Question:-

In 250-500 words, give an overview of the company, describing their business, brief history, and your initial thoughts on the organization’s strategy and business model.

Answer:-

Nike is a apparel and shoe company, it develops, designs and sells a wide range of products to assist sports persons playing football, basketball, men's and women's training and other action sports. In addition to this the company is also promoting its sports inspired products for kids and different types of recreational and competitive activities (Yao, 2019). Nike also sells sportswear under the Converse. The organisation is generating more than 60% of total sales outside US, sells through more than 1,090 owned retail stores all over the world. The company also has a e-commerce website, thousands of retail accounts, independent distributors and licensees.

Operations

Nike branded products which are holding 95% of the total revenues are segmented into six categories, Nike Basketball, Running, The Jordan brand, Sportswear, Training and Football. Nike apparel accounts for around 30% of sales and other products of Nike such as sport balls, socks, digital devices, eyewear, timepieces and other designed for sport activities adds almost 5%. Converse and other brands contribute the remainder of revenue.

Geographic reach

Nike is based near Beaverton, Oregan, it has a is develop in more than 400 acre area with more than 40 buildings. It also has regional headquarters in Hilversum, the Netherlands and Shanghai in China. The company has subsidiaries and branch offices in more than 50 different nations. Nike is generating nearly 40% of sales in North America with another quarter in Europe, Africa and Middle East (DOMINGUEZ, 2020).

Sales and marketing

Nike generates about two third of sales from wholesale customers for instance retail accounts, footwear, sporting, athletic specialty stores, department stores, sales representatives a d independent distributors. It is also selling products directly to customer through a strong global network.

Strategy

The strategy of Nike is to attain long term revenue growth by developing unique and innovative products, and establishing deep personal consumer relationships with its brands and offering excellent consumer experiences through various digital platforms. Since new fiscal policy 2018, through the consumer direct offense and Nike's triple double strategy. The organisation is focusing upon the impact of innovation, agility to market and growing its direct relationships with consumers.

Nike's mission and vision statement

Improved vision and mission for Nike

Vision - "To become the best sports and fitness wear company in the world"

Mission - Every day, we aim to work effectively to develop and sell the best fitness and sports product globally by offering the best consumer experience and services in a sustainable manner. Our mission is to provide the best authentic products to the customers and becoming to top sports brands by enhancing customer engagement and satisfaction.

Characteristics, qualities and components of new vision and mission

The improvised vision and mission incorporates several significant characteristics such as becoming the best sports and fitness wear brand all over the world. It includes a competitive attribute which aims at enhancing quality and performance of Nike. On the other hand, the mission of the company comprises elements such as consumer experience, sustainability along with customer engagement and satisfaction. Consumer experience is important nowadays, it helps in attracting more and more customers. They remember good as well as bad experience with every product or brand they choose and consume. Customer engagement and satisfaction is also very essential to improve the brand value in the market. Knowing the customers and providing the most satisfactory services to then is a key to success.

Importance of vision and mission

Vision and mission are very much essential for Nike to promote its products and services globally and stay competitive. By specifying the aim and objectives the company can create respective strategies and tactics to achieve the same. It is necessary to have a path that can be followed in order to reach out to a set goal.

Reason for choosing the new vision and mission

By following the improvised vision and mission Nike can have a clear sense of purpose, it means that the company may have a larger picture of its business and business practices. Nike can create short term goals and resolving issues as they comes in the path of achieving these goals. When a clear vision is defined within an organization, it helps in providing a common interest or provides a gathering point. Setting a vision to be the best brand in the world is ambitious which can help in motivating the workforce and can enhance the performance of the overall business. It can help in driving or boosting the competitiveness in the business practices as it becomes necessary to be more effective and efficient than other competitors in the market. This new vision will enhance the view of the company and its employees, it will encourage Nike to develop short term objectives with the main aim of achieving the vision that is to be at the top. It will promote innovation in the organization to design and develop best quality sports and fitness products (Courey, 2019).

In addition to this, the new mission includes customer experience, engagement and satisfaction. It is necessary for Nike to focus on enhancing customer experience rather than focusing only upon sports persons or athletes, the company should try to improve the experience of all the customers. This can be done by providing new ways of shopping such as VR technologies that are very much influencing in the present marketplace. Customer engagement, on the other hand also plays an important role in improving the performance and profit of an organization. It will help Nike to identify the needs of people who are not much into sports but like the brand and want to buy Noel products. Getting engaged with all types of customers is important to develop new products and services.

References

Courey, A. K. (2019). The Effects of Social Activism on Business Strategy and Revenue as Observed in the NFL and Nike Consumer Trends (Doctoral dissertation, University of Oregon).