Question

I don't have the textbook for Strategic Management: Concepts 4th Edition by Frank Roth but I have a homework on Case 6 Pgs 463-465 and need the homework questions or pages pleaseeeee... I need to answer the questions and write a paper on it but I don't need you to solve it (unless you have some opinions on it you'd like to share)... just need to know what the questions are thank you

Answer 1

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If it is Case 6, Then it has to be the Mini Case and The Case name is Nike's Core Competency: The Risky Business of Fiary Tales. The following are the questions and my answers to them.

(1) The MiniCase indicates that Nike’s core competency is to create heroes. What does this mean? How did Nike build its core competency? Does it obey the VRIO attributes (valuable, rare, inimitable, and organized to capture value based on the resource-based view of the firm)?

Core competence is the deep skills, capabilities, and strengths that are embedded within an organization. It is through core competence an organization gains competitive advantage. In the case of Nk brand of shoes, the core competence of the company is to create sport heroes. The belief that sheer will, tenacity, hard work, discipline and focus can make any person hero is ingrained in the activities of the company. Instead of spending budgets on the advertisement of the sports shoes, the Nk search for the motivated athletes who are likely to win against the odds, and then sponsor the sportspersons until he/she wins in a significant sports event. While formulating the strategy the company may not have consciously applied the VRIO paradigm in assessing the competitive advantage. However on hindsight, the company has followed the VRIO formula. The core competence of identifying, sponsoring and promoting the athletes who are likely to win against odds is valuable, rare, difficult to imitate and the company has organized itself to capture the value through exclusive retail outlets and online shopping sites.

(2) What would it take for Nike’s approach to turn from a strength into a weakness? Did this tipping point already occur? Why or why not?

The brand value gained by Nk is based on the goodwill of converting ordinary individuals to sporting heroes. If the sporting athletes are caught up in illegitimate activities, the brand image of the Nk would be affected. The fame of the athlete can bring business to the company, at the same time their ignominy can lead to disaster. Nk has already experienced several instances where their integrity and reputation were at stake. The market may allow a few such instances, but several scandals can ruin the image of the Nk as a genuine company. Along with motivating the athletes the company needs to inculcate strong value system in them.

(3) What recommendations would you have for Nike? Can you identify a way to reframe the competency of creating heroes? Or a new way to think of heroes, teams, or sports that would continue to build the brand?

Nk is doing an excellent service to the upcoming athletes and thrilling sporting events. Their core competency of inspiring the athletes is exceptional. Because the company has experienced many serious allegations about their athletes engaging in illegitimate activities, along with motivating the athletes the company needs to inculcate strong value system in them. While developing sporting talents, fair and honest behaviors also must be appreciated among sporting circles. As part of the sponsorship, the company must consciously expose both, the virtuous and vice behaviors of the athlete they have chosen. They may engage a sports psychologist in controlling and managing the vices of the athletes. The company must explicitly develop organizational value system and adhere to it strictly. Customers value the efforts taken by the company to promote the athletes, but they may turn hostile if the company is associated with unethical issues.

(4) If you are a competitor of Nike (such as adidas, Under Armour, New Balance, or Li-Ning), how could you exploit Nike’s apparent vulnerability? Provide a set of concrete recommendations

The competitors of the Nk must get associated with ethics and morality in sports, and must develop core competency in infusing values among athletes which is beyond talent and skill. As in fashion contest, personality tests or depth interviews also need to be incorporated into the sporting events. A peep into the ‘off the field’ behaviors of the athlete may be documented as part of the brand building activity. The companies competing with Nk may highlight their efforts to sponsor genuine and ethical sportspersons. By highlighting the imbalance between the talent and the ethical standards followed the Nk’s athletes; the competitors can achieve ethical credibility of their business.

IF THE CASE IS DIFFERENT PLEASE COMMENT I WILL CHANGE THE QUESTIONS AND ANSWER IMMEDIATELY. THANK YOU!