Nike Business

Nike's business model is to stay diverse and to work as one team. They also focus on these three things:

• Core activities like design, development, and marketing
• Outsourcing of non-core activities like manufacturing to contract manufacturers
• Building a truly global brand

 By staying diverse they are having input from many different ethnic groups and many different cultures. I believe by Nike doing this they have created a great platform that has proven itself to be very profitable. By being diverse they do not get to bias and only focus on specific culture which is why Nike has many different types of apparel and gear to choose from. They are able to save money by outsourcing the manufacturing to sub contractors. Yes, there main focus is for athletes, but they also like to stay in fashion so they do try to appeal to the fashion as well. By sponsoring many Olympic athletes Nike is able to build their brand globally and continue the rise of their athletic empire! Nike stays on top of the sports world currently in first place and they are worth $24 Billion!  With the business model they are using it is sure paying off.

Let’s see if using another companies, business model would make Nike a more profitable company. 

Vans business model is to meet the demands of their customers. They are coming out with different shoes for separate occasions. They have recently expanded internationally and increased their overall profit by marketing more in Asia and Europe. The main target age for Vans is 16-34 in which they normally have 18 years of brand loyalty from those customers who more than likely will encourage their children to by Vans and then Vans will stay in that family for generations. I know this from experience, when I was around 8 years old I remember my mom buying me my first pair of Vans. They were tan canvas with a white stripe going around the canvas and had a white soul. By targeting this age range, they have and will continue to grow. Vans business model to me, does not benefit Nike at all. Nike is already diverse and have found ways to save money by outsourcing manufacturing. If anything, Vans can learn a few things from Nike.