Strategic Management

Undergraduate
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Business
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The company’s headquarters is in Portland, in the United States. Nike is the primary manufacturer of sportswear and sports equipment with reported revenues in excess of 19 billion dollars…

Introduction

The company’s mission statement claims, “To bring inspiration and innovation to every athlete in the world.” In a statement, Bill Bowerman, who is among the founders of the company, states, "if you have a body, you are an athlete” (Nike 2014). Nike integrates Bowerman’s statement as part of the company’s mission statement.
Among the key values of the company is its aspiration “to deliver growth in the right way” through the development of sustainable strategies that are capital-efficient, profitable, and enhance the company’s brands(Nike 2014). These are among the company’s core values of developing brand-enhancing initiatives. Despite Nike’s stand on brand-enhancing initiatives, its production and growth strategies were harming the company’s image. The labor crisis in Indonesia almost destroyed Nike’s corporate image (Braddock 2011)
The company’s use of contracted sweatshops was among the issues that contributed towards the development of a negative image towards the company. Nike took measures aimed at enhancing the company’s brands and its market sustainability including aiding the creation of the Fair Labor Association (Nike 2008). Consequently, the emergence of issues concerning practices in its affiliates factories led to comprehensive audits of its factories across the world. Though various issues emerged after the audit, Nike has since taken measures to prevent the recurrence of such issues in the future.
Rindova & Kotha (2001) contend that firms co-evolve their organizational form and function to maintain a competitive edge in a dynamic environment.Nike’s competitive strategy is the unique differentiation of its products and focuses on sustaining the brand to grow its operations across the world markets. The organization’s growth depends on strategies that focus on enhancing the core competencies in ...
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