Chapter 10 - Vertical Integration - 11/4

Vertical integration is the number of stages in a product or service's value chain in which a particular firm engages.In 2016, Nike partnered with Apollo Global Management to establish a new supply chain for their apparel division.With the guidance of Apollo the plan was to invest in suppliers and acquire additional textile and apparel firms in hopes creating a more vertically integrated supply chain. With this new model, they project to see an improvement in product capabilities and delivery times. 

Image result for apollo global and nike


https://www.cips.org/en/supply-management/news/2016/august/nike-announced-supply-chain-strategic-partnership/

Comments

Post a Comment

Popular posts from this blog

Chapter 7 - Product Differentiation - 10/14

Image
Product differentiation is present when consumers perceive a certain firm's product to have more value than another firm's product. While their offerings may have very subtle to extreme differences, it all comes down to consumer perception. it's all about standing out from the crown. Niek sets itself apart by offering high quality sportsware that is deemed to  be top of the line or exclusive to only the best athletes. This perception makes consumers willing to pay higher prices because they perceive that they are paying for a higher quality product as a result of the brand name . Nike is considered the standard. They are selling an ability, not just a product. Consumers believe "if you have x Nike product, you will perform better". This strategy is very effective. https://www.cleverism.com/stand-crowd-examples-differentiation/
Read more

Chapter 15 - International Strategies - 12/3

Image
Nike is an international company that has over 1100 retail stores worldwide, employs over 70,000 people, and serves as hte world leader in athletic footwear and apparel. Nike has acquired many footwear and clothing companies over the years including, but not limited to,  Cole Haan, Bauer Hockey, Converse, Hurley International, Starter and Umbro. Nike's international strategy is its effective worldwide marketing campaign.s With this the company creates sponsorship agreements with the world's top sportteams, athleters, celecrities, and college athletic programs as well. They give these groups tons of nike branded equiptment, gear, and technology to promote their brand and serve as the most visible sporting good company in the wrold. https://www.statista.com/statistics/250287/total-number-of-nike-retail-stores-worldwide/
Read more

Chapter 13 - Strategic Alliances - 11/25

Image
Nike formed a Strategic alliance with Apollo Global management in order to shift its apparel supply chain to a more vertically integrated model in the Americas. This partnerhsip will increase regional manufacturing capabilities, and decrease delivery times to consumers. The company acquired new apparel and textile suppliers to achieve this as well as broaden and diversify its offerings and abilities. https://news.nike.com/strategic-partnerships
Read more