• Nike was founded by Bill Bowerman and Phil Knight
• With a $500 investment by both men, Blue Ribbon Sports(BRS) was born in 1964.
• By 2006, that company, called Nike for the Greek goddess of victory, had grown into the
one of the world's most well-known brands.
• Nike's fiscal year 2006 sales reached $15 billion(up 9% percent from FY 2005),with net
income of $1.4 billion(compared to $1.2 billion the previous year)
2002 2003 2004 2005 2006
Nike Financial History (In millions)
Sales Revenues Net Income
• With the main primary focus on footwear, apparel and equipment, Nike organized its
business around a ‘Product Orientation’.
• The business units represented the lead dimension of the matrixed structure with few
global functions- sales, brand, customer service etc.
• United States, Europe, Middle East, and Africa, Asia-Pacific, and the Americas--
represented the second dimension.
Regional Percent of Nike in fiscal 2006
EMEA—Europe, Middle East, and Africa
• After much debate among the senior management, Nike created its women’s footwear
division in 2001.
• The team in charge was made up of handful of executives from different parts of the
• The project was not given top priority and was considered as their second job with them
having to manage different tasks at the same time.
• The whole operation was divided into phases depending on the action taken.
Evaluation of successes and challenges so far.
Getting an external take on the present state.
Analysis of the consumer.
Lot of ground work was done on the women market but no monumental steps were
taken so far.
Critical decisions were taken in the form of six milestones.
Month 2: Seasonal kick-off and Creative Direction.
Month 9: Design Review.
Month 10: Prototype Review
Month 12: Go to the Market Strategy.
Month 13: Realign.
Month 15: Brand Execution and post-season review.
Refocus on how much money was needed and about reorganization.
Making It Happen
Winslow began building her dream team:
Needed people who had influence in the organization.
Proper reputation and authority.
Passion for the Women’s business
Many promotions were made within the company like the
road show which kept the spirits of the staff high and
earned a positive response.
Change In Strategy
• Though there was a solid organizational structure, change in trends and competition in
the niche market brought about the change in strategy.
Product to Category Focus
• Product Focused organization is one that has a roadmap and even vision for the product
based on delivering something that the team believes will meet market demand –
whatever the market maybe
• Customer Focused organization is one where decisions about the product are made
based on aligning customer needs and wants with the overall goals of the organization.
Problems Faced By Nike
• Change in Game was a good move, with Mindy Grossman in charge but the execution
phase was sketchy.
• Strain on the employees as they were associated to different other tasks along with the
• Though there is a shift in the approach, it is still composed of the same skeletal structure
thus resulting in misalignment of priorities between global and regional teams.
• The women’s business team had no proper structure within itself and the key members
only were assessed. This is a major flaw as the other employees will lack the drive to
achieve anything substantial.
• The change was extremely slow from the beginning.
• The belief that success of the women’s line of products
will put the men’s business in the back page is very wrongly
assessed and resulted in the late start.
• The experienced executives in the company might stop
any radical changes as they were used to working in a certain
way from the start.
• These were some of the issues Nike faced and resulted in
the late launch of the Women’s products.
• Proper incentives should be provided to the women’s team in appreciation of the extra
effort they are putting for taking up the business up a notch.
• Motivation of the employees regularly by the top executives will keep up the spirit going.
• Adopting activities like the road shows to obtain collaboration from departments.
• Defining proper roles and responsibilities.
• The company should make sure that along with its perception and commitment, it
should also think one step ahead of the first delivery due to the fast pace of the retail.
Hybrid organization by readjusting all the elements and the company would have
autonomous divisions with regional offices.
Divisions would have their own product design.
Internal departments like sales, operations, logistics, supply chain and customer
service, their own strategic planning.
This will provide them with less complexity and more alignment in their structure
thus leading to uniformity.
1. Roles and responsibilities are clearly defined. 1. Reorganization can be a costly affair and can
take some getting used to time.
2. Enhanced customer entrepreneurship. 2. Long-term customers can become confused.
3. Increased standardization. 3. Unknown territory for leaders who have vast
experience and gotten used to one way of
4. Increased customer touch points. 4. Workforce can face problems like dealing with
all the changes and might feel like they are
working for different companies.
Basic idea of autonomous division will remain the same with powers like
But they would be informally supported by the Corporate Offices. Organization
will be centralized at the corporate level and also have functional capabilities
along with regional offices.
1. Requires little additional investment. 1. Harder to distinguish exploration from
2. No emotional impact for employees. 2. Reduced corporate entrepreneurship spirit.
3. Senior management will remain in the comfort
3. Reduced ability to standardize exploitation.
4. Faster implementation.
5. No creation of confusion to the customer and
addresses all the arising challenges.
• Since the trend of the women’s market keeps changing, Nike should make sure that with
the reorganization of its structure it keeps with the ever increasing demand especially as
it turned out to be a huge hit in all the parts.
• It should refine its marketing strategies on a frequent basis and keep up with its
• The top tier executives should take a personal approach with the employees.
• Incentives should be awarded to the ever working hard team.
• They should concentrate on prioritizing its most successful department and market and
make sure that the sales are properly delivered on time.
• Also every store can be personalized depending on the popularity of the sport in
the particular region.
• More importantly, with the increase in the online customers every available
product should be put up on the website with the facility of customizing it for an
• The stores can also be reflect the taste of the customer in the particular area with
priority of customer service as women prefer stores with the best service and
• Nike’s Revolutionary Support Sports Bra, The Considered 2K5
shoe and Nike+ Air Zoom Moiré, were recognized by I.D.
magazine in its Best of Consumer Product Category.
• #55 on Business Week’s Top 100 Places to Launch A Career list
• Recognized in 2006, 2007 as well as 2008 on Fortune magazine’s
100 Best Companies To Work For list because of Nike’s employee
Aftermath and Nike Today
• Acquired the sports apparel supplier Umbro
• Ranked as being the Most Admired Company in America
in the Apparel industry
• Runner-up to Apple in Innovation
• Topped the industry in long-term investment, financial
soundness and social responsibility
• Two popular products: Nike Air Hyperdunk and Nike
Zoom Kobe IV
• Released the Nike+ Sports Band in stores
• Earned silver in the CLIO Awards for Nike+.
• First on the Dutch Top 100 Best Brand Awareness list
• Second in the European Football Sponsor Brands Top 20
• Ranked number 1 for the ‚green score‛ and number 2 for the
‚reputation score‛ based on Newsweek’s Green Rankings
• Named as one of the World’s Most Ethical Companies by the
• Ended being the official kit sponsor for the Indian cricket team
• Nike Pro Combat jersey collection was worn by teams from
• Nike stated that 2/3 of its factories in Indonesia
producing Converse products did not meet the
company’s standards for the treatment of their workers
• Named one of the best American companies for gay,
lesbian, bisexual, and transgender workers
• Ranked tenth on the Corporate Responsibility
Magazine’s 100 Best Corporate Citizens List
• Announced its intention of selling Cole Haan and Umbro
• Earned the number 1 spot in the Climate Counts
performance rankings in the Apparel/Accessories sector
• Cleverly leveraged their recognizable logo and received
brand identification at the 2012 Olympic Games
• CEO Mark Parker announced the removal of Joe
Paterno’s name from the child development center
• Joined the (RED) campaign to prevent the transmission
of the HIV virus from mother to child
• Officially became the sponsor of the NFL
• Corporate mission states ‚to bring inspiration and innovation
to every athlete in the world‛
• Announced that an increase of its fiscal 2015 revenue target
will be increased from $27 billion which was announced in
May 2012 to $28-$30 billion
• Will buy back another $5 billion by the end of second quarter
fiscal 2013 and set up a 4 year plan to buy back $8 billion
and strong growth in China
• Continue being one of the largest and most successful
Plans for the Future