Nike

In addition, the company also markets the casual footwear under its Cole-Haan subsidiary. Recent product or service introductions have left the core athletic shoe company and include sports clothing, additional casual shoes, and hiking shoes.

The domestic footwear market encountered four many years of stagnation which are just now beginning to end. During that time, Nike adopted a strategic position of maintaining low inventory levels, in the result how the company kept low inventory costs, but also is in a position to lose capability sales (Dukesherer 4). Sales declines during the company's overseas markets, for example France, Germany and Japan, also have put downward pressure over a company's overall growth and income potential.

Another capability weakness stands out as the company's use of contractors, primarily located during the Far East, to manufacture its goods. Some countries have strict tariffs and quotas with regard to American shoes, and some legislators are looking for similar, retaliatory measures against goods built in these countries. While Nike is an American company, its shoes are made from the Far East and it may perhaps fall victim to greater quotas and tariffs once it imports shoes. There's also elevated tension in some of these nations wherever the shoes are manufactured; internal commotion could jeopardize production. Currency fluctuations also can play havoc of the company.

The business has produced its markets to this issue on technological breakthroughs. The pump shoe, for example, even though considered a gimmick by some, has resulted in elevated sales, as well as the advertising and marketing campaigns which surround the shoes have increased brand recognition.

The company recognizes that it cannot depend on any 1 market segment nor on any 1 geographic industry to meet its expansion and financial goals. Instead, it need to build on its success, discover opportunities in related industries, and use those people opportunities to meet the challenge of continuing to expand its industry share. Through shrewd management, an organizational environment which encourages innovation and stresses contribution to the company, and by fostering an environment wherever core values of keeping costs low whilst expanding industry share, Nike has demonstrated an capacity to dominate the markets in which it operates. By carefully evaluating emerging opportunities, the company has also demonstrated an potential to spot lucrative emerging markets that tie in well with the company's core businesses.

The business continues to have as its goal maintaining its dominant position as the world's leading supplier of leisure footwear (Landes 1). It has reached this position through a strategy of expanding to overseas markets and establishing a manufacturing presence in overseas markets. The company operates with a powerful focus on its financial performance, and takes steps to retain powerful operating and profitability ratios. By increasing sales volume, implementing tighter price controls, continuing to use Asian sources for manufacturing and implementing stringent inventory measures, the business expects to continue to keep its position inside market.

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