Middle Management Strategy Process Research For Nike Shoes In Australia

Organisations vision

Discuss about the Middle Management Strategy Process Research.

The project deals with the organization of Nike shoes in Australia. Nike shoes are reputed brand of manufacturing highly durable and quality shoes in the world and they are reputed as manufacturing high quality shoes in the world.

The vision of the Nike Organization is to manufacture the best quality shoes in the world and to make the name of Nike organization resonate with excellence and innovation. Nike is a gloabally recognized brand due to their emphasis on excellence and in manufacturting the best quality products for the clients and the customers.

The mission of Nike shoes states that they are driven by everything which is possible in order to expand the human potential. In order to do this, they create groundbreaking innovation in sports and promote their products by enabling creative and sustainable production of their products and creating a postitive impact in the world communities through their products (Schlegelmilch, 2016).

The organizational values focus on the aspect of innovation,creativity and sustainable development of their manufacturing process. The Nike organization emphasizes on the drive for creating everything which expands the human potential. The Nike organization is a highly disciplined as well as efficient organization which gives enough emphasis on the aspects of developing their products through the efficient management as well as systematic approach to design their footwear.

• Competitor 1: Adidas footwear

• Strength : Adidas is a company which focuses on the aspects of diversification of their products as well as manufacturing excellent products which are highly valued and esteemed in the modern world. The adidas company is a global brand and it its brand value is immense in the global world. The Adidas company hires the global sporting celebrities to promote their products and therefore they are considered as a youthful product in the world.

• Weakness: The greatest weakness of Adidas company is the price range which is unaffordable for the common lower middle class people. The products of Adidas are manufactured in the outsourced manufacturing hubs which are mainly in the Asian countries where the labor cost are cheap and the labour is easily available. Adidas lacks in the product line expansion as the company has less number of brands which are manufactured under its production hubs

• Competitor 2: Puma organization

• Strength : Puma is considered as one of the main competitors of both the Adidas as well as the Nike organization. This is due to the fact that the Puma organization spends heavily in the promotion of its brand’s products. The organization hires global celebrities such as Diego Maradona, Olivier Giroud as well as Marco Reus to promote its products. Puma has a high growth rate and there has been a relatively higher increase in the sales and the revenue of the products.

• Weakness: Puma faces high competition from both the Nike as well as the Adidas companies and these companies are bothy excelling in their respective areas. The other weak areas of Puma are that in comparison to the other organization such as Adidas and Nike, Puma has a less revenue generation in comparison to both Nike and Adidas.

• Strength

Nike is considered as the world’s most reputed shoemaker. Its emphasis on the design as the innovation which the organization employs in the manufacturing of the shoes is the most effective feature of the organization. The Nike shoe company also specializes in the manufacture of the highly durable sports wear and it does thorough research before implementing those designs in the manufacture of the shoes. Nike has a dedicated and an efficient research and development team and does innovation in the manufacture of the shoes. Nike is considered as a global brand and is considered as the top sports brands in the world.

• Weakness

Nike has a revenue which is highly dedicated and efficient and is dependent upon the share of the footwear market. The retail sector of Nike is very sensitive to the price of the footwear. The income of Nike is derived from the revenue generated by the retailers.

• Threat

Nike is highly exposed to the international aspect of trade and it is engaged in the transaction of the different currencies. Nike manufactures its products in the different countries of the world and it becomes difficult to estimate the actual cost incurred in the manufacture of the products. There are many alternative products launched by different companies which are giving tough competition to the Nike organization.

• Opportunities

Nike is known for the product development and the development leads to the arising of opportunities for the development of new products (Fiksel, 2015). Nike emphasizes heavily on the research and development aspect and the products which emerge out of such research are highly durable and flexible in the usage and elasticity.

• Strategic objectives 1:

• Strategy needed 1: Increase in the sales and revenue generation

Responsible party/person: Stakeholders

KPI (measurableperformance indicator): Financial and non-financial

• Strategy needed 2: To develop the innovation of the products

Priority: Prioritising the needs of the customers and the clients

Timeframe: 1 year

Responsible party/person: Shareholders and the stakeholders

KPI (measurableperformance indicator): The financial and the non-financial aspects.

Nike follows a generic strategy for exploiting its competitive advantages and focuses on the marketing mix strategy (Rothaermel, 2015). The Nike follows the Porter model to develop its strategies and evaluate its performance.

• Political environment:
  • The Nike has operates in a stable political environment and has its presence in the major markets of the world.
  • The expansion of the free trade policies also affects the company.
  • The improved government support also becomes possible for the company to achieve the target of achieving the target of achieving the sales revenue generation.

• Economical environment:
  • The Nike organization focuses on the rapid growth of the developed markets and the international political factors like the Slowdown of the Chinese economy directly affects the Nike organization (Burgleman, 2017).
  • The economic  stability of the developed markets also becomes beneficial for the organization

• Social environment:
  • The increased individual wealth in the developing countries is a big opportunity for the social environment.
  • The Nike organization emphasizes on the product safety.

• Technological environment:
  • The Nike organization emphasizes on the Research and Development of the products (GalbRaith, 2014).
  • The widespread usage of the mobile technology is the best opportunity for the Nike organization.

• Situational awareness

1. Risk assessment

• The Asian countries have a huge market for the substitute products of Nike which are relatively cheap. Asian countries have huge population of middle class population hence the Nike products are not affordable by the majority of the population.

1. Special tactics

• The Nike organization can lower  the prices of their products in the Asian countries and develop a customer base for themselves in these regions.

The Nike organization must be summoned to meet in order about the changes in the working of the organization. The Nike organization must discuss the actions and strategies of the rival companies and make plans to counter those plans.

Conclusion:

The Nike organization is a highly efficient and developed team which has always emphasized on the development of the products and the services they  provide to the people in the different countries wherein they operate. The Nike organization emphasizes on the aspects of innovation and development and is considered as a globally reputed brand in the world.

Reference

Burgelman, R. A. (2017). 9. Complex strategic integration at Nike: Strategy process and strategy-as-practice. Handbook of Middle Management Strategy Process Research, 197.

Fiksel, J. (2015). Organizational Resilience. In Resilient by Design (pp. 129-147). Island Press, Washington, DC.

GalbRaith, J. R. (2014). Organizational design challenges resulting from big data.

Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.

Schlegelmilch, B. B. (2016). Organizational Design for Global Marketing Strategy. In Global Marketing Strategy (pp. 177-193). Springer, Cham.

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