Nike's vertical integration strategy is on the surface, non existent. However, in my opinion, I see that Nike has vertically integrated various parts of it's business. As stated in my discussion last week for class, I do not believe there's a "one-size-fits-all" strategy when it comes down to what makes a firm or industry more efficient.
To me it would seem it truly depends on what the business is about, where it is in it's age/stage, what the 1 year, 2 year, 5 year goals look like to determine the best approach. Further, it could be appropriate to have certain areas of a business with different strategies...some vertical some not. I think that's the key...
I see Nike as taking this multiple approach strategy to their business model. They have vertically integrated their supply chain operations, and IT solutions but they have left the manufacturing for the most part not integrated. Nike still relies on contracted factories overseas as well as shipping and air of their freight. They do not own those factories or ships/planes/trucks. It would seem this makes the most sense for Nike's overall strategy to get their end product to the consumer in the most economical and efficient way.
It is pretty fascinating to think that back in the day when they first started, it was basically building a shoe from a waffle maker and selling out of a trunk! What a complex, well oiled machine they have built in a relatively short time period.
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