Strategic Analysis Prepared By Rati Kiria & Natia Tsutskiridze
ContentsSales and Income Trends Company AnalysisEnvironmental Analysis
Nike Inc. was founded in 1962by Bill Bowerman and PhilKnight as a partnership underthe name, Blue Ribbon Sports.Their modest goal then was todistribute low-cost, high-quality Japanese athleticshoes to American consumersin an attempt to breakGermanys domination of thedomestic industry.
Revenues in the fiscal year ended May 31, 1999, declined by 8% over the prioryear to $8.777 billion. As illustrated in the graph below, this marked the firsttime since 1994 that revenues have declined. Regardless of this yearsdecline, Nike Inc. achieved 300% revenue growth over a 10-year period, risingfrom 1990 sales of $2.235 billion.
Their primary product focus is athleticfootwear designed for specific-sportand/or leisure use(s). They also sellathletic apparel carrying the same In addition, we utilize thetrademarks and brand names as many following wholly-ownedof our footwear lines. Among their subsidiaries to sell additionalnewer product offerings, they sell a line sports-related merchandise andof performance equipment under the raw materials: Cole Haan HoldingsNike brand name that includes sport Inc., Nike Team Sports, Inc., Nikeballs, timepieces, eyewear, skates, bats, IHM, Inc., and Bauer Nike Hockey and other equipment designed for Inc. Our most popular productsports activities. categories include the following:
Company Analysis Board of Directors - Strength Board of Directors - WeaknessNike’s board of directors consists of both The average age of Nike’s board is 62, themanagement directors and independent youngest member being 49 and oldest beingdirectors. The combination of these two types 79. This constitutes a possible weakness inof directors benefits Nike in that there is a that there is a lack of younger members ofpresence of those directly involved with Nike the board who could serve to bring a newas well as others indirectly involved who bring perspective to the company and assist inoutside experience, provide another frame of achieving Nike’s goals.reference and can assist the overall board inthinking "outside the box."
Internal – Strength External - WeaknessNike’s management Nike’s failure to foreseeanalyzes its internal problems in relation toenvironment and labor and factorymakes decisions conditions at productionbased on that locations has resulted inanalysis. Because of bad publicity andNike’s marketing declining sales as societyresearch, the and consumers call forcompany has decided more "sociallyto revamp its apparel responsible" companies.division to be morefashion savvy.