Stock symbol : NKE (NYSE) Annual revenue : more than $19billion ( as of 2010) Founders : Bill Bowerman & Philip Knight Year established : 1964 (as Blue Ribbon Sports) Industry : Sportswear/equipment HQ : Beaverton, Oregon , USA President/CEO : Mark Parker Staff : 34,400 (as of 2010) Products : Shoes, apparel and sports equipment Slogan : Just Do It!
Nike NikeLogo as Logo asat 1971 at 1985 Nike Current Logo as Nike at 1978 Logo
Philip Knight Co founder/ Chairman Mark Parker CEO/PresidentAlan Graf Jr. Timothy Cook John Connors Fedex Apple Inc Ignition Partners
Cole Haan, designs and distributes dress and casual footwear, apparel, and accessories for men and women Converse Inc., offers a diverse portfolio including premium lifestyle mens and womens footwear and apparel. Hurley International LLC., designs and distributes a line of action sports apparel for surfing, skateboarding and snowboarding, and youth lifestyle apparel and footwear NIKE Golf, designs and markets golf equipment, apparel, balls, footwear, bags and accessories worldwide. Umbro.Ltd., designs, distributes, and licenses athletic and casual footwear, apparel and equipment, primarily for the sport of football (soccer)
Strength Weakness Opportunities Threat• Nike Inc is listed in • The income of the • The opportunity to • Financial crisis may NYSE business is still heavily develop products such as lead to job shortages • Strong marketing dependent upon its sport wear, sunglasses in a number of strategy share of the footwear and jewelry Nike’s worldwide• Operates a chain of market. • Producing sportswear subsidiaries Niketown retails • Contracts overseas products from companies that apply manufacturing waste • Nike is exposed to • Has factories in the international China, Vietnam, non-transparent and • Nike is a fashion brand. inadequate labor Consumers that wear nature of trade. Malaysia • The market for sports regulations, involving Nike product do not• Contracts with 700 child labor shoes and garments always buy it to shops worldwide is very competitive participate in sport
Product Strategy Pricing Strategy- Several lines of athletic shoes and apparel - Uses market skimming pricing strategy- Product mix width consist of athletic - Product line pricingshoes , apparel and sports equipment 4P’s Promotion Strategy Place Strategy- Direct marketing (through e-shop) - Sells product in international market through independent distributors, licenses,- Public relations (massive sponsorship) subsidiaries- Mass Advertising - Sells product in approximately 110 countries around the world
Threat of New Entry (Moderate) Threat ofRivalry Substitutes(High) (Moderate) Bargaining Bargaining Power of Power of Suppliers Buyer (Low) (High)
Nike has historically had some of the mostcutting-edge products on the market.For example, Nike teamed up with Apple andlaunched the “Nike + iPod” line of products.This technology allows consumers to connecttheir iPod devices to sensors inside the shoes torecord time, distance, pace, and calories burned.
Due to cheap labor in foreign countries, Nike outsources virtuallyall production to other areas of the world.This behavior has become an industry standard, with all majorcompetitors also outsourcing production.Consequently, no competitor has a major advantage inmanufacturing
One of Nike’s most revolutionary technologies comes through itsfootwear cushioning.Nike has patents on four cushioning technologies:Nike Air / Nike Zoom / Nike Air Max / Nike ShoxAlthough some of Nike’s earlier patents are beginning to expire, they stillhold patents on the newer technologies
Nike is the single largest producer of athletic footwear and apparel,allowing them large cost advantages over competitionLarger companies tend to have major economies of scale over smallercompanies in areas such as distribution and marketing.Nike is so large that many of the company’s suppliers depend on Nike toremain in business.
Source : Nike Annual Report (2011)
- Contributes for the study of rural children- Innovates its product constantly to make it eco-friendly- Offers scholarship to children in sports- Member of Fair Labour Association (FLA) & Global Alliance- Funds number of NGO’s as part of contribution towards society
Formulating a strategic plan for the corporation’s future is key indetermining the all around goals of the company.Nike, with their marketing, innovation, technologicaladvancements, and equitable manufacturing departments, hascreated an all round dominant strategic plan.Nike has raised their competitive advantage to the highest formpossible.