1. Choose a company to use for this discussion.The company can be a U.S.firm,or a firm from any country that is easily researchable using Internet search engines.You may use the same company that you have used in previous discussions,or you may choose a different company.

The company I will be using is Nike.

1. Using the web,familiarize yourself with the company(reviewtheir website as well asrecent news about the company related to the company's business operations,market share,or overall profitability).

Nike is a company that has a large market share of 27.4%. Nike has become the leading business for athletic gear. They are only projected to keep growing and increasing profitability in the next coming years.

1. Explain the company that you have researched,and its business model(i.e.,how it makes money).

Nike's business model is in the business of selling athletic footwear and apparel ranging from all sizes, sports and looks. Nike's business model is innovation and creating the best performance wear on the market. They do with constantly enhancing fabric, feel, weight, and look of their gear. Nike not only wants to have you feel your best while you're performing but also by looking it. With a large slogan of Just Do It. Nike has been the company to constantly market. They use a business model of focusing on its research and development and also partnering with large players, such as Cristiano Ronaldo, Serena Williams and Lebron James. They do to increase popularity and engagement with new products and buying the next best thing.

1. Think about the six(6)ways that firms can achieve economies of scale,and describe how to apply thefollowingto the companyin order to achieve economies of scale:

Specialization:How can this be applied to your business specifically to achieve economies of scale?

Nike has used specialization by being the biggest and most known athletic company selling footwear, apparel, equipment, accessories and services worldwide. By being the largest company Nike has brought in the best engineers and designers to create the best products. These people have been able to specialize Nike for having extremely light weight running shoes, the most comfortable cleats, the best shoes material to combat all weather. Nikes Engineers have specialized in also allowing for them to create the best products and cost the company less in long term average total costs.They are able to decrease production and material costs while achieving economies of scale.

Division of labor:How can this be applied to your business specifically to achieve economies of scale?

Division of labor is how a company can divide its tasks and accomplish overall efficiency for less and reduce production costs. Nike has many departments and teams that divide labor. Nike has a production team, marketing professionals, manufactures and engineers. Nike outsources from many countries that allows for them to cut costs and amplify production.

Advanced technology:How can this be applied to your business specifically to achieve economies of scale?

Nike has advanced technology tremendously with its use of apps, manufacturing and mass assembly. Nike has created a large e-commerce platform with its website and mobile applications. This has increased economies of scale by making it easier for consumers to buy and cutting out the in-store prices of utilities, staff and other costs. Nike has also created a mass production and assembly where they can make apparel faster and cheaper growing supply and cutting costs.

Automation devices:How can this be applied to your business specifically to achieve economies of scale?

Nike has used automation devices such as machinery they use to cut out fabrics, apply plastic on apparel and packaging. Nike uses automation to enhance the process of creating and simplifying the ways they manufacture goods. This has allowed for an increase in materials, cuts labor expenses and Nike can make more goods in a shorter time all increasing the economies of scale.

Quantity discounts:How can this be applied to your business specifically to achieve economies of scale?

Nike can apply quantity discounts by buying materials in bulk at discount. This will lower the cost of production. Nike can do with polyester and many materials that they use on all their products. If Nike applies this they can save money and lower the cost of production in the long-term.

Financial strength (credit):How can this be applied to your business specifically to achieve economies of scale?

Nike is a very strong company with large financial funds and profits. They can easily afford to use credit to grow. When the economy has low interest rates Nike can purchase more materials, technology and other costly purchases to grow. They can then use credit to reduce cost pf production and increase productivity. They could purchase new materials or other advances to mass produce clothing and equipment cutting out so much labor costs and time being spent on creating products.

In your response to each classmate,please answering the following questions below:

1. Of the six (6) ways to achieve economies of scale identified by your classmate's post, which is most feasible for the company to pursue in increasing economic profit?
2. Why did you choose that way (in letter a. above)? Provide five (5) reasons for your choice using microeconomic and macroeconomic concepts and terms in your response.