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Nike Case Study

Introduction

Nike is one of the most valuable brands in the world and is into the creation of the footwear and sportswear supplies. The extent to which the brand equity of the organization is established can be estimated by the fact that they are operating in about 160 countries and there are about 50,000 people that are employed by the organization. In this paper, it is going to be seen that how the management functions are used to create eventual value for the customers and how the services are executed at the level of brand (DeTienne et al. 2017).

Focusing on Supply Chain

One of the key things that is done at the level of Nike is that they tend to make sure that they are flexible in terms of the way they operate at any given point of time. There is a conscious effort on their part to make sure that they are working towards a decentralized supply chain system that allows them to ensure greater level of coordination. That does not mean that the central level of control is not witnessed in the operations as the quality control standards elements are quite stringent (DeTienne et al. 2017). It is safe to assume that wearing Nike at any store or outlet around the world is going to be the same experience and that overall consistency is one of the strong points of the brand. The idea on their part is to make sure that the simplified product line is being maintained in which all the major elements of the supply chain are being looked after in an appropriate manner. The strategy that they have adopted is known as the build to block strategy in which the three are only certain units that are used in each of the respective SKU and strategy is being amended according to that planning at any given point of time. This flexibility in terms of the product design and product development is one of the core reasons that they have been able to create a major competitive advantage for themselves around the world (DeTienne et al. 2017).

Usage of the 100 Point Scoring System

One of the key elements that is being implemented on the part of Nike is to make sure that they are using external input and guidance with regards to the way they operate. The idea on their part is to make sure that they are using LCA experts so that the 100-point scoring system is developed (DeTienne et al. 2017). This information is critically developed using the life cycle data. The other major thing that has to be noted in this regard is that how the impact categories are going to vary with the passage of time (DeTienne et al. 2017). The idea is different weighing are applied to the impact categories so that it can be made sure that each of the score is generated in the manner that at the end of the day, it is being aggregated at the broader level and then it is being combined with the eventual material scores so that right decision can be made moving forward (DeTienne et al. 2017).

Creating an Innovative and Sustainable Business Model

In this day and age, it is very important for the brand to make sure that they are sustainable in terms of the way they operate. In this regard, the strategy that has been opted by Nike is to make sure that they are using the idea of product and material sustainability in order to ensure that the static perspective is being developed at the given point of time (Lueg et al, 2018). The idea is to make sure that the own life cycle assessment is being created so that it can be made sure that the strategic decision is being made at the end of the organization (Lohman et al. 2016). The key aspect of this approach is to make sure that the evolution of the measurement of the sustainability is being done at the level of the organization so that it can be made sure that the impact minimization and movement towards the sustainability is being done at the given level each respective time (Lohman et al. 2016). Thus, what they have done is that they have created a business model that is not only sustainable, it is also going to stand the test of time in the long run and prove worthy for the business (Lohman et al. 2016). The innovation goals that are developed by Nike gives key insight with regards to the way they operate at the given point of time and two of the key points in the innovation goals are water stewardship and climate stability (Lohman et al. 2016).

Conclusion

In the hindsight, it can be said that there are many reasons that Nike has become one of the most sought after brands in the world but the key reasons for their success is that how they have made sure that innovation drives the brand at the given point of time and allows them to make sure that they take decisions in an appropriate manner (Lueg et al, 2018). The other key aspect of the way they operate is that how environment sustainability has become one of the core drivers of the innovation at the end of the brand and how they have used it to ensure that they create competitive advantage in the market (Lueg et al, 2018).

Works Cited

DeTienne, Kristen Bell, and Lee W. Lewis. "The pragmatic and ethical barriers to corporate social responsibility disclosure: The Nike case." Journal of Business Ethics 60.4 (2017): 359-376.

Lohman, Clemens, Leonard Fortuin, and Marc Wouters. "Designing a performance measurement system: A case study." European journal of operational research 156.2 (2016): 267-286.

Lueg, Rainer, Maria Medelby Pedersen, and Søren Nørregaard Clemmensen. "The role of corporate sustainability in a low‐cost business model–A case study in the Scandinavian fashion industry." Business Strategy and the Environment 24.5 (2018): 344-359.