Nike Company and United Airlines: Strategic Management

Analysis of Nike manufacturer’s strategic management

Nike is a key player in the manufacturing of the sports gear of all manners. The company’s name is borrowed from the Greek god of victory. In order for the company to be successful in the market and acclaim its name in this facet of the market, the management has intensively focused on production that is articulated on innovativeness in its three major business units, which are, the footwear, the apparel and sporting equipment. The company’s continuity in the production of quality products has placed its market share at probably 38% in overall with its major competitors trailing at varying degrees.

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In 2006, Nike undertook a surgical reorganization of its product orientation in which the management wanted to realign the current system into one system that was wholly driven by different components of the organization. The new approach would entail subdividing the operations of the organization into six categories. The new reorganization of Nike had been expected to create more consistency with the company’s service provision. The reorganization would place the company in a strategic position that has a capacity to facilitate a holistic satisfaction of the customers throughout the year in which the company would be able to accurately calculate the season of a particular sporting activity and thus, facilitate its capability to meet the demands placed on it through formal, ongoing collaborative basis with all its customers in the world (The Associated Press, 2009).

In order for Nike to maintain its market share in the sporting fraternity, it had to identify new business ventures in which in the wake of the reorganization, the company had elevated women fitness into a major unit of the Nike products matrix. This was because it provided the potentiality of being a cash cow for the company in the future (Burgelman & Denend, 2007).

Analysis of United Airlines

The United Airlines Inc. started as mail service delivery and passenger transport organization. Over the years, it has grown to be the fourth largest airline company in the United States. The company grew and prospered under the watchful eye of the government which at that time was acting as the regulator. Other factors that are attributed to the growth of united airlines included the increase in the number of wealthy individuals and more business people willing to travel (Holmes, Deluzio & Cook, 2011).

The growth and profitability of the airline declined in 1978 after the passage of the airline deregulation act that oversaw the elimination of the government as the regulator of routes and the travelling charges. The new legislation promoted competition and the emergence of new airlines. The new law had a dramatic impact on the airline’s operations, despite new business opportunities to expand to new routes cropping up (Massachusetts Institute of Technology, 2011).

United Airlines Inc. miseries continued in 2009 alongside other factions of the United States economy experienced a downturn in turnover as a result of the global credit crunch that was reaping apart economies for both governments and corporate entities. United airline is experiencing challenges more so in its quest to recover from the economic recession. Among the areas that the company is facing major challenges include its attempt to expand its service delivery scope internationally, introduction of subsidized transport packages that are expected to compete with the low cost carriers that are operating in the United States and its global routes and lastly the ability of the airline giant to maintain positive image with its employees and the labor unions that represent them (Massachusetts Institute of Technology, 2011).

Reference list

Burgelman, R., A. & Denend, L. (2007) Nike’s Global Women’s Fitness Business: Driving Strategic Integration. [Online]. Web.

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Holmes, B., Deluzio, M. & Cook ,V. (2011) Airline Travel. [Online]. Web.

Massachusetts Institute of Technology.( 2011) Airline Industry Overview. [Online]. Web.

The Associated Press. (2009) Nike outlines its reorganization plans. [Online]. Web.

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StudyCorgi. (2021, January 15). Nike Company and United Airlines: Strategic Management. Retrieved from https://studycorgi.com/nike-company-and-united-airlines-strategic-management/

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StudyCorgi. 2021. "Nike Company and United Airlines: Strategic Management." January 15, 2021. https://studycorgi.com/nike-company-and-united-airlines-strategic-management/.

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StudyCorgi. (2021) 'Nike Company and United Airlines: Strategic Management'. 15 January.

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