Corporate Level Strategy of Nike

The corporate level strategy of Nike is a very compelling discussion.  Diversification among the brand is obviously a major tool.  Nike products are the typical example of moderate-high, related constrained diversification.  This reveals that more than half of revenues come from major business fields.  Also, it is proof that all businesses share product, technological, and distribution linkages.  

The major product that yields the biggest share of income is shoes and apparel.  With minor products, the company uses the same distribution channels, technological, and other resources.  Their primary product focus is athletic footwear designed for specific-sport and/or leisure uses. 

Nike must pay close attention to manufacturing and supply chain diversification also.  Recent global economic crisis and uncertainties increased importance of such diversification.   This enables Nike to get the best deals and decrease risks. 

Supplier diversity is a very important part of the success a business generates.  Due to Nike’s customers being on a worldwide scale, the company must create a very broad base of suppliers in order to generate the revenues they are aiming for.  

Intellectual Capital of Nike

Nike is not exactly known for just one product they produce specifically.  Although, they have a positive reputation in the product line of their shoes.  They significantly increased their reputation by including famous athletes such as Michael Jordan and Bo Jackson.  Nike gained publicity by doing this because nearly everyone from 40 years old and younger wanted to be 'Like Mike'.  Or in Bo Jackson's commercials, his famous line was 'Bo Knows!'.  To this day, when discussing the overall view and significance of Nike, they proudly associate a great reputation to their brand.

The value of Nike as a brand is through the roof.  An example of this is: adding only a tiny swoosh or two to a piece of off-brand clothing and the price increases by $20 at least.  This shows the luxurious type of distributor Nike has become.

Overall, Nike has made tremendous strides in their intellectual capital.  They have always and will continue to be comfortably above the rest of their competition.