I need responding about 200 words for each one
1-Porter’s Five force Analysis on Nike: Nike is known as a brand of sports shoes fundamentally. In any case, it moreover makes athletic clothing and contraption. The continuous years have been extremely beneficial for the brand. It’s anything but an immediate consequence of the athleisure designs and for the ubiquity during the Olympics. Nike’s Just do it brand name and the Swoosh logo put it aside from the swarm of brands. Ever, it has kept denoting the best contenders for guaranteeing its image and things. Bargaining power of Suppliers The managing power of Nike’s suppliers is low.While particular suppliers are minimal in size, they don’t have the limit of forward coordination by the same token. This lessens the chances of rivalry from suppliers. Plus, the amount of suppliers is high and they are scattered all through the world. It is the explanation solitary suppliers can’t matter any weight on Nike. The brand sets rules for its suppliers to adjust to. If a supplier doesn’t stick to the standards, Nike can without a very remarkable stretch change to another. Regardless, in such a case, the supplier would lose a huge wellspring of pay. All things considered, Nike holds strong order over its suppliers and audits them regularly through untouchable analysts for consistence. Threat of Substitutes The danger of substitute things is moderate for Nike. It is because a gigantic number of fighting brands make relative or planning things. There are a couple of brands in close by and overall business sectors that make low assessed shoes diverged from Nike. These brands offer lower assessed substitute things for Nike. Fairly this danger is coordinated by the quality and design of Nike things. All things considered, the danger from substitute things is moderate. Bargaining power of Buyers The haggling force of Nike’s buyers is low to coordinate. The amount of its opponents isn’t the case nearly nothing if not colossal. Beside Adidas and Under Armor, there are various competitors like Puma and Reebok. There are various other area and overall brands furthermore that fight with Nike. The trading costs for customers are low. To some degree this force is coordinated by the quality and advancing of Nike’s things. Nike bases on execution and plan. It is the explanation it has had the choice to manufacture extraordinary customer unwavering quality. This decreases the wheeling and dealing power of individual buyers which is low to direct. The threat of New Entrants The danger of new participants for Nike can be seen as low to coordinate. It is because while the hypothesis for starting the business isn’t incredibly tremendous, still there are various essentials that are hard to fulfill. Any new competitor may have to start at a close by or minimal level from the outset. Beside creation, there are advancing, transport and store network the load up that require hypothesis, talented subject matter experts and time. Building a brand picture and worth are furthermore problematic. These parts moderate the danger from the new participants. For any new brand, it is past the domain of creative mind to hope to make the kind of brand picture like Nike medium-term. It requires some speculation, tries and capital endeavor. Nike’s strong circumstance in the market mitigates the danger to a colossal degree. Considering these parts the danger from new contestants is low. While theory for age may be low, developing a conspicuous brand can be monotonous and requires a huge load of capital endeavor. Competitive Rivalry Within The Industry: Genuine contest from developed and exceptional adversaries could think twice about’s slice of the pie advancement. The overall market for athletic footwear, clothing and stuff is portrayed by outrageous contest, with proximity of a tremendous number of players, for instance, Puma, Adidas, V.F Corporation, Asics, etc. The overall athletic things industry is introduced to predictable changes in customer tendencies and advancement; if Nike can’t acclimate to these movements quickly, it could suffer disasters in its piece of the general business. Nike also faces rising rivalry from close by major parts in creating markets, who are dynamically working on their thing quality. Having said that, Nike has a strong brand reputation which probably will continue pushing strong interest for its things. Further, Nike continues isolating it’s anything but an inventive thing portfolio, using a particularly strong brand with updated advancing activities.
2-P
(Political)
E
(Economic)
S
(Social/Cultural)
T
(Technology)
E
(Environmental)
L
(Legal)
Colin Kaepernick – since he protested during the national anthem it became political
Outsourcing the manufacturing
Taking over Soccer market share from Adidas.
Deal with Tiger Shoes
Nike spends roughly $1billion of their $4billion revenu on deals with athletes.
BLM movement and Colin Kaepernick
Adidas grabbing the attention of the younger age demographic
Nike picked athletes who had succeeded against all odds furthering their social impact and message.
The waffle iron bottom of running shoes
This isn’t tech but its innovation – Nike spent their whole marketing Budget on endorsements of athletes (Michael Jordan the first one)
All the legal trouble the Nike heroes got in (Mike Vick, Lance Armstrong)
Alleged $30 million bribe for the Brazilian Soccer Team
Nike has quite the creation story. It started with two men, one a college student and the other his track coach and $1000. They faced a lot of threats and opportunities since they started in the 70s and continue to do so into current times. Like the reading said Nike’s biggest strength is also their biggest weakness: their Heros. After doing the PESTEL analysis the key to Nike’s future is both the S and the L (Social and Legal). The reason I say this is because the sponsorship deals with the Nike Athletes bring them is now Nike does marketing. Its how they drive sales and its how they move social and market trends. However, the legal trouble that these heroes bring to Nike could be their downfall. CEO Phil Knight has said that is just a part of the game but with today’s ever changing social climate, all it takes is one athlete that they back to mess up and Nike loses their market share. Many people thought their deal with Kaepernick would be that downfall because of the social, legal, and even political ramifications it turned a lot of people off to the Nike brand. The Nike boycott movement was a result of this.
Nike is a brand that does take risks and will bet on the underdog. This is how they inspire young kids to buy the Air Jordans and how they inspire their current athletes to wear their gear. They have expanded to make clothing and other gear outside of shoes. They have figured out but the greater the company the harder the fall if that does come. Their model of investing in athletes who have overcome obstacles and betting on them before they make it big has paid off but it will be their downfall if they aren’t careful. The flip side to this is if Nike pulls away from what made them great then they will lose market share in that aspect. It is a fine line for all companies right now in the 2021 social climate. Social and cultural shifts to being more aware of things and bringing equality to the forefront have affected companies outside of Nike. NIke has shown us that they can adapt and will continue to do so but in order for their future to continue to be bright they 100% have to look at the Social and Legal challenges and opportunities that come their way.
3-Mcdonalds is one of the fastest growing fast food chains the world has ever seen. Not only is it fast growing, but it is one of the most popular fast food chains. But you may ask who goes to Mcdonalds and how do the make all these sales. When it comes to selling, they give the people deals so they are almost persuaded into buying the new deal. Also, they had a dollar menu, but that has been taken away. Now they have items on the menu for roughly $1.50 or $2.00. They do this to try and get more people in the door with their low prices. Also, they can afford to make it this low because of how cheap it is to make the food. This is a part where I beleive Mcdonalds thrives in, the ability to charge such low prices for their food and charge over 100% of it orginal value. But, what age group is the target market for Mcdonalds? If you watch a Mcdonalds commercial, you always see what toys they have availible or the commercial has a theme to back up the toys. So the taget market for Mcdonalds would be parents with younger children. These children will see these toys in commercials and want them. Mcdonalds also recently did a promotion for marvel characters and sold them as toys. That right there shows they are trying to get kids and their parents in so they can get a toy with their happy meal. With this, you might also ask what is Mcdonalds core competency? To put this in perspective, I worked at a Mcdonalds location for almost 4 years so I know exacly what they want to show the customer. The 2 main things that they always preached was customer service. They want a trained crew with people who know what they are doing and can do it fast and they want people who will treat the customer right and always put the customer first. I believe they care a lot of this because they are fast food. The food they serve is not top of the line food, but the speed they get the food and how they treat the customer can be great. I think the one thing that Mcdonalds struggles with is getting people to work and how much they pay them. Everyone who works there gets minimum wage and when they are up for a raise, the raise is only about 15 cents. People who work there do not get paid anything so most people do not want to get paid minimum wage to work a job like that. And Mcdonalds has caught heat in the past for how poorly there employees get paid. Also, another thing is item selection and how many things they make. Working the grill area, I see most things do not sell. If they want to make more money, they should condence the menu because thay money spend toward the item that does not get bought can go towards something more useful.
4-According to McDonald’s study case, it states, “The three main target market segments for McDonald’s are mothers, children, and young adults. Moms view McDonald’s as a quick, easy, and affordable meal for families on the go, and they usually are the ones who bring the children”. McDonald’s at the beginning did not have a target market as they focus on opening a restaurant that sells the best burgers. As the restaurant continue to grow, families became their target as McDonald’s offer different type of food as burgers, fries, and drinks. McDonald’s main strategy for their business was to offer a fast service to customers. As any business, there will always be challenges and competition that every business will have to face. For McDonalds, their main issue was giving fast service to customers in their restaurants. “According to national survey of quick-service restaurants, McDonald’s ranks next to last in “friendliness”, beating only Burger King. Part of the problem is that too many restaurants are understaffed during peak breakfast and lunch hours. It is hard to be friendly while work piles up and customers grow increasingly irritated at how long it takes to place and get their orders”. Not having enough employees to work have cause major issue for McDonald’s to offer fast service because employees are not able to make food and take orders at the same time.
Another several issues McDonald’s face is calories intake, making their food more vegetarian or healthier and better labor management. A nine year old girl accuse McDonald’s restaurant of using toys to trick children to get junk food that are unhealthy. This issue has cause controversy because burgers are not considered healthy. McDonalds have reduce their sugar and calories offer in their food and also improved happy meals for children as giving apple slices, yogurt and low calorie juice. McDonald’s core competency would be using technology in their restaurants. In the study case, it states, “McDonald’s used efficiency and technological advances such as microwave to gain operational advantages over its competitors”. Using technology within their restaurants have been beneficial as customers being able to order in advance through McDonald’s app, better cooking equipment, and delivering food to customers at their homes. In today’s society, everything has become digital as part of the affect of the pandemic. Uber, Doordash, and GroupHub has made customers life easy by delivering food service to customers which can benefit employees at McDonalds to have more time to make food then take orders. The strategy McDonald’s should adapt is technological factors as it will help McDonald’s have competitive advantage against its competitors. For example, McDonalds offer digital tablets for customers to custom made their order which will benefit operational management.