All the organizations grow similar to the living organism and so they also have life cycles. First of all, the organization is established or it is born; here, the product is made by the company which is this case was sportswear by Nike as they invested their money. Then the next stage is of growth where the organization develops but it is through several methods of advertisings as the company and its products are introduced into the market until it reaches the level of maturity. Maturity is the stage where no further growth can be made and from onwards the decline of the organization starts as it enters the declining age; finally it dies or if the owner is clever enough, it will enter into diversification but this is a very rare act (Mietlewski and Walkowiak, 2007). Each product of the organization has to undergo a similar life cycle. Nike is in the sportswear industry which is highly competitive as there are global rivals including Adidas, Reebok, Woodland, Puma and Timberland. The products of the firm have achieved their maximum acceptance and now the quality is being maintained while costs are being cut. The product is mature for the company and so the company is on the third stage which is the maturity stage.
Recently, it has been seen that NIKE intentionally shifted to integrate sustainability in its strategies so that it can move towards the element of growth; it is aware of the fact that sustainability and CSR are the talk of the town. And especially on the stage of maturity where a wise step is needed to enter back into the growth stage, it has taken this step or else it would have entered into the decline phase from where it is not possible to return back. Nike is playing its role to bring innovation and sustainability into the lives of the people as well as in the industry (Dibrell and Craig et al., 2011). The company and the brand are well known to its customers and it has brand loyalty amongst its consumers and so, it is using the tactic of sustainability and CSR to enhance its brand image and enter into growth once again.
References
Dibrell, C., Craig, J. and Hansen, E. (2011). Natural environment, market orientation, and firm innovativeness: An organizational life cycle perspective. Journal of small business management, 49 (3), pp. 467--489.
Mietlewski, Z. and Walkowiak, R. (2007). Knowledge and life cycle of an organization. The Electronic Journal of Knowledge Management, 5 (4).
