Nike's Company Strategy Is A Clever One

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Strengths • Company owns no factories: Nike’s company strategy is a clever one. While still in school at Stanford, the founder Phil Knight thought that instead of paying Americans to put together Nike’s shoes, Knight believed that it would be best to take their manufacturing plants oversees, to places where the labor would be immensely cheaper than in the United States, for example South Korea and Taiwan. With 86 percent of Nike’s products being manufactured in one of the aforementioned countries and Nike employing a large number of people who lived there, both countries shared in the riches until the founder decided prices were too high to manufacture there anymore. • Global Market Leader: The footwear and sportswear industry causes constant demand for new footwear technology around the world and no company has maintained a share in every major market around the world, like Nike. Nike has the chance to go to countries like India, where the economies and social statuses of people are changing and growing to allow for companies like Nike to sell their products. Despite all of the opportunities Nike has in the industry, competition has been strengthening and the market of fake goods has been growing within the past ten years. • Innovative Culture: The culture of inventing new things is a strong core competency for the Nike brand. The things left for the future by such invention of new things in search of better, lighter, faster product performance changes and

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