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Nike VRIOS and SCOT Analysis
The report illustrates VRIOS and SCOT analysis of Nike Company a foot wear giant in the
market. It explains skill set and competencies on this basis. Conclusions are offered.
VRIOS Model
Each element of VRIOS model can be rated on the four scales
A= outstanding in terms of generating value and providing strategic advantages
B= valuable but is not identified as importance sources of advantage
C= useful but perhaps declining in significance
D= already lost its significance and may not be sustainable
V R I O S Comments
Distinctive abilities
1. Technology
Infrastructure
Yes Yes Yes Yes No A Company has
huge research
ability that created
lots of new
technological
products that are
providing value
are rate, are not
imitable is rare, is
inimitable, and
offers competitive
advantages.
Innovative services Yes Yes No Yes Yes A. Nike score
mostly A
for
innovative
services
because it
has
created
blue ocean
market
due to
innovative
products
Financial resources Yes Yes No Yes Yes B. the value is
significant for
Nike but certainly
it is imitable and
there are lots of
substitutability
offered by other
companies in this
aspect
Strategic assets
competent human
resources
Yes Yes No Yes Yes A. The Nike
company
has
competent
human
resource
but
substitutab
ility factor
is also
present
Production and supply
chain management
Yes Yes No Yes Yes B. The Nike
company has
realised
economies of
scale by
outsourcing its
manufacturing
work to Asia and
making more
profit.
Brand image Yes Yes Yes Yes No A. Nike
enjoys
strong
brand
liability
and
preference
from the
customers.
Analysis
The abilities to offer better and innovative products than the competitors are better for Nike.
This provides company a distinctive capability over the competitors. Company has always
worked for product concept and innovation and product up gradation is the key for Nike in
business. This is reflected by introduction of Hi-Tec Air Max Technology in the shoes
(Sanusi, Lazarev, Alexander, Jorgensen, & Badtiev, 2014). Company has introduced Nike+
iPod sports kit that assists athletes to measure the distance and speed of a walk or run. Later
Nike has introduced air cushioning technology and has released a new shoe Air Max (Sanusi,
Lazarev, Alexander, Jorgensen, & Badtiev, 2014). There are about 40 models under this
name sold successfully by company. Company has introduced digital gadgets and has
introduced mass product gadget that is known as Nike+iPod sports kit (Sanusi, Lazarev,
Alexander, Jorgensen, & Badtiev, 2014). After this innovation, company introduced Nike+
Sports band kit. The product does not require connection with iPods but can be directly
linked with a computer. In 2010, September, Nike introduced running app used in advanced
iPhones. This app assists user to use product without placing a chip in shoes. Nike has offered
Nike+iPods and Polarwearlink+ that provides sufficient details about the abilities of company
to innovate new products (Sanusi, Lazarev,...