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MCR008A Corporate Strategy Assignment Sample

Choose ONE business from the companies listed below. All are clear leaders in their industries, although all have strong rivals.

Nike
Apple
Allianz
Costco
Netflix
Starbucks

Analyse the business that you have selected, identifying the company’s core competencies, resource capabilities and outcomes. Evaluate those characteristics against of ONE of its competitors. Students will need to demonstrate an in-depth knowledge and practical application of key business theories, concepts and models addressed during this course. This assessment must be in an essay format and 1,000 words (approx.) in length.

Solution

Introduction

Nike is selected as a core company in order to identify its basic factors and analyze its business cases. To identify Nike’s core business factors including competencies, resource capabilities, and corresponding outcomes, an in-depth analysis has been done. According to the current market environment and customer needs, Nike is facing some competitive challenges from Puma, Adidas, and other similar brands. An essay is written to demonstrate the key theories, concepts, and models of Nike's business. In this manner, a comprehensive description is articulated including a business overview, core competencies, resource capabilities, and past & predictive business outcomes.

Essay: For the Case of Nike

Business overview

The company Nike Inc is a USA-based organization that was practicing the design, development, and manufacturing operation of majorly athletic footwear, accessories, apparel, and other equipment(About Nike 2022). The company was started in 1964 with the name Blue ribbon sports, they started with the sale of imported shoes, and the sale of suchlow cost but high-quality shoes showed them thatthe alternative of so-called named brands like Adidas and PUMA is possible. The work quality and correct business strategy implemented by Nike made it the largest worldwide athletic footwear company(Business Strategy Hub 2022). The company latest in the fiscal year of 2022 generated a revenue of approx. 10.9 billion dollars which is approximately 5% greater than the last year's revenue generated. The Digital sales of Nike is even increased by approximately 20%. The increase in profit and revenue by the company shows that the customer alignment is keep on increasing towards the company(About Nike 2022). The essay is designed to obtain an idea about the business strategies of Nike. The essay will limelight’s the competitors of the company and will show the core competencies, the resource capabilities, and the outcomes(About Nike 2022). The essay for assignment help will provide a comparative analysis between Nike and its core competitors.

Core competencies

The growth cannot be defined from a single parameter and hence the same is with core competencies. The parameters like Team diversity, work culture, manufacturing standards, and customer relations define the overall business strategy(Pratap 2018). The overall strategy will lead the business in the performed direction. The study about the company shows that the core strategies followed by Nike are oriented towards their customers. Their current strategy is the involvement of sustainability in the operations of the company like manufacturing and innovations(Pratap 2018). Their Diversity in the team, strong department of Research and development, and high standards for quality control separate them apart from their core competitors. The other competitors in the market like Fila, Puma, Adidas, New Balance, etc. The diversity among the board members promotes asense of belongingness among customers. The Puma suffers a loss in 2020 due to this non-diversity among board members. The other benefit that Nike takes over other competitors is due to its best marketing practices. They involve sports athletes to connect emotionally to their customers and maintain the up mark of the quality of their products. They invest more, produce more, and hence earn more consumer trust and income(Morgan et al. 2019). Unlike the other athletics product companies,Nike focuses more on selling touchy stories than the amazing products. Nike has always created a sense of belongingness among their customers. This has helped Nike to raise the company to heights of success.

Resource capabilities

There are various pillars that are covered in the criteria of resource capabilities, which support the organization sustainably. These include customer loyalty, innovations in products their manufacturing and marketing capability, funds, market distribution, and customer base. The SWOT analysis performed on the Nike results in the following results:

Strength: The brand image and value that Nike has created makes it representable among the other customers. The high brand name does not only mean high popularity but also makes it a trustable brand. Another factor is its financial strength and marketing strategy. The financial strength of the company in the USA and the global market is much more than its other competitors in the market. The other factor that came out is its presence visibility in the international market(Paul et al. 2019).
Weaknesses: The dependency of the company is mostly on the US market. The revenue generated by the company is dependent on the US market. The company has high overseas marketing expenses.

Opportunities: The other opportunity that Nike can take advantage of is acquiring other companies and using them for manufacturing their product. Since being an Athletics product giant in the market Nike possesses enough capital and resources to acquire other companies(Pratap 2018).

Threats: The Competition in the market keeps on rising, and hence Nike also needs to work in the same sequence to raise its value in the market, to beat that competitor in such a diversifying and challenging market. The Expenses of the company are also increasing on the marketing side so to cope with them parallelly the company needs to pay more attention to the side of financial management.

The resource capabilities of Nike can also be assessed using below table-

Table 1: Resource Capability Table

(Source: Pratap 2018)

Past and predictive outcomes

The company’s past information regarding its revenue generation in the financial year 2017,2019, and 2020, shows that the company is a profit-making organization and ruling in the hearts of its customers(Pratap 2018). The company compared to its other competitors is leading and its financial statistics show that. An article shows that it has a 6% growth in the year 2016 and rise to 34.4 billion dollars in 2017. In 2017 the company has a total of approx. 750 retail stores overseas. Adidas which is a shoe giant in the world, and a large competitor of Nike reports a revenue of 21.218 billion euros in the year 2018,and in the same financial year, Nike has earned a considerable profit(Pratap 2018). Nike has reported an overall increase of approx. 5% in the first quarter of FY 2022. The profits are the results which are showing the result of Nike’s work and in the same sequence, Nike is progressing. The stock forecast on Nike also recommends the purchase of Nike shares which shows the positive outcomes from the company’s side.

Outcomes

So, it can be said that Nike when came to market with a business idea, defeated their competitors who were already well established in this business, they have not only achieved the market trust but also used correct business strategies to execute their operations. Thus, the innovation, competitiveness, and revenue growth of Nike are shown below-

Figure 1: Nike's top performance based on innovation
(Source: Stevens 2020)

Figure 2: Competitive Value
(Source: Stevens 2020)

Figure 3: Revenue Growth
(Source: Stevens 2020)

Conclusion

As per the identification of different business factors of Nike and analysis of its business competencies, resource capabilities, and significant outcomes, the overall conclusion affirms that Nike focuses on robust and high-level business strategies through which they become capable to satisfy customer needs. Other similar worldwide brands like Adidas and Puma have been also in the race of becoming top market brands but Nike has strategic business tactics that help them to present their products with high quality in the form of the latest fashion and customer-specific. It has been also concluded that constant innovations in Nike product is the USP of this company which enabled them to obtain customer values, market trust, competitive advantages, high revenue growth, and future stability.
 

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