Week 2

Nike is the company I chose to look into they use a differentiation strategy by providing products that are unique and distinct from their competitors. Nike prides itself on breaking barriers and building communities. They have led multiple campaigns to connect with athletes all over the world. From diversity and inclusions to female empowerment, Nike has made large campaigns bring focus to these topics. As a huge international company, Nike has a lot of brand loyalty. As well as brand loyalty they also have multiple deals with universities, sports teams and athletes that mean their brand is seen everywhere. After researching, I found on the Forbes website that Nike is pushing their ability to have “direct connections with consumers”, in this time of massive changes Nike is continuing to play offence. Being innovative and propelling the company forward.

Nike’s compensation strategy has three parts. The first is the base salary, Nike strives to pay their employees a competitive wage that covers the standard of living, helping them to adequately support themselves and their families. the second aspect is the cash bonuses, which are given out in a pay-for-performance format. I think this is supportive of their competitive strategy as it is an incentive to propel the company forward. Finally, they use stock grants they come in two forms restricted stock units and restricted stock awards. I think this also supports the competitive strategy as it ties into brand loyalty and employees’ loyalty to the company.

In the past, Nike has been spotlighted for their uses of sweatshops. In more recent years they have moved to push for human rights and away from sweatshops. They are now committed to using responsible employment and work practices. I think Nike’s success in their product market gives them the means to compensate their employees, especially when they have an increase in profits. I believe now they have moved to use responsible employment practices they have a better foundation to compensate their employers because they are paying them a competitive wage already meaning compensation can be added on top.

My sources:

https://purpose.nike.com

https://avieradvisors.com/blog/how-are-nike-employees-compensated/

https://purpose.nike.com/strategic-compensation-in-the-supply-chain

https://purpose.nike.com/human-rights

https://economics.yale.edu/sites/default/files/files/Workshops-Seminars/Development/harrison-040322.pdf

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