Nike's Internal Environment

Nike's Internal Environment

Nike's Value Chain - What does Nike do that adds value to the company?

Primary Activities - 

• Inbound Logistics and Manufacturing both relate directly to the production of of Nike's various product lines. Nike is able to use its buyer power to reduce production costs.
• Operations and Outbound Logistics - With over $24 billion in revenues in 2012, managing its global operations is a difficult task. However, efficiently managing production and product distribution can save the company a significant amount of money.
• Marketing and Sales - I would argue Nike is one of the best companies as far as their marketing efforts go. They have created a brand that people will pay for. The world best athletes endorse their products, from MJ to Tiger to Derek Jeter. Creating this brand has made Nike one of the most successful companies in the world.

Secondary Activities - 

• Procurement - Nike is able to use its buyer power to reduce production costs. It is also likely that Nike sources product from various suppliers to reduce dependency on any one in particular.
• HR/General Administration - Because Nike is so large, it has its own internal administration divisions, including HR, Accounting, IT, etc.
• R&D - Nike invests a lot in its R&D, from clothing and shoe designs, to equpiment technology. They want to have the best ______ in the world, no matter the sport. It's important to them that Nike athletes (the ones they sponsor) are able to use the best equipment and wear the newest gear.