Leading Organizations Essay Example | Topics and Well Written Essays - 2250 words

Leading Organizations - Essay Example check to Kanter (1995) such an transaction will not constitute an adequate response. This is so because, success is based on an organisations ability to create, kind of than predict the future by developing those increases that will literally transform the way the world thinks and affect it self and the extremitys (Kanter 199571).Within the context of todays global competition, businesses and firms no- daylong compete as individual companies but humble to corporate with other businesses in their activities (Wu & Chien 20072). These researchers further argue that, this strategy has decease quite common in many businesses today. The conventional vertical integrated company based business model is gradually organism replaced by collaborative relationship between many fragmented, but complementary and specialized value stars and shape (Wu & Chien1).An alternative approach towards organisational success, one which is becoming increasing promin ent and has realizeed the sustained attention of both home(prenominal) and international business scholars are core competences, capabilities and resources (e.g. Madhok 1998, Prahalad & Hamel1990, Hamel & Prahalad1994 ). In todays global business environment it is no longer sufficient simply to meet customers demand as time quality and cost have become increasingly important in the phase of increasing competition (Petts 1997551).According to Higgins (19982), customers dont always know what they need or even that in that respect is a problem to be solved. Success awaits those companies that recognize the fact that, to be successful and satisfy customers, it is often necessary to lead customers into recognizing these needs (Higgins 19982-3). This is what Nike and a host of other atomic number 82 brands have been doing. In the next section, using the five forces framework of Porter (1980), I will name the Nike brand to see the companys control over suppliers, competitors, competit ive rivalry etc. 1.2 Nike and Porters Five Forces ModelAccording to Porter (1980), argues that understanding of the sources of competition in an industry was vital in developing an organisation product advantage. As shown in the five forces frame work, Porter further states that, five forces were vital in plastic the reputation of competition in an industry, and at the same time dictate the companys advantage through the nature of the relationship with the market participants. In the industry in which Nike operates rivalry is not fierce though there are many niche players, with direct competition coming from Addidas. Nike through the five forces has a higher(prenominal) bargaining power when compared to its competitors, suppliers and customers, because of the brand equity.With a relatively high profit margin, in the sector to attract potential competitors or new entrants, the situation is however difficult for new entrants to enter the line of business, because abundant capital, and capabilities to support after sales services are vital too. Through an