus on the
footwear unit
• Main units: footwear business,
apparel segment, equipment
and “other” segment, the
North American segment,
EMEA, Asia Pacific, other
emerging markets, and global
brand divisions

Industry
• Main industry players: Nike, Adidas, and Puma
• Adidas considered as Europe’s largest and most
successful sportswear company
• Focus for industry is suitability, the customization
for style and identity, shoes are also designed for
specific purposes
• Growth triggered by the increasing adoption of
healthy lifestyles
• Innovative design and manufacture by use of
lightweight material and enhanced functionality
footwear for different subgroups.

Industry
• Puma which comes third in
sports footwear.
• Nike revenue of 19.87 billion
dollars in 2016, Adidas revenue
of 10.68 billion dollars and
Puma had 1.71 billion dollars
• Adidas and Puma are the main
competitors of Nike.
• Basis for the competition is
mainly the sales of athletic
footwear and also the
sponsorship of sports teams and
individual athletes.
• Another basis for competition is
the production of lightweight,
eco-friendly shoes that provide
great ergonomics for the users.

Background of Company
• Headquarters is in the U.S.
Beaverton, Oregon and the
company has a worldwide
supply chain for its products.
• Deals with the designing,
distribution, and selling of
sports shoes, apparel, and
sports equipment.
• It has retail stores in over 1142
locations around the world
• Manufacturing plants are
predominantly in Asia: in
China, Cambodia, and
Pakistan (Mahdi et al., 2015).

Mission statement of company
• Nike’s Mission Statement
is
• To bring inspiration and
innovation to every
athlete (Nike, 2018).
• Company aims to achieve
that goals through
innovative design and
manufacture through the
use of lightweight
material and enhanced
functionality footwear for
different subgroups.

Macro environment Analysis: PEST
Political
The consideration of the political environment is
important in enhancing the success of the business.
I.
Nike has gained from the US government policies
that are oriented towards growth leading to
stability in currency exchange and the lowering of
the interest rates.
II. The company has suffered from political wars and
conflicts in the country of operation and this is
especially in the Asian country that has increased
the expenditure of the company (Landrum, 2008).
III. The legislative framework of the country of
operation such as United Kingdom focuses on the
interest of the shareholders creating a favorable
environment for operation.

Social
Social forces of the country of operation are important in
guiding the performance of the company in the international
marke...

flag Report DMCA
Review

Anonymous
Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors