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Business Studies 17 Pages

Nike Organizational Analysis

Question

An organizational analysis: Nike

Solution

Title: Nike Organizational Analysis
Length: 17 pages (4675 Words)
Style: APA

Preview

Nike’s Mission, Vision, and Values.

            Nike’s mission is aimed at “bringing inspiration and innovation to every athlete in the world and if you have a body, you are an athlete” Nike Inc (2014) while its vision is to "to help Nike, Incorporated and our consumers thrive in a sustainable economy where people, profit, and planet are in balance" (Nike Inc, 2014). The company’s values are to deliver growth in the right way, and all employees are expected to reflect the company’s loyalty, honesty, trustworthiness, concern and fairness for others.  The company aims for a growth strategy that is capital-efficient, sustainable, profitable and brand-enhancing.

Nike’s Business Segmentation

            Market segmentation is the division of the market into relatively homogeneous segments of customers. According to Houtman (2009), Nike has segmented its operations in a variety of ways and these include;

a)         Sociocultural Segment

The company leverages on the fact that people with similar lifestyles and behaviors tend to buy similar products. Sociocultural influences are hence categorized as interests, activities, and opinions. For example, the youths view Nike as a fashion trend and will buy it in order to follow the fashion trend. People actively involved in sports will buy Nike products because they trust in the quality of the products.

b)         Technology Segment

            The company relies so much on technology to drive the sales of its products. In fact, the company has a section dedicated purely towards innovation making use of the latest technology. For example, NikeID allows customers to design and personalize their merchandise online.

c)         Economic Segmentation

            Nike applies economic segmentation in its business model by dividing the market into high, medium, and low-income groups. The product offerings in these markets will, therefore, be a reflection of their income status.

d)         Political/legal segmentation

            The company considers politico-legal issues like taxation laws, antitrust laws, and labor training regulations before it sets shop in any region. It generally is on the lookout for laws that are favorable to its business model.

e)         Global Segment

            The company focuses on the political events in a country in addition to factors such as industrialization level, cultural and institutional characteristics and the criticality of the market before setting up shop.

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