Management Information Systems

Management Information Systems

Evaluate Nike using the competitive forces and value chain models

Over years, Nike has had a competitive advantage over many firms manufacturing and selling shoes and clothes especially due to the reputation that the firm have. Nike Company has continuously provided products that are of high quality, and through the diverse nature of these goods and services, the firm has had a competitive edge against most other organizations providing similar services and products. Moreover, the differentiation of the goods of the company is very high. This has contributed largely to the competitiveness of the firm, and hence the customers of their products return to purchase more of these products over time (Laudon, & Laudon, 2003). For the market errant of Nike, the outfit has developed two trackers to track the activities of the market, which are worn, on the wrist. Moreover, a point system that was created with these gadgets, known as the NikeFule is also used to help in the market environment and thus enhancing the competitive advantage of the company. The point system locks people into the Nike+ ecosystem of movement-tracking devices making it harder to switch to other wearable computing devices.

What competitive strategies is Nike pursuing? How is information technology

related to these strategies?

The strategy that Nike is utilizing in the competitive advantage gain is product differentiation, strengthening the customer relations with the company and focusing on market niches. The switching of costs for the customers has been made easier through the utilization of advanced technology of the firm since the products are interconnected. The integration of technology within Nike has helped to connect the product lines and hence switching along these lines is made easier and much efficient. In this regard, the firm has developed their website and mobile apps thereby ensuring that customers access their services faster and efficiently, hence retaining them.

In what sense is Nike a “technology company”? Explain your answer

One of the most appealing approaches that Nike has used along with Technology is that the company has continuously developed products that are appealing to the customers thus ensuring the performance of these products is good and durable. Moreover, the company has utilized advanced technologies in designing their shoes that use super-gases, which are encased in urethane plastic. Therefore, cushioning of the shoes is of high quality for the customers to benefit in. Moreover, their activities are conducted online. This is because of the advanced technology such as meters, sensors, and electrical appliances, which are interconnected, and hence management, marketing, and delivery of the products are managed online with these systems.

How much of an edge does Nike have over its competitors? Explain your answer

According to,, due to the company having many mobile applications associated with the selling of their products, Nike has a competitive advantage over most of the competing firms. The apps that Nike has developed are helpful to the athletes. The apps help track the progress of the athlete’s practices on daily occasions for comparisons (Laudon & Laudon, 2003). These apps are pivotal to the athletes as they make the same easy to achieve unlike the competitors of Nike. Moreover, the firm utilizes multiple channels for communication with the customers of their products, including Facebook, Twitter, daily workouts, and training programs. This, therefore, has led to the competitiveness of Nike.



Laudon, C., & Laudon, P. (2003). Information systems, organizations, and strategy.

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