SUPPLY CHAIN MANAGEMENT OF NIKE COMPANY

Supply Chain Management of Nike Company

Name:

Course: SCM225

Student ID:

Company: Nike company

Date: 13 July 13, 2021

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Supply Chain Management of Nike Company

DECLARATION
Declaration by the Candidate

This research work has never been submitted for a degree at another university. Without the
author's and/or School's explicit written permission, no part of this thesis may be reprinted.

Name………………………………………………………….

Date: .......................................... Signature…………………..

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DEDICATION

This research paper is dedicated to my most esteemed tuitors, university personnel, and
cherished parents for their invaluable contributions towards my Bachelor's degree.
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ACKNOWLEDGEMENT

I would like to express my gratitude to everyone who helped make this project a success in
whatever way. I appreciate my supervisor's efforts in guiding me through the drafting of this
research paper.
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ABSTRACT

The purpose of this study was to look into Nike's supply chain management. Outsourcing and
diversification are two major aspects in Nike's supply chain. Nike's supply chain projects
scope learned how to handle the added logistic complexities that came with outsourcing, and
as a result, the company has experienced cost reduction over time. Outsourcing is inherently
risky, but Nike successfully managed this risk from the start by spreading its supply base
widely. In 2019, 113 distinct manufacturers in 11 countries supplied Nike's shoe components,
with no firm contributing for more than 8% of known mark. Because Nike isn't particularly
dependent on any particular place, it's less exposed to unforeseeable incidents like accidents
and bad weather. This dispersed technique, however, has drawbacks. Procuring components
from many various institutions creates a considerable challenge for quality control. Nike
keeps continuous contact with its partners to improve that its high-quality requirements are
fulfilled at every stage of the process, providing support in terms of knowledge and tools to
help suppliers get started with its ‘Lean Management' methodology. Outside of the supply
chain, there have been challenges to this strategy. Nike chose not to participate in centralized
essential for management in the early phases of its innovative strategy to outsourcing
manufacturing. However, in response to rising customer demand and industry shifts, Nike re-
evaluated its sourcing strategy and adopted a new one. A descriptive research was used in this
study. Secondary data was gathered from books, ebooks, websites, unpublished academic
papers, and other sources.
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TABLE OF CONTENTS

DECLARATION…………………………………………………………………………2

DEDICATION…………………………………………………………………………....3

ACKNOWLEDGEMENT……………………………………………………………….4

ABSTRACT………………………………………………………………………………5

TABLE OF CONTENTS………………………………………………………………..6

LIST OF TABLES……………………………………………………………………….8

LIST OF ABBREVIATIONS……………………………………………………………9

DEFINATION OF TERMS……………………………………………………………10

CHAPTER 1…..………………………………………………………………………...11

INTRODUCTION……………………………………………………………………...11

1.1 Industrial profile………………………………………………………………..,,,,,.11

1.2 Company profile……………………………………………………………………12
1.3 Objectives of project………………………………………………………………..15
1.4 Scope of supply chain practice in Industry………………………………………..15
1.5 Importance of study…………………………………………………………………16
1.6 Research Methodology………………………………………………………………18

CHAPTER 2……………………………………………………………………………..19

LITERATURE REVIEW

CONCEPTUAL REVIEW

2.1 Supply Chain Management Strategy………………………………………….19

2.2 Legal, regulatory and contractual obligation………………………………….20.

2.3 PESTEL Analysis………………………………………………………………..21

CHAPTER 3……………………………………………………………………………..24

RESEARCH METHODOLOGY
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3.1 Inventory Management Strategy………………………………………………24

3.2 Application of six sigma, just in time, Kanban system, and lean production…24

3.3 Analysis of Information System (Application and software) ………………….25

CHAPTER 4

4.1 Findings…………………………………………………………………………..26

4.2 Suggestion…………………………………………………………………………26

4.3 Conclusion…………………………………………………………………………26

BIBLIOGRAPHY………………………………………………………………………….27
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LIST OF CHARTS

Figure 1.0

Figure 2.0
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LIST OF ABBREVIATIONS

SWOT - Strength, Weakness, Opportunities and Threats

C.E.O – Chief Executive Officer

LLC - Limited Liability Company

PESTEL – Political, Economic, Social, Technology, Environmental and Legal

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DEFINATION OF TERMS

Kanbans a Japanese word that roughly translates to "signboard."

Lean is a systematic method of reducing or eliminating non-value-adding operations from a

process.

Six Sigma is a problem-solving method based on data. The focus is on system parameters,
with a focus on client happiness. This strategy aims for continuous process improvement with
few faults.

.
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CHAPTER 1

INTRODUCTION

1.1 Industry profile

NIKE, Inc. is a sportswear, apparel, accoutrements, equipment, and service company that
designs, develops, markets, and sells sportswear, apparel, accoutrements, equipment, and
services. It is divided into the following: North America, Europe, the Middle East, and Africa;
Asia Pacific, Pacific Region, and Latin America; Brand Manager Divisions; Continental; and
Company. The design, production, marketing, and selling of sports shoes, clothes, and
equipment is divided into four components: North America, Europe, Middle East & Africa,
Greater China, Pacific Region & Latin America, and Asia & Latin America. Articulate is a
casual footwear, apparel, and accessory company that designs, markets, licenses, and sells its
products. Unclaimed general and administrative make up the Corporate sector. William Jay
Bowerman and Philip H. Knight founded the company on January 25, 1964, and it is based in
Beaverton, Oregon.

Phil Knight is NIKE, Inc.'s Chairman Emeritus. Mr. Knight is a co-founder of Nike, having
helped the company grow from a small business partnership to the world's biggest footwear,
apparel, and equipments corporation

Mr. Knight was the President of Nike between 1968 to 1990, then again from June 2000 to
2004, with the exception of June 1983 to September 1984.

PERFORMANCE GRAPH Figure 1.0

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Performance graph
$140

$120

$100

$80
Trend 1
Trend

$60 Trend 2

$40

$20

$-
2014 2015 2016 2017 2018
Years

1.2 COMPANY PROFILE

The Nike corporation began with a handshake. Bill Bowerman and his University of Oregon
runner Phil Knight believed they could improve the way runners were designed and sold
shoes. They were absolutely correct. Nike is now the world's leading sports footwear, apparel,
equipment, and accessory manufacturer. Nike has aided the world's top athletes in winning
races, sports, and championships along the road.. Athletes also assisted Nike in developing
and marketing the items and brands that revolutionized sports.

NIKE's products are divided into four categories: footwear, apparel, equipments, and
accessories. The company creates and distributes footwear for a variety of sports, including
running, training, basketball, and soccer. Nike additionally makes footwear for children, and
for other athletic and recreational activities like cricket, hockey, handball, basketball, boxing,
strolling, and other outdoor pursuits. In addition, the company manufactures and sells a range
of products for informal and recreational usage. NIKE sells clothes for the majority of the
sports for which it sells footwear. Merchandise with licensed collegiate and corporate team
and league logos is also available. Under the NIKE brand name, the corporation distributes a
wide range of high-performance sports equipments. Bags, shoes, sports ball, sunglasses,
clocks, digital gadgets, bats, gloves, safety equipment, golf clubs, and other sporting goods
are among these items. Through its fully subsidiary, NIKE IHM, the firm also offers a wide
range of plastics to other manufacturers. Continental and Hurley are NIKE's wholly-owned
subsidiaries.

1.2.1 SWOT Analysis of Nike

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Here's a more in-depth look at Nike's SWOT analysis.

Internal Strategic Factors in Nike's Strengths

 Strong Brand Recognition - Nike is one of most well-known brands in the world,
thanks to its noteworthy, simple, and distinctive name. Its swoosh sign is instantly
recognizable.

 Aiming for Sustainability - Nike CEO Mark Parker stated that the company will
seeking to recognize environmental challenges in the community. Nike help to
find solutions to these environmental challenges, according to the CEO.

 Iconic Partnerships — Nike's long-term collaboration with Michael Jordan has

proven to be lucrative for the corporation in total revenues. “Air Jordan 1 Shoes” was
the result of their partnership. In addition, Nike collaborated with the well-known
basketballers to produce the "Air Jordan 1 Shoes."

Nike’s Weaknesses – Internal Strategic Factors

 Poor Working Circumstances in Other Countries – For the past 19 years, Nike has
also been singled out for its poor working conditions in other countries. Forced labor,
child labor, low salaries, and horrifying workplace conditions that have been judged
"unsafe" are among the difficulties.

 Sellers Have a Strong Hold - Nike's retail company is vulnerable due of its price
sensitivity. Nike sells 60 percent of its products straight to wholesalers or retailers.
Nike does not put up a battle against their price structures because merchants are its
primary clients.

 Pending Debts - While Nike's income statements appear to be healthy, a quick look at
their balance sheet may reveal a different scenario. Nike's finances are still in
jeopardy.

 Dependence on the US Market — Despite having a global presence, Nike continues

to rely on the US marketplace for sales and revenue. In fiscal year 2020, the United
States accounted for around 43% of Nike's sales, with the remaining 58 percent
coming from around the world. Despite its celebrity, Nike relies on the United States
for significant sales and growth.
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 Lack of Diversity: Nike's over-reliance on date specified, or lack of diversification, is

a significant flaw. Sporting activities have been canceled or delayed as a result of the
pandemic, which has inhibited physical connection and gathering. Several sports
teams are now on the verge of disbanding. Nike's losses might be disastrous if the
crisis continues to deter athletic events.

 Under the "Move toward Zero" initiative: Nike vowed to switch all of its facilities
to 99.1 percent renewable energy with gross carbon emissions. While the concept is
admirable and welcome, it is in direct opposition to Nike's vision, which prioritizes
innovation before sustainability. This gives the impression that Nike isn't serious
about addressing climate change, but that its pledge just mere publicity ploy.

Nike’s Opportunities – External Strategic Factors

 Developing Markets - Despite Nike's existence in a number of international

countries, there are still plenty of prospects for the company. This is due to the
progressive growth of developing economies such as India, China, and Brazil.

 Product Innovation - Despite the fact that Nike has a large product line, there still is
a lot of room for improvement. Nike has expanded its technological reach in the
fitness and sports industry. The first stage in developing revolutionary technology
goods is to create display devices that tracks physical activities. partnership and
athletic wear can be advantageous because it is a part of the fashion business that has
yet to be fully revealed.

 Efficient Incorporation - Nike's products are supplied and manufactured by

independent manufacturers. For a more effective and efficient supply chain, the
company can either purchase a couple of these or create its own.

 Severing relations with major retailers: Nike has opted to sever links with some of
the world's largest micro retailers and wholesalers. Nike would no longer cooperate
with 're purchasing such as Zapoo's, Dillard's, Fred Meyer, Bob's Stores, and others,
according to the report. This move is being done in order to improve product
placement and customer satisfaction.

 Machine Learning that has been acquired Small or medium businesses or start-
ups – Nike can purchase small or medium businesses or start-ups thanks to its
considerable economic resources.
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 It recently acquired predictive analytics platform – Celest to expand its online

sales capabilities and predict customer’s shopping behaviour.

Nike’s Threats – External Strategic Factors

 Fake Products - Counterfeit products can have a big impact on Nike's sales and
reputation. Because the corporation operates on a global scale, the possibility of
counterfeit items has increased. Several merchandisers and shops sell fake Nike
products at a lesser price. The low-cost items are made of limited materials, but they
nonetheless bear the Nike logo. Buyers may believe that Nike has started creating
low-quality products, tarnishing the brand's image.

 Increased competitive pressure - Despite Nike's dominance in the athletic sector,

fresh rising companies and competitors remain possible concerns. Nike must spend a
lot of money on advertising and marketing due to the increased competitive ratio. In
fiscal year 2020, Nike spent $3.2 billion on marketing and demand generating. Nike's
best hope for gaining competitive advantage is to create creative items that are
targeted to the demands of sports.

 Impact on Nike's marketing budget — Companies such as Under Armour and

Adidas are boosting their marketing campaigns budgets by putting further pressure on
Nike.

 Currency Exchange Rate Risk - Because the reputation is global, shifting foreign
exchange rates damage it. Nike's financial profits are reported in US dollars. Because
the US dollar is volatile versus other financial currencies, this has an impact on its
revenue..

1.3 Objectives of project

Nike's supply chain is organized around four basic organizational principles:

Nike's supply chain is based on four basic organizational principles:

 Cutsourcing to save money.

 Diversification to reduce risk.
 Corporate social responsibility to manage the company's impact on the world.

1.4 Scope of Supply Chain Practices in Industry

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1.4.1 Globalization

Globalization has created chances for people through knowledge and has aided in bridging
the gap between them and the rest of the world. A wider range of product sources has
benefited businesses. Customers have also profited from a wider range of products, better
quality, and reduced prices. Nike has subsidiaries in more than 200 countries.. With tens of
thousands of employees, Nike company controls subsidiaries with other well-known brands
such as Cole Haan (women's clothing, items, and sportswear), Interact, Incorporated
(clothes), Hurley International, LLC (sports apparel cruising), and Nike Goft (set bigolf
industry, sportswear, balls, shoes, and bags).

1.4.2 Outsourcing
Nike was the very first company to subcontract production; Nike is unique because it does
not purchase shares in factories, instead outsourcing 99 percent of the manufacturing process
to processing facilities located primarily in Asian countries such as China, Indonesia, Taiwan,
the Indonesia, Taiwan, and Asia.

1.5 Importance of Study

1.5.1 Boost Customer Service

 Customers anticipant - receiving the correct product range and amount.

 Customers want things to be available at the appropriate time and in the correct
place. (For example, if an automotive repair shop does not have the appropriate
components in stock and cannot restore your automobile for another day or two,
customer happiness suffers).

 On-Time Delivery – Customers want things to arrive on time (i.e., customer

satisfaction diminishes if pizza delivery is two hours late or Christmas presents are
delivered on December 25).

 Customers want - things to be maintained immediately after they purchase them.

(For example, when a house furnace breaks down in the winter and repairs aren't
possible, satisfied customer suffers.)

1.5.2 Reduce Operating Costs

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 Reduces Purchase Costs - Retailers rely on supply networks to deliver pricey

products fast in order to avoid keeping expensive inventory in stores for longer than
required. To prevent high inventory costs, electronic stores, for example, require quick
delivery of 60" flat-panel plasma HDTVs.

 Reduces Production Costs - Companies depend on supply chains to reliably supply

materials to production facilities in order to minimize production shutdowns due to
material shortages. A parts supply delay that causes an auto assembly plant stoppage,
for example, might cost $21,000 per minute and millions of dollars in missed pay
each day.

 Manufactures rely on supply chain managers to develop networks that meet

customer care requirements at the lowest total cost. Supply chains that are efficient
allow a company to be more competitive in the market. Dell's ground breaking
computer supply chain technique, for example, involved building each machine based
on a single client order, then shipping it. Dell was able to prevent having massive
computer inventory in stores and service locations as a result, saving millions of
dollars. Dell also avoided maintaining computer stocks that would become outdated
as computer technology evolved quickly.

1.5.3 Improve Financial Position

 Distribution network managers are valued by businesses because they help

regulate and reduce inventory costs. This can result in a significant boost in
company profitability. For example, because Americans consume 2.4 billion packages
of cereal each year, lowering cereal supply chain costs by only one cent per box
would result in a savings of $12 million dollars throughout the sector as 12 billion
boxes are consumed.

 Reduce fixed rate – Advantages of the proposed supply chain operations since they
reduce the utilization of big marketable securities in the supply chain, such as
facilities, warehouses, and transportation vehicles. If supply chain experts can
reorganize the network such that six warehouses instead of ten can effectively serve
US clients, the company will avoid having to build four very large properties.

 Increases Cash Flow – Supply chain directors are valued by businesses since they
expedite production process to customers. If a company can create and deliver a
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product to a customer in 11 days instead of 69, it can invoice the customer 60 days
earlier.

1.6 Research Methodology

1.6.1 Case Study

The case study research method used in this study is described in this section. This
research approach was chosen for this study since it provides qualitative methods to
researchers.

1.6.2 Data Collection

The data utilized in this study were gathered from a variety of sources in order to
improve the accuracy of the study. A systematic examination of past studies linked to
the case study mentioned as well as a series of interviews conducted with data
scientists in the associated field, are the two primary sources.

1.6.3 Analyses Method

The major goal of this research is to identify key issues and appropriate DA strategies for
answering them. As a result, we apply systematic strategies for measuring questionnaire
responses into key, relevant, and non-related data questions for SCM 225, such as internal
consistency ration analysis. In addition, a research methodology technique is used to link
data analysis queries to appropriate DA techniques. The mapping method relies on
common DA questions for selecting appropriate DA strategies.
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COMPANY

CHAPTER 2: CONCEPTUAL FRAMEWORK OF SUPPLY CHAIN

MANAGEMENT

LITERATURE REVIEW

2.1 Supply Chain Management

The supply chain is a system of organizations and business procedures that are included
in the manufacture and sale of a product, starting with suppliers who buy raw materials
and ending with customers. The organization's suppliers, as well as the methods for
managing connections with them, make up the upper section of the supply chain. The
organization and methods for marketing and delivering items to end clients make up the
bottom part. Internal products and services are also in place within the factory for
converting supplies and resources provided by suppliers into final goods, as well as
controlling supplies and inventory.
Figure 2.0

DISTRIBUTOR

contract 1

retailer

customer
Contract
2
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2.2 Legal, Regulatory and Contractual Obligation

2.2.1 Environmental, Health and Safety Policy

The Nike corporation is committed to protecting of life and health in the workplace, as well
as operating in a way that protects and promotes the individual's and the environment's safety,
health, and well-being. Nike encourages employees to participate in activity that improve
their health, well-being, and work-life balance. Nike believes in making sport a new routine
for our workers in the same way that they inspire others to do so. Nike expects their suppliers,
contractors, and other business associates to prioritize health & wellbeing in their activities as
much as they do. Any acts or threats of violence are not tolerated. They prohibit or restrict
arms on all of the employer's premises, according to and compatible with local legislation.

2.2.2 Trade Compliance

Nike abides by all applicable trade legislation and requirements. Nike's ability to send and
receive items and services is governed by both domestic and international trade rules. These
rules are somewhat complicated. But the basic line is this: if you're involved in transferring or
making Nike items or options provided from one area to another in any capacity, cooperate
with your management to ensure the transaction goes smoothly. Always precisely identify,
value, ascertain country of origin, and specify all facts reviewable to customs officials while
importing products. They also don't participate in or push boycotts in countries where the US
does not really support them. The US government requires us to record requests to comply
with specific boycotts. Inform the Compliance and Ethics Office when you become aware of
such a claim or if you have any concerns about penalties or boycotts. Nike expects the same
level of devotion from their partners.

2.2.3 Business Relationships and Fair Competition

Whenever Nike do business, it compete hard but fairly. Nike are fortunate in that many
companies around the world want to work with us. As a result, we chose our business
partners carefully. Our goal is to maintain positive working relationships with companies who
share our values, follow through on their obligations, and follow the law. In the countries
where it operates, Nike compete fairly and follow all applicable trade and trade laws. Even
informally, Nike should avoid mentioning business ideas or intentions with competitors.
Nike is committed to following anti-money trafficking regulations all across the world. They
will not tolerate or participate in such behavior as a corporation.
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2.3 PESTEL Analysis

2.3.1 P is for Political

Political considerations are very essential to a company's operations. The majority of today's
political developments have little impact on a company's ability to manufacture goods or
profit margins. The long-term viability of an organization is determined by political issues.
they include:

 The American Government, or Nike's "home nation," has wonderful growth policies
that are especially beneficial to this company. Low interest rates and well-structured
global tax accords are two examples.

 Nike is always exposed to changes in tax and production rules because it

manufactures and sells real items.

 Various political problems can always make custom procedures difficult, if not
impossible, or even ban imports and exports.

2.3.2 E is for Economic

Nike sells a well-known medium-priced product, hence it is less resistant to price issues than
other companies, and here are some of the economic variables:

 A market crash may spell doom for Nike, as well as many other major brands. If this
happens, consumers may opt for lower-end, less expensive products, or simply
because a decent level of quality becomes more accessible.

 Nike’s revenues are to some extent dependent on the low cost of labour in Far Eastern
countries. This is changing, though, which might mean higher Nike prices across the
globe come with the development in Less Economically Developed Countries.

 With its ‘deep pocket’ of finances, Nike has the resources to chase after small
emerging markets in which they could sell products.

2.3.3 S is for Social

Today, marketing communication is more important than ever. Modern organizations

place a high value on social standing, thus these variables should be taken into account:
Global advances in "health consciousness" mean that more and more people are adopting
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healthier lifestyles. These individuals will almost certainly buy a lot of sports gear, which
will make Nike extremely happy.

2.3.4 T is for Technological

Companies can innovate in a variety of ways thanks to technological advancements.

Technology benefits firms like Nike in a variety of ways, from consumer interaction to
product design. Some of the technology aspects that influence it are as follows:

 Things can blow out or dwindle away quicker than ever before thanks to social media.
Nike is doing a good job of leveraging social media to grow its brand, but it might
backfire if done poorly.
 Nike will also be able to employ key knowledge metrics as a result of technology
advancements, allowing them to improve marketing and manufacturing while
increasing income.

2.3.5 L is for Legal

‘PEST' assessments, legal and political variables are occasionally combined, while in a
PESTLE study, the two are segregated. It should come as no surprise that Nike, like most
large firms, avoids paying significant level of revenue. Although there hasn't been more of a
focus on this in recent years, it's still something to think about.

 Nike also faces legal penalties from time to time for its dubious marketing techniques,
that include bogus discounts.

2.3.6 E is for Environmental

Environmental issues are becoming increasingly important. Of course, there are just a
few elements that have an impact on Nike in this respect, although they are worth
mentioning:

• Nike's large scale plants are undeniably damaging the environment. Nike's production
facilities not only emit a lot of air pollution, like most manufacturers, but they also pollute
waterways directly on occasion.

• Nike, on the other hand, offers promise of a shift in their existing methods, with a strong
commitment to becoming more "green."
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This concludes our PESTLE study of Nike. They may well have a successful reputation and
robust resources, but they must pay close attention to the morality of their activities and keep
an eye on other, cheaper shops that are rising.

CHAPTER 3: ANALYSIS AND EVALUATION OF SUPPLY CHAIN

Research Methodology

3.1 Inventory Management Strategies

With today's dynamic request fluctuations, navigation is important to ensuring that an

organization will have enough stocks on hand to meet requests while minimizing the multiple
costs associated with maintaining large inventories. Creating accurate request estimations is
the first step in efficiently managing inventories. Nike should then take use of their recently
completed ERP programming. Given Nike's supply chain, this would be extremely beneficial
to explore merchant managed inventory and a continuous renewal plan . The combination of
these two technologies might have a significant positive impact on both Nike and its
suppliers, improving the entire supply chain from the acquisition of raw materials all the way
upstream. Nike's effective implementation of ERP programming and integration with their
providers to communicate objective of-offers data and request estimates would be required
for to be effective. It would necessitate a strong relationship between Nike and its suppliers,
where data is exchanged on a daily basis. This would allow the maker to organize its actions
precisely in accordance with the request estimations.

3.2 Application of Six Sigma, Just in Time, Kanban System and Lean Production

3.2.1 Lean Production

The machine that changed the world, built on a Training mission on the future of the vehicle
described by Toyota's lean management approach, was published in 1990 and brought lean
production to the Western world. Since then, lean principles have had a significant impact on
manufacturing concepts around the world, as well as industry other than production, such as
healthcare.

3.2.2 Six Sigma

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Six sigma is a statistical strategic approach, similar to lean, that aims to improve quality by
counting how many flaws are present in a process and removing them until the process has as
few defects as feasible.

3.2.3 Kanban system

Kanban is a signal that is used to optimize efficiency and enhance goods just-in-time.
Physical signals, such as a tag or an empty container, can be delivered physically or
electrically via the system.

3.3 Analysis of Information

Nike placed a big early gamble on the risky and challenging strategy of developing a single,
massive, online system for every worker in North America and EMEA within their SAP ERP
system. (The Asia-Pacific division of Nike will use a different version of the program.)
Before the software went into production, everyone had to agree on business procedures and
data definitions, which is a rare occurrence in ERP projects.

Nike's supply chain strategy aims to reduce the time it takes to make a sneaker from nine
months to six. Nike's industrially would be more aligned with its retailers' ordering timetable
if those three months were removed. This means Nike might start producing sneakers on
demand rather than Two months ahead of time and expecting to sell them. Any company
seeking a competitive edge through its supply chain dreams of converting its supply chain
from create to make-to-order. Dell made a name for itself with PCs, and Nike wishes to make
a name for itself with shoes.
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CHAPTER 4: FINDINGS, SUGGESTIONS AND CONCLUSION

4.1 Findings

Any firm's achievement is dependent on its capacity to recognize its core competencies,
identify and fix weaknesses, minimize risks, and grasp the trends that will affect their trade
and investment, as well as how they will respond to them. It streamlines their operations and
ensures that every dollar is protected.

Therefore, the success or failure of the organization depends on the strategies its follows.

4.2 Suggestions

This is necessary to design new and differentiating tactics in order to survive in a competitive
company climate. Nike and Adidas were able to survive and maintain their market positions
because to their strategies. Both companies have strategies that are very similar. In sporting
competitions, Adidas is always a strong competitor to Nike, the international market leader.
Nike's plans are centered on design innovation, whereas Adidas' strategies are centered on
lowering production costs and time, expanding its market, and increasing the attractiveness of
its sports shoes and equipment. Nike is the world's largest manufacturer of athletic footwear
and clothing.

4.3 Conclusion

Nike is clearly the market leader in sports manufacture. There are still markets where the
presence is not as strong. To sustain their competitive edge within the sector, rising markets
such as Russia, Turkey, Brazil, and China will need to be examined. Athletics, Nike's primary
business, is a fiercely competitive sport these days, and then all athletes strive to gain every
edge possible from their tools and equipment. Nike, as is customary, should continue to close
the gap through research & innovation, innovation, and technical advancement in order to
maintain its position as the industry leader. They must remember that competitors such as
adidas and Reebok have the same potential customers as Nike. The competition has been
heightened by Adidas' recent purchase of Reebok. Their branding strategy should be more
customer-focused, with a focus on maintaining the company's strong brand image. They need
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to ensure that the past labor and wage difficulties in Vietnam and China are effectively
addressed by their sustainability strategy.

REFERENCE

Seuring, S., & Müller, M. (2008). From a literature review to a conceptual framework for sustainable
supply chain management. Journal of cleaner production, 16(15), 1699-1710.

Chang, C. Y. (2014). Visualizing brand personality and personal branding: case analysis on Starbucks
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