He also spent seven years with Kraft Foods Inc., working in brand management and new product development, and five years in the U.S. Navy as a Naval Nuclear Power Officer. Nike Success. Overall, NIKE emphasizes the key differentiation strategy on its branding, customer services, product quality and innovations. Nike has set business plans through strate… Malkiel previously served in various senior management roles across the company, including VP, Global Product and Merchandising Operations Analytics and VP, Product Strategy. Varadarajan, P., & Dillon, W. R. (1982). Diversification can support Nike’s generic competitive strategy of differentiation through new businesses that supply materials for product innovation in the athletic shoes, apparel and equipment business. Ann Hebert and Angela Dong will remain the VP/GMs, North America and Greater China geographies, respectively. The leadership changes, combined with a strategic alignment of NIKE’s operating model against the CDA, will create even greater focus and agility that will be enabled by a nimbler, flatter organization in service of consumers. Pricing strategy: Nike has value based/price leadership strategy that offers the customer with the price that customer value so it has high prices for its products as it has niche market to serve with One of Nike’s supporting intensive growth strategies is market development. In the late 1990s, Nike reduced costs and the selling prices of its athletic shoes and other products. Business Level Strategy: Nike's Generic Strategy (Porter's Model)Nike Inc. uses a combination strategy for its competitive advantage. 31% of the global athletic footwear market. The management employs strategic management components such as vision, environmental analysis, strategy creation, strategy implementation, and strategy assessment (Nike, Inc., 2009). For example, Nike increases its stores and retailers in the United States to sell more athletic shoes to American consumers. Although the brand is big on positivity, Nike motivates employees as well. Announces Jim Scholefield As Chief Information Officer June 04, 2015 – In this role, Jim will be responsible for leading NIKE, Inc.’s technology strategy to support the company’s future growth. Results of Nike's new Customer Experience distribution strategy in place for over a year in a study by Euromonitor. These leaders will report to Michael Spillane, who becomes President, Consumer Creation.*. Competitive Advantage Through Information-Intensive Strategies. For example, Nike’s mission statement highlights innovation applied through new designs for shoes and related products. Founded in 1964, Nike Inc. has grown to become one of the biggest players in the global athletic shoes, apparel and equipment market. Nike's Strategy to Become the Leader in their Market. Currently, Uzzell serves on several boards, including the SC Johnson Company and the Greater Boston Chamber of Commerce. In product development, these products remain attractive despite changing consumer preferences. The main of the Nike Company is to produce lowest cost and distributes to suppliers in the industry. Thus, this intensive strategy supports Nike’s differentiation generic competitive strategy via product innovation. Organizational Structure Characteristics (Analysis), Nike Inc. Five Forces Analysis (Porter’s Model), Nike Inc. Malkiel most recently served as VP/GM, Specialty Categories (Golf, Tennis, NIKE SB). The following are the generic competitive strategies implemented in Nike’s combination strategy: Nike’s cost leadership generic strategy sustains competitive advantage based on costs. The CDA will create a more premium, consistent and seamless consumer experience across NIKE’s owned and strategic partner ecosystem, align around a new simpler consumer construct and also unify investments in an end-to-end technology foundation to accelerate our digital transformation. In conjunction with Denson's decision to retire, the Company also announced strategic changes in its executive management team as part of the Company's long-term organizational strategy to align the business to continue to drive growth. Disclosure: I own shares of NKE For years, US sports gear maker Nike, Inc. (NYSE:NKE) has delivered superior sales and earnings performance, handsomely … Uzzell is also a member of the Executive Leadership Council and the Florida A&M University Foundation Board. Driving continued growth across the NIKE, Inc. brand portfolio, Craig A. Williams, President, Jordan Brand, and G. Scott Uzzell, President & CEO, Converse Inc., join NIKE’s Executive Leadership Team reporting to John Donahoe. G. Scott Uzzell, President & CEO, Converse, Inc., joined NIKE, Inc. in January 2019 from The Coca-Cola Co. where he most recently served as President, Venturing & Emerging Brands Group (VEB), leading the identification and development of a portfolio of high-growth brands for The Coca-Cola Co. Uzzell began his career within sales and marketing for companies such as Procter & Gamble, Coca-Cola and Nabisco, before returning to Coca-Cola in 2000 in the Strategy & Planning division. Prior to NIKE, Grebert worked in marketing and finance roles for Unilever and The Coca-Cola Co. Sarah Mensah, VP/GM APLA, most recently served as VP/GM, Sportswear in APLA. In this generic strategy, the company minimizes production costs to maximize profitability or reduce selling prices. The corresponding intensive strategies grow Nike’s global sports shoes, apparel and equipment business. Dowers has played a key role in elevating and evolving many strategic wholesale partnerships in the U.S. and globally. Nike is one company that revolves around motivation. Nike is making changes to its senior leadership team and expects employee layoffs as part of its new digital-focused business strategy. This intensive strategy involves the introduction of new products to grow sales revenues. However, market penetration is just a secondary intensive growth strategy because the company already has significant presence in the global market. Whitney Malkiel, VP/GM, Women’s, is a 17-year NIKE veteran. Click here to read the full article. Diversification. Nike Inc. uses a combination strategy for its competitive advantage. Merchant, H. (2014). The generic strategy trap. Diversification is the least significant in Nike’s intensive strategies for growth. 2015-11-14T15:30:00Z The letter F. An envelope. Nike works to keep their supply chain and production costs as low as possible; however, that is the extent of their cost consciousness. * The marked paragraph contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. New evidence in the generic strategy and business performance debate: A research note. Mensah joined NIKE in 2013. With the strategy, Nike intends to ramp up investments in e-commerce and technology, as well as simplify its “consumer construct” of men’s, women’s and kids’ businesses. Also, Nike’s differentiation generic strategy provides unique products. For GDPR compliance, we do not use personally identifiable information to serve ads in the EU and the EEA. Table 6.9 from the text covers when Function is Aligned/Misaligned with Cost Leadership Strategies. Read full article. 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