Global Sourcing Nike Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Global Sourcing Nike Case Solution

Executive Summary

Nike is the world’s largest company that manufactures footwear, sports’apparel and casual apparels. In the competitive world; the company faced the challenges of the supply chain where it focused mainly on standard, challenging and encouraging the suppliers to analyze the demand and being responsive to it. Nike changed its strategy and worked according to the situation in order to maintain its sustainability. The strategy focused on designing and making the products according to the athletes, and its apparels in the high quality based product. The main focus of remaining sustained is innovation and satisfying the consumers with desired product. The main consideration is making a significant momentum to expand in North America. The other important strategy of Nike is to create a relationship with the professional Athletes and understand the issues regarding athlete’s apparels. The company stated that it does not want that the athletes to just win but to be also connected with it. This strategy for market development and the campaigns run by the company, gave success to Nike and it ranked on the 26% of the world’s recognized global brand. The other most important strategy of Nike is outsourcing. The CEO believed that making the footwear can be made at a lower cost and can be sold at cheaper prices. This strategy made the company successful as compared to other brands like Puma, Adidas, etc. The company generated high profit by outsourcing it to the Asian suppliers. Nike is like other typical companies, but the main benefit of high selling is because of the sourcing to the Asian suppliers. Nike changed its strategies according to the customers’ needs and choices. Other changing aspect is selling the product sat cheaper prices by having a cost-effective strategy. Nike made the strategy of market penetration and manufactured products for all rather tham limiting them to elite class.Nike’s market capitalization is higher than other brands because of such strategy. Another important factor which is different for the modern world practice is that the company first analyzes the working conditions and aninternal audit is done. After that, it analyzes the market condition and the supplier's code of conduct that to know if they match with the company’s condition or not? After all the assessments, it makes the monitoring and controlling policies. There was an argument in the press that the products are of the slave wages and are made in the worst working environment. The CEO of the company in response to such allegations stated that we would not prefer that our consumer wear such apparels or footwear’s which are made by the human exploitation or in worst environment. This implies Nike's strategy that worked not just for maximization of revenue but the human care and its betterment as well. According to the current business practices; the companies just work for the sake of profit and market capitalization. On the contrary, Nike has the strategy to attract its consumer by keeping the well-being of its labors under consideration as well. This strategy not just generates higher sales but also strengthens the customers’ relationship with the company. Considering the other factors in the case that in Malaysia, the most human trafficking practices were done; the company made the policy of having a complete verification of its employees’ identity a mandatory process, in which the passports of the employees were checked before being recruited.Nike’s main focus is on cost, quality, sustainability and supply chain of its products, globally. Nike is ranked higher in the industry because making its strategies according to the current scenario. It believes that customer is the priority and the their expectations are ought to be fully satisfied. Because of making some policies according to the law and condition; the company had to lose many of its employees in different countries, but it is now trying to overcome the loss and has made its position sustainable in the market. Moreover, the company’s strategies for its laborers and employees are well-planned and provide a healthy working environment for them.Health, safety management and the best quality are the company’s top priorities. It is not wrong to say that the sustainability of Nike is different from the contemporary business world practices and that’s the main reason behind its high market revenue and customer satisfaction............................

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