Saturday, October 19, 2019

Nike Corporation Case Study Essay Example | Topics and Well Written Essays - 2000 words

Nike Corporation Case Study - Essay Example When Nike sets a standard, the industry follows it like a tradition. In the consumer products industry there are two distinct marketing strategies. One is make to sell and the other is make to order. Everyone starts with the make to sell strategy by offering products they think should be bought by consumers. The focus is more on sales than on production. The risk is enormous and the fear of rejection is immense. With passage of time and a better knowledge of preferences manufacturing evolves towards the made to order strategy where the focus shifts to production capability and costs as the demand is now better known and the fear of rejection is almost eliminated. This now opens the avenues of larger markets including globalisation. To become a Global Player critical mass is a must for any multi-national company. This is the evaluation tool to find a company’s capability to survive both financially as well as exponentially. Global Distribution Network and economies of scale are the two key factors for ensuring success. Continuous availability of the product is a very important factor and this is possible by having a competent retail outlet set-up. Equally important is the supply chain and it must be geared up for local supplies at short notices. Lack of these facilities will result in loss of market and inhibit market penetration and dominance. In addition, achieving economies of scale through minimizing manufacturing costs is necessary for manufacturers to meet their financial goals and to erect a barrier for competition to encroach their markets via prices. The success of a business depends on how effectively a company uses its resources and maximizes production as per the market needs to meet its targ ets. In order to maximize one’s own production and profitability in business, it is essential that comprehensive planning on location of its production facilities is done to

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