Nike Competitive Advantage - 1089 Words

* 1. MGMT65000 – Strategic Management – spring 2011 Test 1 By: Divya Mishra School of Management Purdue University Calumet Submitted to: Dr. Arifin Angriawan1|Page * 2. Company profile amp; backgroundNIKE, Inc. is engaged in the design, development and worldwide marketing of footwear,apparel, equipment and accessory products. . It sells its products to around 18,000 retail accountsin the United States and through a mix of independent distributors, licensees and subsidiaries innearly 200 countries. NIKE is the largest seller of athletic footwear and athletic apparel in the world.The Company creates designs for men, women and children. The top selling product categoryincludes running, basketball, childrens, cross-training and womens†¦show more content†¦NIKE Innovations NIKE with Apple: The NIKE+ package consists of a pair of specially designed NIKE+ running shoes, an iPod nano, and a NIKE + iPod sport kit. The kit consists of a sensor that fits into a built-in p ocket beneath the insole of the left shoe and a receiver that fits into the iPod nano dock connector. As a person runs, iPod tells the distance, pace, and calories burned via voice feedback that adjusts music volume as it plays. (Google image) Design your own shoes: NIKE allows customers to design their own shoes from a catalogue of predefined designs. Customers can choose their own colors and mascots to create shoes which define their personality. It provides Touch screen technology in store allowing customers to design shoes of choice. (Google image) Nike self lacing automatic shoes: NIKE is also coming up with the new automatic self lacing sneakers. The automatic lacing system provides a set of straps that can be automatically opened and closed to switch between a loosened and tightened position.4|Page * 5. Critical data of Nike Annual Report$ Millions 2010Net Income 1,906.7Current Liability 3,364.2Total Assets 14419.3Tax Rate 24.2%Interest Rate 6.35%Long-Term Debt 445.8Return on Equity 19.54%Total Equity 9753.7Weighted Average Cost of Capital 8.9%Capital Employed 11055.1Interest Expense 6.3EBIT 2516.9NOPAT 1907.81Return On Capital Employed 20.7%Economic Value Added 1267.25Cash Flow From Operations* 3164.2Capital expenditure*Show MoreRelatedNike s Offensive Competitive Advantage1206 Words   |  5 PagesOffensive Competitive Advantage There are numerous definitions of competitive strategy; whether, it was defined by a scholar, a textbook, or a dictionary source, it is not the same. A source may refer to this subject as a competitive strategy or a competitive advantage. Therefore, this subject is difficult to understand and then apply to a company. The Five Generic Competitive Strategies that Michael E. Porter developed are not really five strategies, more like five with subsets under them. Nike doesRead MoreBusiness Strategy Concepts Nike Inc.1034 Words   |  5 PagesStrategy Concepts amp; Nike Inc. Nike generic strategy for competitive advantage emphasizes product mix diversity. Nike analyzes what products should be handled and what characteristics should meet to aim success. When applying a competitive strategy, the product plays a role as a link between supply and demand, so the success is determined by the ability of the company to overtake the competition and of course, by the quality of the product from the client’s perspective. Nike adapts their productsRead MoreNike s Core Competency : The Risky Business Of Fairy Tales1413 Words   |  6 Pagesscandal such as criminal activity or cheating. Nike has been successful with any of their endorsements, but there are cases of athletes not so successful. In Nike’s endorsement history, there are multiple cases that athletes were involved in scandals. 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