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NIKE
Checkpoint 3: Strategic Recommendations
Bo Ament, Colin Best,
Brendan Coughlin, Chase
Frerking, Darrien Horn,
Daniel Jones, Dylan
Morgret, Aaron Platts
Management 4970
MW 12:30 – 1:45 pm
Spring 2015
Group 1
STRATEGIC OVERVIEW
STRATEGIC PLANNING
SWOT analysis
External Analysis
- 5F - MEA - SGA
Internal Analysis
-5S - Fit & Performance
STRATEGIC THINKING
Brainstorming
- Pre-Session
- Session
- Post-Session
STRATEGY MAKING
TOWS Matrix
Strategic Recommendations
SWOT ANALYSIS
Strengths Weaknesses
• Tagline “Just Do It” reverberates with athletes and competitors (SOG)
• High differentiation in products allows Nike to reach a wide variety of
consumers and “athletes” (Strategy)
• Global positioning makes manufacturing and delivery fast and efficient
(Strategy)
• Nike’s financial resources, global supply chain, and established vendor
relations make the firm incredibly efficient (VRIO)
• High global brand recognition (VRIO)
• Extensive R&D program allows Nike to stay at the forefront of their industry,
consistently releasing innovative and technologically advanced products
(VRIO)
• Strong, cult-like company culture (OCA)
• Nike gives employees the flexibility to innovate, within specific guidelines
(OSA)
• SOG & Position fit: reaching every athlete everywhere made possible
through broad differentiation (5S)
• Skills & Position fit: excellent core and end products teamed with a top notch
distribution and manufacturing network leads to satisfying company goals of
innovation and product excellence (5S)
• Nike is in excellent financial positioning, efficiently using assets and capital to
produce industry-leading returns to investors (5S)
• Nike VMPGs too geared toward athlete and less toward average consumer
(SOG)
• Very broad mission statement (SOG)
• Still several CSR complaints keeping Nike from being inspirational (SOG)
• High product prices can lead to consumers switching brand allegiance
(Strategy)
• Continued allegations of abuse and mistreatment of employees at
manufacturing facilities (VRIO)
• Income heavily dependent on Nike’s share of the footwear market (VRIO)
• Sometimes bureaucratic decision-making (OCA)
• Structure & SOGs: organizational structure features little representation from
lower-level workers, blocking significant progress in CSR and manufacturing
facility conditions (5S)
• Style & SOGs: often bureaucratic decision-making means innovative ideas
from front-line sales staff centered with extensive consumer preference
knowledge may not be reaching key decision makers in the company (5S)
Opportunities Threats
• Footwear industry up 25.94% from YAGO (5F)
• Athletic footwear sales have grown 8.6% annually, on average, for the last
three years (5F)
• High psychological/brand differentiation (5F)
• Nike’s younger market dominates premium shoe sales worldwide. (5F)
• Low exit barriers because of subcontracted manufacturing (5F)
• Large manufacturing and distribution economies of scale (5F)
• Subcontracted manufacturing gives Nike great flexibility in meeting higher
demand (5F)
• Thousands of patents on fabrics and designs (5F)
• Low buyer price sensitivity (5F)
• Nike’s average shoe price of $70-75 is double the average price of tennis
shoes ($39.97 in 2013) (5F)
• Average consumer, especially athletic participants, are more fashion-
oriented than ever (5F)
• Emerging markets (Brazil, Mexico, Argentina, etc.) up 30% in footwear sales
(MEA)
• Household median income is on the rise (MEA)
• Four firm strategic group featuring oligopoly; price-war in marketing and
advertising (5F)
• Under Armour’s market share growth is higher than all industry firms,
including Nike (5F)
• Low functional product differentiation (5F)
• Constantly decreasing switching costs due to online distribution and
increasing product knowledge (5F)
• High emotional commitment to legacy due to senior executives and
Bowerman’s powerful past (5F)
• High threat of retaliation for athlete marketing contracts (5F)
• Substitution possible in high-performance niches (running, hiking, etc.) (5F)
• Increasing digital content and high-performance video game consoles could
take away from physical activity, creating less demand for athletic apparel
(MEA)
• Under Armour making the move to a more international company model
(MEA)
• International design patent prices have been increasing in recent years
(MEA)
KEY
SOG = Superordinate Goals Analysis OSA = Organizational Structure
Analysis
Strategy = Strategy (Position)
Analysis
5S = Modified 5S (Fit) Analysis
VRIO = VRIO/Core Competency
Analysis
5F = Five Forces Analysis
OCA = Organizational Culture
Analysis
MEA = Macroenvironmental Analysis
SWOT ANALYSIS
Strengths Weaknesses
• Tagline “Just Do It” reverberates with athletes and competitors (SOG)
• High differentiation in products allows Nike to reach a wide variety of
consumers and “athletes” (Strategy)
• Global positioning makes manufacturing and delivery fast and efficient
(Strategy)
• Nike’s financial resources, global supply chain, and established vendor
relations make the firm incredibly efficient (VRIO)
• High global brand recognition (VRIO)
• Extensive R&D program allows Nike to stay at the forefront of their industry,
consistently releasing innovative and technologically advanced products
(VRIO)
• Strong, cult-like company culture (OCA)
• Nike gives employees the flexibility to innovate, within specific guidelines
(OSA)
• SOG & Position fit: reaching every athlete everywhere made possible
through broad differentiation (5S)
• Skills & Position fit: excellent core and end products teamed with a top notch
distribution and manufacturing network leads to satisfying company goals of
innovation and product excellence (5S)
• Nike is in excellent financial positioning, efficiently using assets and capital to
produce industry-leading returns to investors (5S)
• Nike VMPGs too geared toward athlete and less toward average consumer
(SOG)
• Very broad mission statement (SOG)
• Still several CSR complaints keeping Nike from being inspirational (SOG)
• High product prices can lead to consumers switching brand allegiance
(Strategy)
• Continued allegations of abuse and mistreatment of employees at
manufacturing facilities (VRIO)
• Income heavily dependent on Nike’s share of the footwear market (VRIO)
• Sometimes bureaucratic decision-making (OCA)
• Structure & SOGs: organizational structure features little representation from
lower-level workers, blocking significant progress in CSR and manufacturing
facility conditions (5S)
• Style & SOGs: often bureaucratic decision-making means innovative ideas
from front-line sales staff centered with extensive consumer preference
knowledge may not be reaching key decision makers in the company (5S)
Opportunities Threats
• Footwear industry up 25.94% from YAGO (5F)
• Athletic footwear sales have grown 8.6% annually, on average, for the last
three years (5F)
• High psychological/brand differentiation (5F)
• Nike’s younger market dominates premium shoe sales worldwide. (5F)
• Low exit barriers because of subcontracted manufacturing (5F)
• Large manufacturing and distribution economies of scale (5F)
• Subcontracted manufacturing gives Nike great flexibility in meeting higher
demand (5F)
• Thousands of patents on fabrics and designs (5F)
• Low buyer price sensitivity (5F)
• Nike’s average shoe price of $70-75 is double the average price of tennis
shoes ($39.97 in 2013) (5F)
• Average consumer, especially athletic participants, are more fashion-
oriented than ever (5F)
• Emerging markets (Brazil, Mexico, Argentina, etc.) up 30% in footwear sales
(MEA)
• Household median income is on the rise (MEA)
• Four firm strategic group featuring oligopoly; price-war in marketing and
advertising (5F)
• Under Armour’s market share growth is higher than all industry firms,
including Nike (5F)
• Low functional product differentiation (5F)
• Constantly decreasing switching costs due to online distribution and
increasing product knowledge (5F)
• High emotional commitment to legacy due to senior executives and
Bowerman’s powerful past (5F)
• High threat of retaliation for athlete marketing contracts (5F)
• Substitution possible in high-performance niches (running, hiking, etc.) (5F)
• Increasing digital content and high-performance video game consoles could
take away from physical activity, creating less demand for athletic apparel
(MEA)
• Under Armour making the move to a more international company model
(MEA)
• International design patent prices have been increasing in recent years
(MEA)
KEY
SOG = Superordinate Goals Analysis OSA = Organizational Structure
Analysis
Strategy = Strategy (Position)
Analysis
5S = Modified 5S (Fit) Analysis
VRIO = VRIO/Core Competency
Analysis
5F = Five Forces Analysis
OCA = Organizational Culture
Analysis
MEA = Macroenvironmental Analysis
STRATEGIC PLANNING
• STRATEGIC PLANNING
• Overview of past analyses
• SWOT
•
•
•
•
•
•
•
•
•
•
•
STRATEGIC PLANNING
SWOT analysis
External Analysis
- 5F - MEA - SGA
Internal Analysis
-5S - Fit & Performance
STRATEGIC THINKING
Brainstorming
- Pre-Session
- Session
- Post-Session
STRATEGY MAKING
TOWS Matrix
Strategic Recommendations
STRATEGIC
PLANNING
STRATEGIC THINKING
STRATEGY MAKING
STRATEGIC THINKING
•
•
•
• STRATEGIC THINKING
• Pre-Session
• Session
• Post-brainstorm
•
•
•
•
•
•
STRATEGIC PLANNING
SWOT analysis
External Analysis
- 5F - MEA - SGA
Internal Analysis
-5S - Fit & Performance
STRATEGIC THINKING
Brainstorming
- Pre-Session
- Session
- Post-Session
STRATEGY MAKING
TOWS Matrix
Strategic Recommendations
STRATEGIC
PLANNING
STRATEGIC THINKING
STRATEGY MAKING
BRAINSTORMING – PRE-SESSION
• Darrien
• Nike NBA jersey contract
• Possible store construction NBA arenas
• Colin
• Nike Weekend Showcase
• Chase
• Nike athlete global athletic competitions
• Brendan
• Nike return rewards for charitable contributions
• Charitable contribution brand competition/add
campaign
• Nike Field Day youth health promotion campaign
• Aaron
• Customer spec shoes (possible shoe specialty store)
• Nike World with seasons
• Dylan
• Outdoor apparel and gear (especially hunting; compete
for share with UA
• Ad campaign and possible clothing line directed at older
and/or less athletic persons
• Bo
• Extend further into extreme sports (apparel and/or
sponsorships)
• Daniel
• Puma hostile takeover
• R&D more on Nike Plus capabilities
• Get into performance nutrition (ex: Gatorade’s gel
packets)
STRATEGIC
PLANNING
STRATEGIC THINKING
STRATEGY MAKING
BRAINSTORMING - SESSION
New Ideas:
• Nike youth parks
• Possible host for Nike Field
Day, health promotion
• Total youth health promotion
campaign
• Market Segment Penetration
• Redefine what an athlete is
• Combination of
recommendations
• Combine small initiatives into
larger, wider-reaching plans
STRATEGIC
PLANNING
STRATEGIC THINKING
STRATEGY MAKING
BRAINSTORMING – POST-SESSION
• Analyzed how brainstormed
recommendations fit into the
SWOT Matrix
• Selected Champion
Strategies with consideration
to SWOT, feasibility, and
market impact
STRATEGIC PLANNING
SWOT analysis
External Analysis
- 5F - MEA - SGA
Internal Analysis
-5S - Fit & Performance
STRATEGIC THINKING
Brainstorming
- Pre-Session
- Session
- Post-Session
STRATEGY MAKING
TOWS Matrix
Strategic Recommendations
STRATEGIC
PLANNING
STRATEGIC THINKING
STRATEGY MAKING
STRATEGIC THINKING
•
•
•
• STRATEGIC THINKING
• Brainstorming
• Pre-Session
• Session
• Post-brainstorm
•
•
•
•
•
•
STRATEGIC
PLANNING
SWOT analysis
External Analysis
-5F - MEA - SGA
Internal Analysis
STRATEGIC
THINKING
Brainstorming
Pre-Session
Session
Post-Session
STRATEGY MAKING
TOWS Matrix
Strategic Recommendations
STRATEGIC
PLANNING
STRATEGIC THINKING
STRATEGY MAKING
STRATEGY MAKING
•
•
•
•
•
•
•
•
• STRATEGY MAKING
• TOWS Matrix
• Strategic Recommendations
•
•
•
STRATEGIC
PLANNING
SWOT analysis
External Analysis
-5F - MEA - SGA
Internal Analysis
STRATEGIC
THINKING
Brainstorming
Pre-Session
Session
Post-Session
STRATEGY MAKING
TOWS Matrix
Strategic Recommendations
STRATEGIC
PLANNING
STRATEGIC THINKING
STRATEGY MAKING
STRATEGIC
RECOMMENDATIONS:
TOWS MATRIX
Strengths Weaknesses
• Tagline “Just Do It” reverberates with athletes and competitors (SOG)
• High differentiation in products allows Nike to reach a wide variety of consumers and
“athletes” (Strategy)
• Global positioning makes manufacturing and delivery fast and efficient (Strategy)
• Nike’s financial resources, global supply chain, and established vendor relations make
the firm incredibly efficient (VRIO)
• High global brand recognition (VRIO)
• Extensive R&D program allows Nike to stay at the forefront of their industry,
consistently releasing innovative and technologically advanced products (VRIO)
• Strong, cult-like company culture (OCA)
• Nike gives employees the flexibility to innovate, within specific guidelines (OSA)
• SOG & Position fit: reaching every athlete everywhere made possible through
broad differentiation (5S)
• Skills & Position fit: excellent core and end products teamed with a top notch distribution
and manufacturing network leads to satisfying company goals of innovation and product
excellence (5S)
• Nike is in excellent financial positioning, efficiently using assets and capital to produce
industry-leading returns to investors (5S)
• Nike VMPGs too geared toward athlete and less toward average consumer
(SOG)
• Very broad mission statement (SOG)
• Still several CSR complaints keeping Nike from being inspirational (SOG)
• High product prices can lead to consumers switching brand allegiance
(Strategy)
• Continued allegations of abuse and mistreatment of employees at
manufacturing facilities (VRIO)
• Income heavily dependent on Nike’s share of the footwear market (VRIO)
• Sometimes bureaucratic decision-making (OCA)
• Structure & SOGs: organizational structure features little representation from
lower-level workers, blocking significant progress in CSR and manufacturing
facility conditions (5S)
• Style & SOGs: often bureaucratic decision-making means innovative ideas
from front-line sales staff centered with extensive consumer preference
knowledge may not be reaching key decision makers in the company (5S)
Opportunities SO Strategies WO Strategies
• Footwear industry up 25.94% from YAGO (5F)
• Athletic footwear sales have grown 8.6% annually, on average, for the last
three years (5F)
• High psychological/brand differentiation (5F)
• Nike’s younger market dominates premium shoe sales worldwide (5F)
• Low exit barriers because of subcontracted manufacturing (5F)
• Large manufacturing and distribution economies of scale (5F)
• Subcontracted manufacturing gives Nike great flexibility in meeting higher
demand (5F)
• Thousands of patents on fabrics and designs (5F)
• Low buyer price sensitivity (5F)
• Nike’s average shoe price of $70-75 is double the average price of tennis
shoes ($39.97 in 2013) (5F)
• Average consumer, especially athletic participants, are more fashion-
oriented than ever (5F)
• Emerging markets (Brazil, Mexico, Argentina, etc.) up 30% in footwear
sales (MEA)
• Household median income is on the rise (MEA)
Nike Showcase
• Strengths: Extensive R&D program allows Nike to
stay at the forefront of their industry, consistently
releasing innovative and technologically advanced
products (VRIO)
• High global brand recognition (VRIO)
• Opportunities: Emerging markets (Brazil, Mexico,
Argentina, etc.) up 30% in footwear sales (MEA)
• Average consumer, especially athletic participants,
are more fashion-oriented than ever (5F)
Nike Parks
• Weaknesses: Still several CSR complaints keeping
Nike from being inspirational (SOG)
• Opportunities: Nike’s younger market dominates
premium shoe sales worldwide (5F)
Threats ST Strategies WT Strategies
• Four firm strategic group featuring oligopoly; price-war in marketing and
advertising (5F)
• Under Armour’s market share growth is higher than all industry firms,
including Nike (5F)
• Low functional product differentiation (5F)
• Constantly decreasing switching costs due to online distribution and increasing
product knowledge (5F)
• High emotional commitment to legacy due to senior executives and
Bowerman’s powerful past (5F)
• High threat of retaliation for athlete marketing contracts (5F)
• Substitution possible in high-performance niches (running, hiking, etc.) (5F)
• Increasing digital content and high-performance video game consoles could
take away from physical activity, creating less demand for athletic apparel
(MEA)
• Under Armour making the move to a more international company model (MEA)
• International design patent prices have been increasing in recent years (MEA)
• Aging population doesn’t cater to Nike’s hold on youth market (MEA)
• Baby boomers moving spending habits from clothing and entertainment
to healthcare as they age (MEA)
NBA Penetration
• Strengths: Tagline “Just Do It” reverberates with
athletes and competitors (SOG)
• Reaching every athlete everywhere made possible
through broad differentiation (5S)
• Threats: Under Armour’s market share growth is
higher than all industry firms, including Nike (5F)
• Four firm strategic group featuring oligopoly; price-
war in marketing and advertising (5F)
Redefining The Athlete
• Weaknesses: Nike VMPGs too geared toward
athlete and less toward average consumer (SOG)
• Threats: Aging population doesn’t cater to Nike’s
hold on youth market (MEA)
• Baby boomers moving spending habits from clothing
and entertainment to healthcare as they age (MEA)
NIKE STRATEGIC
RECOMMENDATION DRAFT
NIKE INC: KEY DRAFT “STATS”
• HQ In Beaverton, Oregon
• Brand alone valued at $19 billion in 2014
• Employs over 56,500 people worldwide
• Market cap of $86.5 billion
• Over $30 billion in revenue in 2014
• Contracts with athletes such as Lebron James, Tiger Woods,
Michael Jordan, Kevin Durant, and Andrew McCutchen
• “Just Do It” and Nike Swoosh – two of the most recognizable
images in sports
STRATEGIC
PLANNING
STRATEGIC THINKING
STRATEGY MAKING
CHAMPION RECCOMENDATION 1: NBA PENETRATION
• NBA Penetration
• NBA Jersey contract
• NBA arena store entry to possibly replace Adidas
STRATEGIC
PLANNING
STRATEGIC THINKING
STRATEGY MAKING
STRATEGIC
RECOMMENDATIONS:
TOWS MATRIX
Strengths Weaknesses
• Income heavily dependent on
Nike’s share of the footwear
market (VRIO)
Threats
• Four firm strategic group
featuring oligopoly; price-war
in marketing and advertising
(5F)
• Under Armour’s market share
growth is higher than all
industry firms, including Nike
(5F)
NBA Penetration
• Weaknesses: Income heavily dependent
on Nike’s share of the footwear market
(VRIO)
• Threats: Under Armour’s market share
growth is higher than all industry firms,
including Nike (5F)
• Four firm strategic group featuring
oligopoly; price-war in marketing and
advertising (5F)
CHAMPION RECCOMENDATION 2: NIKE PARKS/YOUTH MOVEMENT
• “Just Do It” – Youth Movement
• Nike Parks
• Field Day – hosted either at parks or schools
• Health/physical activity awareness and promotion
STRATEGIC
PLANNING
STRATEGIC THINKING
STRATEGY MAKING
STRATEGIC
RECOMMENDATIONS:
TOWS MATRIX
Strengths Weaknesses
• Still several CSR complaints
keeping Nike from being
inspirational (SOG)
Opportunities WO Strategies
• Nike’s younger market
dominates premium shoe sales
worldwide (5F)
Nike Parks
• Weaknesses: Still several CSR
complaints keeping Nike from being
inspirational (SOG)
• Opportunities: Nike’s younger market
dominates premium shoe sales
worldwide (5F)
Threats
CHAMPION RECCOMENDATIONS 3: REDEFINING THE
ATHLETE
• “Redefining an Athlete”
• Ad campaign targeted at less athletic and/or middle aged
adults
• Custom sole construction at Nike stores to tailor to unique
athletic needs or requests
STRATEGIC
PLANNING
STRATEGIC THINKING
STRATEGY MAKING
STRATEGIC
RECOMMENDATIONS:
TOWS MATRIX
Strengths Weaknesses
• Nike VMPGs too geared toward
athlete and less toward average
consumer (SOG)
Threats WT Strategies
• Aging population doesn’t cater
to Nike’s hold on youth market
(MEA)
• Baby boomers moving
spending habits from clothing
and entertainment to healthcare
as they age (MEA)
Redefining The Athlete
• Weaknesses: Nike VMPGs too geared
toward athlete and less toward average
consumer (SOG)
• Threats: Aging population doesn’t cater to
Nike’s hold on youth market (MEA)
• Baby boomers moving spending habits from
clothing and entertainment to healthcare as
they age (MEA)
CHAMPION RECOMMENDATION 4:
NIKE SHOWCASE
STRATEGIC
PLANNING
STRATEGIC THINKING
STRATEGY MAKING
CHAMPION RECOMMENDATION 4:
NIKE SHOWCASE
• Nike’s top endorsees will participate in a fan-oriented showcase to
highlight Nike’s current partnerships and new products
• Two separate events, one held in United states, highlighting Nike’s NBA
endorsees, and another held in Brazil, highlighting Nike’s soccer
endorsements
• Generate PR campaign by donating a portion of revenue to help fight
child labor laws and sweatshops
• Give customers/ fans a chance to see Nike’s new products in an action
packed fashion show environment
STRATEGIC
PLANNING
STRATEGIC THINKING
STRATEGY MAKING
STRATEGIC
RECOMMENDATIONS:
TOWS MATRIX
Strengths Weaknesses
• High global brand recognition
(VRIO)
• Extensive R&D program allows
Nike to stay at the forefront of
their industry, consistently
releasing innovative and
technologically advanced
products (VRIO
Opportunities
• Average consumer, especially
athletic participants, are more
fashion-oriented than ever (5F)
• Emerging markets (Brazil,
Mexico, Argentina, etc.) up 30%
in footwear sales (MEA)
Nike Showcase
• Strengths: Extensive R&D program allows Nike to
stay at the forefront of their industry, consistently
releasing innovative and technologically advanced
products (VRIO)
• High global brand recognition (VRIO)
• Opportunities: Average consumer, especially
athletic participants, are more fashion-oriented
than ever (5F)
• Emerging markets (Brazil, Mexico, Argentina, etc.)
up 30% in footwear sales (MEA)
Threats
CONCLUSION
STRATEGY: A SEMESTER’S LEARNINGS
Strategy isn’t everything. . .
Leadership is a potent combination of strategy and character. But if you
must be without one, be without the strategy. – Norman Schwarzkopf
But its probably behind most successful ventures. . .
All men can see these tactics whereby I conquer, but what none can
see is the strategy out of which victory is evolved – Sun Tzu
But lets not forget the end goal. . .
A satisfied customer is the best business strategy of all – Michael
LeBoeuf
REFERENCES
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Barbara, Brenner. Inside the NIKE Matrix * (n.d.): n. pag. Jörn Ambos and Bodo B. Schlegelmilch, The New Role of Regional Management , 2010, Hampshire: Palgrave
Macmillan, 2010. Web. 2015.
Brown, Melanie. "“It’s Not About the Shoes”: How Nike’s Advertising Crosses Borders and Transcends Nationality." Melanie Brown, 19 June 2011. Web. 14 Apr.
2015.
Cheng, Andria. Nike was awarded 540 patents in 2013: Here’s what that means for investors. 17 April 2014.
<http://blogs.marketwatch.com/behindthestorefront/2014/04/17/nike-was-awarded-540-patents-in-2013-heres-what-that-means-for-investors/>.
Chiles, Todd. "Management 4970 - Strategic Management." Columbia, January 2015. 11. 05 April 2015.
Cramer, Bob. Athletics Footwear Industry: No Hurdles In Sight. 9 October 2013. <http://www.bidnessetc.com/20791-athletics-footwear-industry-hurdles-sight/ >.
Farfan, Barbara. "Company Mission Statements." About Money. N.p., n.d. Web. 3 Apr. 2015.
Fontana, Evan J. "Adidas in 2009: Has Corporate Restructuring Increased Shareholder Value?" Academia (2012): 1-7.
Frisch, Aaron. The Story of Nike. Creative Education, 2009.
Goldman, Robert and Stephen Papson. Nike Culture. SAGE, 1998.
Harris, Randy. "Nike, Inc. --2010." Strategic Management: Concepts and Cases (2011).
Hill, Charles, and Gareth Jones. Strategic Management: An Integrated Approach. N.p.: Cengage Learning, n.d. Cengage Learning, 27 Oct. 2007. Web. 14 Apr. 2015.
Jacklet, Ben. "Olympics Give Nike's China Sales a Huge Boost." Olympics Give Nike's China Sales a Huge Boost. N.p., 1 Nov. 2008. Web. 22 Feb. 2015.
REFERENCES
Jackson, Lisa. "How Nike Drives Innovation & Change." Corporate Culture Pros. N.p., 03 June 2013. Web. 15 Apr. 2015.
Jay, Mary Lou. "Nike, Inc.: High Profile Brand, High Expectations." January 2015. ServiceChannel. 14 April 2015. <http://corp.servicechannel.com/wp-
content/uploads/2014/07/PRSM-JanFeb2015-Nike-High-Profile-Brand-High-Expectations-1.pdf>.
Kollegian, Les. Nike's 11 Maxims. 22 June 2010. 14 April 2015. <http://www.jacobtyler.com/nikes-11-maxims/>.
Little, Trevor. "Nike Named the Most Counterfeited Brand, but Statistics Don't Give the Full Picture 30 Jun 14." Nike Named the Most Counterfeited Brand, but Statistics Don't Give
the Full Picture. N.p., 30 June 2014. Web. 22 Feb. 2015.
Loth, RIchard. Profitability Indicator Ratios. n.d. 12 April 2015. <http://www.investopedia.com/university/ratios/profitability-indicator/>.
Luhby, Tami. "Median Income Is on the Rise ... Finally!" CNNMoney. Cable News Network, 20 Aug. 2014. Web. 11 Feb. 2015.
Mergent Online. n.d. 9 April 2015. <http://www.mergentonline.com/login.php>.
“Nike. Corporate Social Responsibility.” Workers and Factories. Overview - NIKE, Inc. N.p., n.d. Web. 10 Apr. 2015. http://www.nikebiz.com/crreport/content/workers-and-
factories/3-1-0-overview.php?cat=overview
Nanji, Ayaz. "Consumer Price Sensitivity and Deal Seeking Up in 2013."MarketingProfs. N.p., 24 May 2014. Web. 22 Feb. 2015.
New York Times . February 2015. <http://markets.on.nytimes.com/research/markets/usmarkets/industry.asp?industry=53223>.
Nike Inc FInancial Statements. n.d. 09 April 2015. <http://financials.morningstar.com/balance-sheet/bs.html?t=NKE>
"Nike Makers." Nike Makers. N.p., n.d. Web. 15 Apr. 2015.
"Nike, Inc." Wikipedia. Wikimedia Foundation, n.d. Web. 03 May 2015.
"Nike FAQs | Global Exchange." Nike FAQs | Global Exchange. N.p., n.d. Web. 19 Feb. 2015
REFERENCES
"Nike Sustainability Timeline." Nike Sustainability Timeline. N.p., n.d. Web. 15 Apr. 2015.
"Nike, Under Armour Could Battle for NBA Contract as Adidas Bows out." Yahoo, 17 Mar. 2015. Web.
Nisen, Max. "At Nike, Workers Quote The Company's Maxims Like The Ten Commandments." Business Insider (2013).
Nisen, Max. "How Nike Solved Its Sweatshop Problem." Business Insider. Business Insider, Inc, 09 May 2013. Web. 11 Feb. 2015
Peterson, Hayley. "Nike Outbids Under Armour's Mega Offer And Re-Signs Kevin Durant." Business Insider (2012).
Plank, Kevin. "Under Armour's Founder on Learning to Leverage Celebrity Endorsement." Harvard Business Review May 2012.
Pradhan, Phoebe. "Nike Strives to Overcome Sweatshop Abuse - The Borgen Project." The Borgen Project. N.p., 15 Feb. 2014. Web. 10 Apr. 2015. http://borgenproject.org/nike-
strives-to-overcome-sweatshop-abuse/
Riper, Tom V. "Nike Risks Millions Going All In With McIlroy." Forbes. Forbes Magazine, 15 Jan. 2013. Web. 7 Apr. 2015. http://www.forbes.com/sites/tomvanriper/2013/01/15/nike-
risks-millions-going-all-in-with-mcilroy/
Schachtel, Alexander. "How Nike’s Business Is Doing It Just Right Overseas."The Cheat Sheet. N.p., 26 July 2011. Web. 22 Feb. 2015.
Singh, Anoopa. "No More Video Games: Limiting Electronics Use Can Improve Your Child's Physical Activity And Health." Medical Daily. BMJ, 1 July 2013. Web. 20 Feb. 2015.
"The Secret To Brand Loyalty We Can All Learn From Nike." Social Media Agency Social Control. N.p., 07 Jan. 2015. Web. 6 Apr. 2015. http://socialcontrol.com/the-secret-to-brand-
loyalty-we-can-all-learn-from-nike/
"Trade." 7.1 Advocacy in Action. Nikebiz, n.d. Web. 22 Feb. 2015.
REFERENCES
Trefis Team. "Why Nike Will Outpace The Sports Apparel Market's Growth." Forbes. Forbes Magazine, 5 May 2013. Web. 21 Feb. 2015
Vogel, Lorrie. "Nike's Gameplan for Growth that's Good for All." 11 May 2012. Management Innovation eXchange. 14 April 2015.
<http://www.managementexchange.com/story/nike%E2%80%99s-gameplan-growth-that%E2%80%99s-good-all>.
Wharton Research Data Services. n.d. Wharton University of Pennsylvania. online database. 8 April 2015. <https://wrds-
web.wharton.upenn.edu/wrds/ds/finstate/indexqtr.cfm>.
"Working at NIKE." Glassdoor. N.p., n.d. Web. 7 Apr. 2015. http://www.glassdoor.com/Overview/Working-at-NIKE-EI_IE1699.11,15.htm
Wharton Research Data Services . WRDS. Prod. University of Pennsylvania The Wharton School. Pennsylvania , 22 Februry 2015.
"World Age Structure." Index Mundi. N.p., 2014. Web. 03 May 2015.

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Checkpoint 3 - Master Copy

  • 1. NIKE Checkpoint 3: Strategic Recommendations Bo Ament, Colin Best, Brendan Coughlin, Chase Frerking, Darrien Horn, Daniel Jones, Dylan Morgret, Aaron Platts Management 4970 MW 12:30 – 1:45 pm Spring 2015 Group 1
  • 2. STRATEGIC OVERVIEW STRATEGIC PLANNING SWOT analysis External Analysis - 5F - MEA - SGA Internal Analysis -5S - Fit & Performance STRATEGIC THINKING Brainstorming - Pre-Session - Session - Post-Session STRATEGY MAKING TOWS Matrix Strategic Recommendations
  • 3. SWOT ANALYSIS Strengths Weaknesses • Tagline “Just Do It” reverberates with athletes and competitors (SOG) • High differentiation in products allows Nike to reach a wide variety of consumers and “athletes” (Strategy) • Global positioning makes manufacturing and delivery fast and efficient (Strategy) • Nike’s financial resources, global supply chain, and established vendor relations make the firm incredibly efficient (VRIO) • High global brand recognition (VRIO) • Extensive R&D program allows Nike to stay at the forefront of their industry, consistently releasing innovative and technologically advanced products (VRIO) • Strong, cult-like company culture (OCA) • Nike gives employees the flexibility to innovate, within specific guidelines (OSA) • SOG & Position fit: reaching every athlete everywhere made possible through broad differentiation (5S) • Skills & Position fit: excellent core and end products teamed with a top notch distribution and manufacturing network leads to satisfying company goals of innovation and product excellence (5S) • Nike is in excellent financial positioning, efficiently using assets and capital to produce industry-leading returns to investors (5S) • Nike VMPGs too geared toward athlete and less toward average consumer (SOG) • Very broad mission statement (SOG) • Still several CSR complaints keeping Nike from being inspirational (SOG) • High product prices can lead to consumers switching brand allegiance (Strategy) • Continued allegations of abuse and mistreatment of employees at manufacturing facilities (VRIO) • Income heavily dependent on Nike’s share of the footwear market (VRIO) • Sometimes bureaucratic decision-making (OCA) • Structure & SOGs: organizational structure features little representation from lower-level workers, blocking significant progress in CSR and manufacturing facility conditions (5S) • Style & SOGs: often bureaucratic decision-making means innovative ideas from front-line sales staff centered with extensive consumer preference knowledge may not be reaching key decision makers in the company (5S) Opportunities Threats • Footwear industry up 25.94% from YAGO (5F) • Athletic footwear sales have grown 8.6% annually, on average, for the last three years (5F) • High psychological/brand differentiation (5F) • Nike’s younger market dominates premium shoe sales worldwide. (5F) • Low exit barriers because of subcontracted manufacturing (5F) • Large manufacturing and distribution economies of scale (5F) • Subcontracted manufacturing gives Nike great flexibility in meeting higher demand (5F) • Thousands of patents on fabrics and designs (5F) • Low buyer price sensitivity (5F) • Nike’s average shoe price of $70-75 is double the average price of tennis shoes ($39.97 in 2013) (5F) • Average consumer, especially athletic participants, are more fashion- oriented than ever (5F) • Emerging markets (Brazil, Mexico, Argentina, etc.) up 30% in footwear sales (MEA) • Household median income is on the rise (MEA) • Four firm strategic group featuring oligopoly; price-war in marketing and advertising (5F) • Under Armour’s market share growth is higher than all industry firms, including Nike (5F) • Low functional product differentiation (5F) • Constantly decreasing switching costs due to online distribution and increasing product knowledge (5F) • High emotional commitment to legacy due to senior executives and Bowerman’s powerful past (5F) • High threat of retaliation for athlete marketing contracts (5F) • Substitution possible in high-performance niches (running, hiking, etc.) (5F) • Increasing digital content and high-performance video game consoles could take away from physical activity, creating less demand for athletic apparel (MEA) • Under Armour making the move to a more international company model (MEA) • International design patent prices have been increasing in recent years (MEA) KEY SOG = Superordinate Goals Analysis OSA = Organizational Structure Analysis Strategy = Strategy (Position) Analysis 5S = Modified 5S (Fit) Analysis VRIO = VRIO/Core Competency Analysis 5F = Five Forces Analysis OCA = Organizational Culture Analysis MEA = Macroenvironmental Analysis
  • 4. SWOT ANALYSIS Strengths Weaknesses • Tagline “Just Do It” reverberates with athletes and competitors (SOG) • High differentiation in products allows Nike to reach a wide variety of consumers and “athletes” (Strategy) • Global positioning makes manufacturing and delivery fast and efficient (Strategy) • Nike’s financial resources, global supply chain, and established vendor relations make the firm incredibly efficient (VRIO) • High global brand recognition (VRIO) • Extensive R&D program allows Nike to stay at the forefront of their industry, consistently releasing innovative and technologically advanced products (VRIO) • Strong, cult-like company culture (OCA) • Nike gives employees the flexibility to innovate, within specific guidelines (OSA) • SOG & Position fit: reaching every athlete everywhere made possible through broad differentiation (5S) • Skills & Position fit: excellent core and end products teamed with a top notch distribution and manufacturing network leads to satisfying company goals of innovation and product excellence (5S) • Nike is in excellent financial positioning, efficiently using assets and capital to produce industry-leading returns to investors (5S) • Nike VMPGs too geared toward athlete and less toward average consumer (SOG) • Very broad mission statement (SOG) • Still several CSR complaints keeping Nike from being inspirational (SOG) • High product prices can lead to consumers switching brand allegiance (Strategy) • Continued allegations of abuse and mistreatment of employees at manufacturing facilities (VRIO) • Income heavily dependent on Nike’s share of the footwear market (VRIO) • Sometimes bureaucratic decision-making (OCA) • Structure & SOGs: organizational structure features little representation from lower-level workers, blocking significant progress in CSR and manufacturing facility conditions (5S) • Style & SOGs: often bureaucratic decision-making means innovative ideas from front-line sales staff centered with extensive consumer preference knowledge may not be reaching key decision makers in the company (5S) Opportunities Threats • Footwear industry up 25.94% from YAGO (5F) • Athletic footwear sales have grown 8.6% annually, on average, for the last three years (5F) • High psychological/brand differentiation (5F) • Nike’s younger market dominates premium shoe sales worldwide. (5F) • Low exit barriers because of subcontracted manufacturing (5F) • Large manufacturing and distribution economies of scale (5F) • Subcontracted manufacturing gives Nike great flexibility in meeting higher demand (5F) • Thousands of patents on fabrics and designs (5F) • Low buyer price sensitivity (5F) • Nike’s average shoe price of $70-75 is double the average price of tennis shoes ($39.97 in 2013) (5F) • Average consumer, especially athletic participants, are more fashion- oriented than ever (5F) • Emerging markets (Brazil, Mexico, Argentina, etc.) up 30% in footwear sales (MEA) • Household median income is on the rise (MEA) • Four firm strategic group featuring oligopoly; price-war in marketing and advertising (5F) • Under Armour’s market share growth is higher than all industry firms, including Nike (5F) • Low functional product differentiation (5F) • Constantly decreasing switching costs due to online distribution and increasing product knowledge (5F) • High emotional commitment to legacy due to senior executives and Bowerman’s powerful past (5F) • High threat of retaliation for athlete marketing contracts (5F) • Substitution possible in high-performance niches (running, hiking, etc.) (5F) • Increasing digital content and high-performance video game consoles could take away from physical activity, creating less demand for athletic apparel (MEA) • Under Armour making the move to a more international company model (MEA) • International design patent prices have been increasing in recent years (MEA) KEY SOG = Superordinate Goals Analysis OSA = Organizational Structure Analysis Strategy = Strategy (Position) Analysis 5S = Modified 5S (Fit) Analysis VRIO = VRIO/Core Competency Analysis 5F = Five Forces Analysis OCA = Organizational Culture Analysis MEA = Macroenvironmental Analysis
  • 5. STRATEGIC PLANNING • STRATEGIC PLANNING • Overview of past analyses • SWOT • • • • • • • • • • • STRATEGIC PLANNING SWOT analysis External Analysis - 5F - MEA - SGA Internal Analysis -5S - Fit & Performance STRATEGIC THINKING Brainstorming - Pre-Session - Session - Post-Session STRATEGY MAKING TOWS Matrix Strategic Recommendations STRATEGIC PLANNING STRATEGIC THINKING STRATEGY MAKING
  • 6. STRATEGIC THINKING • • • • STRATEGIC THINKING • Pre-Session • Session • Post-brainstorm • • • • • • STRATEGIC PLANNING SWOT analysis External Analysis - 5F - MEA - SGA Internal Analysis -5S - Fit & Performance STRATEGIC THINKING Brainstorming - Pre-Session - Session - Post-Session STRATEGY MAKING TOWS Matrix Strategic Recommendations STRATEGIC PLANNING STRATEGIC THINKING STRATEGY MAKING
  • 7. BRAINSTORMING – PRE-SESSION • Darrien • Nike NBA jersey contract • Possible store construction NBA arenas • Colin • Nike Weekend Showcase • Chase • Nike athlete global athletic competitions • Brendan • Nike return rewards for charitable contributions • Charitable contribution brand competition/add campaign • Nike Field Day youth health promotion campaign • Aaron • Customer spec shoes (possible shoe specialty store) • Nike World with seasons • Dylan • Outdoor apparel and gear (especially hunting; compete for share with UA • Ad campaign and possible clothing line directed at older and/or less athletic persons • Bo • Extend further into extreme sports (apparel and/or sponsorships) • Daniel • Puma hostile takeover • R&D more on Nike Plus capabilities • Get into performance nutrition (ex: Gatorade’s gel packets) STRATEGIC PLANNING STRATEGIC THINKING STRATEGY MAKING
  • 8. BRAINSTORMING - SESSION New Ideas: • Nike youth parks • Possible host for Nike Field Day, health promotion • Total youth health promotion campaign • Market Segment Penetration • Redefine what an athlete is • Combination of recommendations • Combine small initiatives into larger, wider-reaching plans STRATEGIC PLANNING STRATEGIC THINKING STRATEGY MAKING
  • 9. BRAINSTORMING – POST-SESSION • Analyzed how brainstormed recommendations fit into the SWOT Matrix • Selected Champion Strategies with consideration to SWOT, feasibility, and market impact STRATEGIC PLANNING SWOT analysis External Analysis - 5F - MEA - SGA Internal Analysis -5S - Fit & Performance STRATEGIC THINKING Brainstorming - Pre-Session - Session - Post-Session STRATEGY MAKING TOWS Matrix Strategic Recommendations STRATEGIC PLANNING STRATEGIC THINKING STRATEGY MAKING
  • 10. STRATEGIC THINKING • • • • STRATEGIC THINKING • Brainstorming • Pre-Session • Session • Post-brainstorm • • • • • • STRATEGIC PLANNING SWOT analysis External Analysis -5F - MEA - SGA Internal Analysis STRATEGIC THINKING Brainstorming Pre-Session Session Post-Session STRATEGY MAKING TOWS Matrix Strategic Recommendations STRATEGIC PLANNING STRATEGIC THINKING STRATEGY MAKING
  • 11. STRATEGY MAKING • • • • • • • • • STRATEGY MAKING • TOWS Matrix • Strategic Recommendations • • • STRATEGIC PLANNING SWOT analysis External Analysis -5F - MEA - SGA Internal Analysis STRATEGIC THINKING Brainstorming Pre-Session Session Post-Session STRATEGY MAKING TOWS Matrix Strategic Recommendations STRATEGIC PLANNING STRATEGIC THINKING STRATEGY MAKING
  • 12. STRATEGIC RECOMMENDATIONS: TOWS MATRIX Strengths Weaknesses • Tagline “Just Do It” reverberates with athletes and competitors (SOG) • High differentiation in products allows Nike to reach a wide variety of consumers and “athletes” (Strategy) • Global positioning makes manufacturing and delivery fast and efficient (Strategy) • Nike’s financial resources, global supply chain, and established vendor relations make the firm incredibly efficient (VRIO) • High global brand recognition (VRIO) • Extensive R&D program allows Nike to stay at the forefront of their industry, consistently releasing innovative and technologically advanced products (VRIO) • Strong, cult-like company culture (OCA) • Nike gives employees the flexibility to innovate, within specific guidelines (OSA) • SOG & Position fit: reaching every athlete everywhere made possible through broad differentiation (5S) • Skills & Position fit: excellent core and end products teamed with a top notch distribution and manufacturing network leads to satisfying company goals of innovation and product excellence (5S) • Nike is in excellent financial positioning, efficiently using assets and capital to produce industry-leading returns to investors (5S) • Nike VMPGs too geared toward athlete and less toward average consumer (SOG) • Very broad mission statement (SOG) • Still several CSR complaints keeping Nike from being inspirational (SOG) • High product prices can lead to consumers switching brand allegiance (Strategy) • Continued allegations of abuse and mistreatment of employees at manufacturing facilities (VRIO) • Income heavily dependent on Nike’s share of the footwear market (VRIO) • Sometimes bureaucratic decision-making (OCA) • Structure & SOGs: organizational structure features little representation from lower-level workers, blocking significant progress in CSR and manufacturing facility conditions (5S) • Style & SOGs: often bureaucratic decision-making means innovative ideas from front-line sales staff centered with extensive consumer preference knowledge may not be reaching key decision makers in the company (5S) Opportunities SO Strategies WO Strategies • Footwear industry up 25.94% from YAGO (5F) • Athletic footwear sales have grown 8.6% annually, on average, for the last three years (5F) • High psychological/brand differentiation (5F) • Nike’s younger market dominates premium shoe sales worldwide (5F) • Low exit barriers because of subcontracted manufacturing (5F) • Large manufacturing and distribution economies of scale (5F) • Subcontracted manufacturing gives Nike great flexibility in meeting higher demand (5F) • Thousands of patents on fabrics and designs (5F) • Low buyer price sensitivity (5F) • Nike’s average shoe price of $70-75 is double the average price of tennis shoes ($39.97 in 2013) (5F) • Average consumer, especially athletic participants, are more fashion- oriented than ever (5F) • Emerging markets (Brazil, Mexico, Argentina, etc.) up 30% in footwear sales (MEA) • Household median income is on the rise (MEA) Nike Showcase • Strengths: Extensive R&D program allows Nike to stay at the forefront of their industry, consistently releasing innovative and technologically advanced products (VRIO) • High global brand recognition (VRIO) • Opportunities: Emerging markets (Brazil, Mexico, Argentina, etc.) up 30% in footwear sales (MEA) • Average consumer, especially athletic participants, are more fashion-oriented than ever (5F) Nike Parks • Weaknesses: Still several CSR complaints keeping Nike from being inspirational (SOG) • Opportunities: Nike’s younger market dominates premium shoe sales worldwide (5F) Threats ST Strategies WT Strategies • Four firm strategic group featuring oligopoly; price-war in marketing and advertising (5F) • Under Armour’s market share growth is higher than all industry firms, including Nike (5F) • Low functional product differentiation (5F) • Constantly decreasing switching costs due to online distribution and increasing product knowledge (5F) • High emotional commitment to legacy due to senior executives and Bowerman’s powerful past (5F) • High threat of retaliation for athlete marketing contracts (5F) • Substitution possible in high-performance niches (running, hiking, etc.) (5F) • Increasing digital content and high-performance video game consoles could take away from physical activity, creating less demand for athletic apparel (MEA) • Under Armour making the move to a more international company model (MEA) • International design patent prices have been increasing in recent years (MEA) • Aging population doesn’t cater to Nike’s hold on youth market (MEA) • Baby boomers moving spending habits from clothing and entertainment to healthcare as they age (MEA) NBA Penetration • Strengths: Tagline “Just Do It” reverberates with athletes and competitors (SOG) • Reaching every athlete everywhere made possible through broad differentiation (5S) • Threats: Under Armour’s market share growth is higher than all industry firms, including Nike (5F) • Four firm strategic group featuring oligopoly; price- war in marketing and advertising (5F) Redefining The Athlete • Weaknesses: Nike VMPGs too geared toward athlete and less toward average consumer (SOG) • Threats: Aging population doesn’t cater to Nike’s hold on youth market (MEA) • Baby boomers moving spending habits from clothing and entertainment to healthcare as they age (MEA)
  • 14. NIKE INC: KEY DRAFT “STATS” • HQ In Beaverton, Oregon • Brand alone valued at $19 billion in 2014 • Employs over 56,500 people worldwide • Market cap of $86.5 billion • Over $30 billion in revenue in 2014 • Contracts with athletes such as Lebron James, Tiger Woods, Michael Jordan, Kevin Durant, and Andrew McCutchen • “Just Do It” and Nike Swoosh – two of the most recognizable images in sports STRATEGIC PLANNING STRATEGIC THINKING STRATEGY MAKING
  • 15. CHAMPION RECCOMENDATION 1: NBA PENETRATION • NBA Penetration • NBA Jersey contract • NBA arena store entry to possibly replace Adidas STRATEGIC PLANNING STRATEGIC THINKING STRATEGY MAKING
  • 16. STRATEGIC RECOMMENDATIONS: TOWS MATRIX Strengths Weaknesses • Income heavily dependent on Nike’s share of the footwear market (VRIO) Threats • Four firm strategic group featuring oligopoly; price-war in marketing and advertising (5F) • Under Armour’s market share growth is higher than all industry firms, including Nike (5F) NBA Penetration • Weaknesses: Income heavily dependent on Nike’s share of the footwear market (VRIO) • Threats: Under Armour’s market share growth is higher than all industry firms, including Nike (5F) • Four firm strategic group featuring oligopoly; price-war in marketing and advertising (5F)
  • 17. CHAMPION RECCOMENDATION 2: NIKE PARKS/YOUTH MOVEMENT • “Just Do It” – Youth Movement • Nike Parks • Field Day – hosted either at parks or schools • Health/physical activity awareness and promotion STRATEGIC PLANNING STRATEGIC THINKING STRATEGY MAKING
  • 18. STRATEGIC RECOMMENDATIONS: TOWS MATRIX Strengths Weaknesses • Still several CSR complaints keeping Nike from being inspirational (SOG) Opportunities WO Strategies • Nike’s younger market dominates premium shoe sales worldwide (5F) Nike Parks • Weaknesses: Still several CSR complaints keeping Nike from being inspirational (SOG) • Opportunities: Nike’s younger market dominates premium shoe sales worldwide (5F) Threats
  • 19. CHAMPION RECCOMENDATIONS 3: REDEFINING THE ATHLETE • “Redefining an Athlete” • Ad campaign targeted at less athletic and/or middle aged adults • Custom sole construction at Nike stores to tailor to unique athletic needs or requests STRATEGIC PLANNING STRATEGIC THINKING STRATEGY MAKING
  • 20. STRATEGIC RECOMMENDATIONS: TOWS MATRIX Strengths Weaknesses • Nike VMPGs too geared toward athlete and less toward average consumer (SOG) Threats WT Strategies • Aging population doesn’t cater to Nike’s hold on youth market (MEA) • Baby boomers moving spending habits from clothing and entertainment to healthcare as they age (MEA) Redefining The Athlete • Weaknesses: Nike VMPGs too geared toward athlete and less toward average consumer (SOG) • Threats: Aging population doesn’t cater to Nike’s hold on youth market (MEA) • Baby boomers moving spending habits from clothing and entertainment to healthcare as they age (MEA)
  • 21. CHAMPION RECOMMENDATION 4: NIKE SHOWCASE STRATEGIC PLANNING STRATEGIC THINKING STRATEGY MAKING
  • 22. CHAMPION RECOMMENDATION 4: NIKE SHOWCASE • Nike’s top endorsees will participate in a fan-oriented showcase to highlight Nike’s current partnerships and new products • Two separate events, one held in United states, highlighting Nike’s NBA endorsees, and another held in Brazil, highlighting Nike’s soccer endorsements • Generate PR campaign by donating a portion of revenue to help fight child labor laws and sweatshops • Give customers/ fans a chance to see Nike’s new products in an action packed fashion show environment STRATEGIC PLANNING STRATEGIC THINKING STRATEGY MAKING
  • 23. STRATEGIC RECOMMENDATIONS: TOWS MATRIX Strengths Weaknesses • High global brand recognition (VRIO) • Extensive R&D program allows Nike to stay at the forefront of their industry, consistently releasing innovative and technologically advanced products (VRIO Opportunities • Average consumer, especially athletic participants, are more fashion-oriented than ever (5F) • Emerging markets (Brazil, Mexico, Argentina, etc.) up 30% in footwear sales (MEA) Nike Showcase • Strengths: Extensive R&D program allows Nike to stay at the forefront of their industry, consistently releasing innovative and technologically advanced products (VRIO) • High global brand recognition (VRIO) • Opportunities: Average consumer, especially athletic participants, are more fashion-oriented than ever (5F) • Emerging markets (Brazil, Mexico, Argentina, etc.) up 30% in footwear sales (MEA) Threats
  • 25. STRATEGY: A SEMESTER’S LEARNINGS Strategy isn’t everything. . . Leadership is a potent combination of strategy and character. But if you must be without one, be without the strategy. – Norman Schwarzkopf But its probably behind most successful ventures. . . All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved – Sun Tzu But lets not forget the end goal. . . A satisfied customer is the best business strategy of all – Michael LeBoeuf
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