Competitive advantage is when a firm is able to create more economic value than its rival or competitor firms. Economic value is simply defined as the difference between the benefits and the cost a customer received when purchasing a firm's products or services. When I think competitive I think competition, competitor, athlete, and the Nike! Nike partners with the top athletes in the sports industry and is known for their superior quality products and high end brand. According to Panos Mourdoukoutas of Forbes magazine, Nike's competitive advantage can be summed up into 5 categories - the company's brand, scale, scope, customization, and innovation. Nike has a well known and positive image amongst its consumers, its revenues almost double Adidas its closest competitor, it has a broad scope of product offerings in the sporting goods and apparel market, it allows its customers to customize all Nike gear, and the lead the industry in apparel and sporting equipment innovation a...
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
Nike's organization structure is divided geographically. Since Nike is a global company, this structure helps it effectively manage its international and domestic markets. The company has global corporate leadership as well as semi-autonomous geographic divisions. This model has benefits as well as drawbacks. The benefits are that this model helps to foster growth and stability as the global leadership can manage and control the entire organization, but the semi autonomous division enjoy the flexibility that comes with smaller scale regional management and consumer tailoring. A drawback, however, is some limits when managing the company's large subsets of the company such as Converse. http://panmore.com/nike-inc-organizational-structure-characteristics-analysis
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