NIKE NUTRITION

The decision to acquire Paragon Laboratories is underpinned by the following;

 

• Full Control Of Supply Chain – With the quality of products and ingredients coming under close scrutiny by both the FDA and the end consumer, incorporating the production of Sports Nutrition Products into the supply chain. It effectively ensures absolute control, and a lack of blurring of Brand Identity in the eyes of the consumers.

 

• Rapid Expansion and Autonomy – The Acquisition of Paragon allows Nike, and subsequently Nike Nutrition, to gain access to the Blue Ocean market space in a far shorter time period. This in turn will allow the company to be far more effective in capitalising on the current structural changes seen within the market, thus maximising the chance of prosperity. Alternatively, attempting to generate such capabilities in-house could prove costly, in terms of time and wasteful expenditure.

 

• Resource Sharing – As Nike is new to the Sports Nutrition industry, absorbing Paragon will ensure that the knowledge needed to penetrate the industry is centralised within the company. Such a situation will ensure greater transparency of knowledge and information, and a stronger sense of solidarity and coherence of strategy between the two previously spate entities.

 

• Capturing Research and Development- Paragon as a Sports Supplement producer are progressive, and through an acquisition Nike can furthers its ability to maintain a competitive advantage in an industry volatile to technological change.