How do you change business inputs into business outputs in such a way that they have a greater value than the original cost of creating those outputs?
Around the world, it can be easily recognized by its Swoosh logo. Apart from these things, the brand is globally popular for its quality of products. Globally, Nike has a very large fan base. It is a highly competitive brand and its competitiveness is a result of its value chain management.
A well managed value chain leads to higher productivity and therefore requires strategic focus. The value chain includes all the activities starting from the procurement of raw materials to sales and after sales service.
It is important for managers to know how each stage in the value chain adds value to the entire production process. Optimizing these steps helps create better results and increase productivity.
Value chain includes both primary and support activities. This is an analysis of the value chain of Nike.
Nike has a global procurement team to manage the procurement part of its supply chain management. It includes selecting and contacting the right suppliers for the right goods and services. In the recent years, it has seriously focused on sustainability and in this regard is working to reduce its environmental impact.
Its sourcing strategy gives priority to the suppliers who are willing to go beyond the minimum standards and can follow the rules related to sustainability strictly. At Nike, nearly all of its products are made by independent contractors.
Currently, there are factories across 42 countries where Nike products are manufactured. The focus throughout these manufacturing facilities remains on transparency, quality and sustainability and it is why only the most responsible ones get to be a part of its supply chain.
Products sourced from these suppliers are sent to various markets through the regional offices and distribution centers of Nike. Nike is headquartered at Oregon in North America.
It is also the biggest office which boasts of the highest number of Nike employees. Nike is present globally and each of its office caters to large geographical areas of several countries. It employed more than 70, workers in its offices in There are more than factories making Nike products in 42 countries.
The products shipped from these manufacturers to the Nike Distribution centers have to be sent to the retail stores for sales.
Nike has used a chain of regional distribution centers to cater to the needs of its retail stores so that customers do not have to wait long for a new product after its release. An efficient distribution system helps manage timely delivery and shipments too.
Init opened its largest distribution center at Tennessee. Its European logistics campus is located at Belgium which enables the management of a faster and smarter supply chain.
Apart from its great quality, Nike is also known globally for its excellent marketing strategy starting from its Swoosh logo and can be found on all Nike products.
However, Nike also invests heavily in marketing and uses sportspeople like Football celebs for the marketing and promotion of its products and brand. Its video marketing strategy is especially appreciated by the Nike fans.
The main sales channels for Nike are two — physical and online channels.
Its own stores including in-line and factory retail stores and its websites and mobile sales channels sell to the customers directly. It also uses a mix of independent distributors, licensees and sales representatives globally for sales.
While the focus is on best quality, sustainability has also become an important focus for Nike. It is using best in class technologies to reuse the waste generated by the Nike factories and other technologies that specifically focus on creating material that is both user friendly and sustainable.
It is using technological solutions to minimize its impact on the environment and continuously improve the quality of its products.
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One of todays major business challenges requiring logistics insight is the dramatic growth in international sourcing, mainly to low cost countries such as China and Malaysia (David leslutinsduphoenix.com, ). Porter's generic strategies describe how a company pursues competitive advantage across its chosen market scope.
There are three/four generic strategies, either lower cost, differentiated, or focus.A company chooses to pursue one of two types of competitive advantage, either via lower costs than its competition or by differentiating itself along dimensions valued by customers to command a.
Chuck joined the Crispin Agency in as creative director and partner, after a long career as an award-winning freelance copywriter. The agency was renamed Crispin & Porter, and within three years, it doubled in size and was named one of the top 15 creative shops in the country.
Under his leadership, CP+B has become one of the most awarded agencies in the world and was honored as Agency of.
Oct 23, · Nike value chain analysis khin Yong. Loading Unsubscribe from khin Yong? Value Chain of Porter explained - Duration: .