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Case Study: Nike’s Competitiveness

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I. Abstract:

In this paper, I would like to discuss about what is Porter’s Value chain, and then apply it to the case of Nike, the world largest footwear maker. Here is a brief introduction about the content:

I: Abstract

II: Introduction: explanation about Porter’s Value Chain

III: Case study: Nike, Inc.

• Chapter 1: NIKE - The Rise to Be a World Top Shoe-Maker

• Chapter II: NIKE's 9 Main Factors of Success

• Chapter 3: Nike’s bright future

IV. Conclusion

II. Introduction:

Every company is born in an environment of competitiveness; therefore, they can not run without showing their outstanding performance toward competitors and winning customer’s satisfaction. Too many companies believe that acquiring and managing customers is the job of Marketing department, however, it is the combination between marketing skills and the real value of products and services. Even the best Marketing team in the world can not win customers’ satisfaction by providing low quality products.

Then, how to create and deliver superior value that exceeds the cost of activities? There are 5 capabilities: understanding customer value, creating customer value, delivering customer value, capturing customer value, and sustaining customer value. To help a company identify the ways to create more customer value, Michael Porter of Harvard proposed the Value Chain as shown in the next page.

As you can see in the diagram, Porter separates a business system into a series of value generating activities. Those activities are sequence and found to be common in a wide range of firms. There are two main groups of activities, including primary activities and support activities.

Primary value chain activities are:

• Inbound logistics: the activities of receiving raw materials, putting them into warehouse and distributing to manufacture when they are required.

• Operations: the processes of transforming inputs into finished products and services.

• Outbound logistics: warehousing finished goods and distributing them to the market.

• Marketing and Sales: identify customer needs, advertise and sell products and services to them.

• Service: the activities to support customers after they bought products and services. ( For example: guarantee services)

To support the primary activities, Porter has pointed out the Support activities as follows:

• Firm infrastructure: manufacture structure, company culture, control systems...

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