Q1- link Nike’s sport company Value Chain to its Generic Business Strategy . Hig
ID: 421455 • Letter: Q
Question
Q1- link Nike’s sport company Value Chain to its Generic Business Strategy. Highlight and explain at least five significant relationships between value chain activities and components of the company’s generic business strategy or vice versa. There are nine activities (five primary and four support) and two strategy components (scopes and competitive advantage), What we are after here is the idea that the company achieves sustainable competitive advantage in the way it chooses its strategy and value chain; its sets up its value chain to carry it out its strategy. You will need to cover at least five distinct linkages.
Explanation / Answer
Value chain comprises of diverse activities such as procurement of raw materials, logistics, after sales service etc. Thus it’s very crucial for business administrators to effectively manage each stage of the value chain process which in fact can help to add overall value to business process.
Nike has a comprehensive worldwide procurement team to administer the procurement part of its supply chain management. It comprises of selecting and contacting the correct suppliers for right goods and services. Nike’s sourcing strategy gives priority to suppliers who can go beyond the minimum standards and strictly adhere to sustainability.
Outbound logistics are crucial for Nike’s value chain where it has used a chain of regional distribution system to meet the needs of its retail stores thus it has facilitated the avoidance of long wait for consumers for new product after its release thus an effective distribution system indeed facilitates timely delivery and shipments.
Nike is worldwide known for its great quality and excellent marketing strategy. It invests huge amounts in marketing for instance uses sportspeople like football players to effectively market and promote its products and brand. Furthermore it uses a mix of independent distributors and sales representatives internationally for sales.
Technology and product quality are most crucial elements of Nike’s production strategy. It focuses on best quality and sustainability by using best in class technologies to reuse wastages and create products that are user friendly. Furthermore it uses technological solutions to reduce adverse impact on environment and consistently persists for product quality improvement.
Nike has been acknowledged globally for its great HR management skills and was featured as US best employer for diversity on Fortune’s list. Furthermore effective human resource administration had always been a crucial element for Nike’s supply chain policy and suppliers also strictly adhere to regulations related to labor and HR administration policies.
Nike focuses a lot on product quality thus there is an entire procurement team which is committed to the task of effectively and efficiently examining and evaluating the eligible suppliers who indeed can guarantee them with more than the minimum quality requirements. Furthermore raw materials are procured globally from various nations.
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