Nike incorporation is a multinational corporation that deals with sportswear apparels, accessories, and sports equipment. I am familiar with this company as it is the world’s largest supplier of athletic shoes and sports equipment.
The company has an internal organizational structure that facilitates the regionalization of its business strategies assisting it address consumer preferences. The company has a geographical divisional structure with several characteristics. The structure includes global corporate leadership, semi-autonomous geographic divisions and global divisions for converse brand licensing(Clarioni, Giulio " Luca,p.27). The global leadership groups include the office of the president, Nike brand, finance, administration "legal and global sports marketing. The semi-autonomous geographic divisions are the regions that the company operates.
Nike incorporation does outsource the production of the sportswear, accessories and advertising services in various countries such as China, Indonesia, Vietnam, Taiwan, South Korea, and the Philippines (Clarioni, Giulio " Luca,p.27). Outsourcing is beneficial to the company as it reduces costs. The company cuts cost by obtaining cheap plant operations and low wages for the workers. The process also increases competitiveness for the company as it takes advantage of the cheap operations to price its products competitively. Outsourcing also helps save finances and the reduction of risk, through bypassing of some taxes and transfer of insurance liabilities to the subcontractors.
The company has various internal strengths that drive the business to become a global leader. Some of these strengths include a strong brand name, rapid innovation processes and a wide global production and distribution network. However, the company has also weaknesses that can be exploited by competitors and include; labor controversies such as poor wages and working conditions, limitations in the product mix and its limited presence in the developing markets (Clarioni, Giulio" Luca, p.28). Some of the core competencies of the business are its effective marketing strategies and product design which helps the company provide much value and benefits to its consumers.
Conclusion
Nike incorporation prides in providing quality sportswear and equipment to its customers and maintains a competitive advantage through outsourcing products which makes its operations cheaper.
Work Cited
Clarioni, Giulio, and Luca Giustiniano. "Outsourcing, business performance and vertical integration boundaries: An empirical analysis." Proceedings of the World Business and Social Science Research Conference. 2011.
