Analysis of Nike Inc. and Kodak Company- myassignmenthelp.com

Question: Discuss about theAnalysis of Nike Inc. and Kodak Company. Answer: This report aimed to understand market used by the companies and their effects on decision making that either impacts it positively or negatively. In this context, business is affected by decision making and business models strategy in the market. Due to the market competitiveness business needs to have specific strengths and weaknesses that may require specialized policy responses. As new technologies and globalization are taking center stage, they also reduce the economies of scale in many activities. Many businesses are still facing challenges to thrive in market due to the following; lack of financing, technology, constrained managerial capabilities, low productivity, regulatory burdens become acuter in a globalized, technology-driven environment. Analysis of Nike and Kodak Companies In this century, having a strategic management system is one of the important aspects that any company should have to ensure that it succeeds in the business world. Understanding the market strategies used by other companies and their decision making, they can come up with ways of counteracting the competition thus being successful. Nike is one company that used these strategies to deal with its competition thus making it one of the most successful corporations around the world. Nike Inc. was one of the most successful and leading manufacturers of equipment used in sports and ended selling its material in more than 110 countries. Environmental Forces However, the company has been facing some problems of late, and these issues include a problem in the management of the inventory. This led to the business losing more than 100 million in sales. This happened because Nike started using a new kind of inventory management software which the company hoped that it was going to help the company with products that will sell in future. It was a beautiful move for the business to try this idea but it ended up to be a disappointment and leading the company to a loss (Kapoor 2014) Pestel Analysis of Nike This form of analysis is grouped into four major categories. These are; political, economic, social and technological. On the political report, the government of the United States was keen on pushing and promoting the company to grow by creating economic policies. The government helped Nike to promote its products. This happened through the economic growth of the country which formed the basis of Nike to grow (Kapoor 2014). Regarding economic analysis, currently, Nike Inc. is playing a major role in the world of business. The Economic crisis is one of the major threat to the mode of operation for any business like Nike. During the times of economic crisis, the cost of labor and material often increases thus having a toll on the performance of the company. Society analysis. In this time and era many people are very cautious about their health thus many people ended up wanting to join fitness clubs. This led to the demand for an increase in the production of Nike products because fitness clubs are the first targets of Nike products. This ended up increasing the sales of the company. However, the company ended up facing a problem that was caused by exposure to production sites in Asia for example; it was faced with the issue of using underage workers in its industries in Asia. This ended up spoiling the image of Nike Inc. in the public eye. Consumers started boycotting the company because they wanted a company that was socially responsible. Technology analysis. Nike Inc. is the leading producer of sports accessories in the world, and it is because of technology that this was made possible. The marketing information system that was being used by Nike proved to be very effective because it ensured that Nike products were sold far and wide. Technology played an essential role in ensuring that Nike Inc. was the best in what it was doing. SWOT analysis of Nike Inc. This involves four categories, and these are; strengths, weaknesses, opportunities, and threats. Strengths. Nike Inc. was the leading regarding producing and supplying sports equipment around the world. This made the company to have a huge number of loyal customers because of the quality of its products. Furthermore, the company was successful in its marketing strategy, for example, the just do it campaign. Weaknesses. The major production that Nike Inc. concentrated on was footwear, and this made the company not to focus on other sports equipment which turned out to be risky for Nike. Additionally, the company produced much equipment that was male based thus the females did not have much equipment from this company. This led to the company losing a lot of income that was meant to come from female customers. Opportunities. Currently, the company has the opportunity of targeting the younger generation because currently the young people are focused on sports, therefore, ending up with buying sports equipment. Additionally, because initially, they did not target the female market, this turned out to be an opportunity for Nike because, in this century, many women involve themselves in sports thus needing the sports gear (Brohi et al. 2016). Threats. Nike had invested in foreign countries thus they had to pay the taxes in these foreign countries even if the interest rates in these countries were high. Another threat for Nike was competition from other companies that produce sports gear. Another company that was the best in what it used to do but is currently facing a lot of challenges is the Kodak Company. This was a technological company and was focused on Imaging. The company was famous for its polaroid camera and since the introduction of the digital cameras, Kodak has ended up failing in the imaging market. However, some of it cameras are still being used up to today. Using the SWOT analysis system will enable one understand Kodak Company deeply (Kumar andPutnam 2008). Strengths. Kodak was a renowned brand, and it was trusted by many people since its inception. Furthermore, it had a broad product portfolio because it offered a wide range of products. It was also socially responsible because its products were environmentally friendly and it contributed to the reduction of greenhouse gases. Weaknesses. The company registered a slow transition from analog to digital thus ending up losing a lot of customers in the process. This resulted in huge losses for the company. Opportunities. The company is now adopting the digital technology and is now coming up with their own products that they are already introducing to the market currently. The world is evolving thus creating a demand for everyone to have a digital camera or smartphone and Kodak is concentrating on meeting this demand. Threats. The main threat for this company is the intense competition from other producers of gadgets like Sony. Furthermore, the introduction of smartphones with the quality camera has ended up acting as a substitute product for cameras because people do not want to carry extra gadgets. As it can be seen, the companies discussed above were once the best in the market, but due to changing times and emergence of stiff competition, they are now being faced with challenges that need the management of these companies to come up with ways of reviving and returning them in their right positions. Recommendations The companies should employ modern technology for them to satisfy the market gaps that are caused by the use of traditional methods of technology. Management should begin to adopt strategic management teams that shall spearhead the process and ability to adopt to the environmental changes. Companies should begin to encourage innovation of products to ensure they are relevant in the market. References. Brohi, H., Prithiani, J., Abbas, Z., Bhutto, A.H. and Chawla, S.K., 2016. Strategic Marketing Plan of Nike. https://www.researchgate.net/publication/299889166_Strategic_Marketing_Plan_of_Nike GRADE, G.B., International Marketing: Nike Inc. www.marketing-schools.org/types-of-marketing/international-marketing.html Kapoor, A., 2014.Competition Mapping and Market Analysis for Sportswear. NIFt. https://14.139.111.26/jspui/bitstream/1/30/1/gp720%202014.pdf. Kumar, S. and Putnam, V., 2008. Cradle to cradle: Reverse logistics strategies and opportunities across three industry sectors.International Journal of Production Economics,115(2), pp.305-315. https://www.journals.elsevier.com/international-journal-of-production-economics Slocum, J.W., McGill, M. and Lei, D.T., 1994. The new learning strategy: Anytime, anything, anywhere.Organizational Dynamics,23(2), pp.33-47. www.humanresourcesmba.net/faq/what-is-organizational-dynamics/