Explain the current corporate strategy for Nike including their use of vertical integration, diversification, strategic alliances, mergers, and acquisitions.
Nike is the leading brand for the athlectic footwear. Its other products categories include running, basketball , tennis , golf, football, bicycling and many other.
1. Nike current corporate strategy include new product development strategy that is it concentrating all its resources in the development of new products and services by investing heavily in the Research and Development department . The innovative product helps in providing competative edge to the company and thus accompishes the aim of growth strategy.
2. Nike has used strategic alliances strategy by collaborating with other companies within the sports and fitness industry. It has collaborated with Bauer Nike Hockey.But it has soonly terminated his collaboration with Bauer Nike Hockey due to tremendous decline in sales.
3. Nike has used the horizontal diversification strategy since apart from providing athletic footwear it has diversified its operations in to apparel industry which is unrelated to its current product.
4. Nike has used the forward vertical integration by establishing its retail outlets in various locations for selling of its various products manufactured by the company.It helps the company in better management of supply of company's products.
5. Nike has used the merger and accquistions strategy to sell its additional sports related merchandise and raw materials . The wholly owned subsidiaries are Cole Haan Holdings Incorporation, Nike Team Sports Incorporation,Nike IHM Incorporation, and Bauer Nike Hockey Incorporation.
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