Mini Assignment 2: Nike Spreading Out to Win the RaceWord Count: 1031
What factors drive Nike’s decision to stick with some form of network organization
structure rather than own its manufacturing operations?
As an
...
Mini Assignment 2: Nike Spreading Out to Win the RaceWord Count: 1031
What factors drive Nike’s decision to stick with some form of network organization
structure rather than own its manufacturing operations?
As an upmost leader in the athletic industry, Nike has focused on sticking to a network
organization structure rather than doing its own manufacturing. The use of a network
organization structure involves strategic alliances, in which the company contracts out as much
work as possible. While using a network organization structure, Nike can center its attention to
its competence and avoid having a hand full of boundless tasks. Nikes core capabilities
encompasses product design rather then manufacturing, thus Nike can focus more on its
research, inventions, and development strategies with the use of a network structural approach. In
addition, Nikes core capabilities also includes marketing which can be seen highly focused on as
it is plays a prominent role in North America. Without this structural approach Nike would most
certainly have too much to handle and lack on focusing on its core capabilities.
The reason why Nike has become a leader in the athletic industry has a lot to do with the level of
outsourcing that it has taken into consideration. This allows the company to focus on their core
capabilities and stay cost competitive since they can decrease on overhead expensive. As Nike
has taken outsourcing to a new level, the company has experts manufacture the shoes to meet the
publics expectation of high quality. Ultimately, the use of a network structure and outsourcing
allows Nikes to save on expenses and optimize operating efficiency.
Moreover, Although Nike is an upmost leader in the athl
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