2. Company Profile
American multinational manufacturing Co.
Core products include footwear & apparel
Unwavering commitment to advertising
Key Marketing Initiative
Use of high profile athletic endorsements
Nike’s brand portfolio
Nike, Cole Haan, Converse, Hurley, Nike Golf
and Umbro.
75% of the growth is expected from the Nike
brand.
3. History
Nike, originally known as Blue Ribbon Sports (BRS),
was founded by University of Oregon track athlete
Philip Knight and his coach Bill Bowerman in January
1964
In 1966, BRS opened its first retail store, located at
3107 Pico Boulevard in Santa Monica, California. By
1971, the relationship between BRS and Onitsuka
Tiger was nearing an end. BRS prepared to launch its
own line of footwear, which would bear
the Swoosh newly designed by Carolyn Davidson
Throughout the 1980s, Nike expanded its product line
to encompass many sports and regions throughout
the world
5. Vision Statement
To carry legacy of innovative thinking,
whether to develop products that help athletes
of every level of ability reach their potential, or
to create business opportunities that set Nike
apart from the competition and provide value for
our shareholders.
Mission Statement
To bring inspiration and innovation to every
athlete in the world.
6. Products
Nike Air Max
Nike 6.0
Nike NYX
Nike SB
Air Zoom Yorker
Air Jordan XX3
SPARQ Training
Program
Nike+
7. 5 force model Threat of new competition
Threat of substitute products
or services
Bargaining power of
customers
Bargaining power of suppliers
Intensity of competitive rivalry
8. Threat of new entrants (low)
Capital Intensive
Strong Brand Following
Economies of scale
High R & D Costs
Industry in consolidation phase
10. Supplier Power (low)
Raw Materials are abundantly available
Cheap resources, commodity items
11. Buyer Power (high)
Everything depends on Customer Preferences
Price sensitivity issues
Brand following
Retail and vendor consolidations
Growing power of retail chains e.g.Walmart
12. Internal Rivalry (high)
Fierce Competition- Adidas, Reebok, New Balance
Mature Industry
Mostly Non-Price competition
Differentiation strategy
Industry in Consolidation phase
13. Competitors
o Adidas
o Reebok
o Puma
o New Balance
o ASICS
o Converse
o K-Swiss
o Sketchers
o Others
14. SWOT analysis
Strengths
• Brand image
• Market leader in most of the world
• Diverse product portfolio
• Strong advertising
• Experienced Management team
Weakness
• Under constant scanner of Human rights companies due to its history of unethical
labor practices
• Premium player in price sensitive sector
Opportunity
• Emerging markets
• Can be a leader in developing environmentally sustainable business
Threats
• Mature industry susceptible to recessions
• Dependence on contracted suppliers – compliance issues
• Ever Changing customer preferences
• Dependence on endorse athletes
• Seasonal business
15. AD Strategies
• Endorsing Athletes
• Sponsoring Sports events
• City based advertisements
• Banners & Billboards
• Themes on bringing inspiration and innovation to
every athlete in world
16. Branding message and strategy
• Athletic, Influential, Outgoing,
Aggressive, hi tech, futuristic, retro cool
• American way of living
• Associated with Athletes at top of their
sport
• To bring inspiration and innovation to
every athlete in world
17. Technology &
Innovation
Strategies
Nike fields some of the
best in class
technological practices
and has a few patents to
its credit. Nike
emphasizes on these
and has developed a
lot of new products with
use of high technology
and sophistication
18. Manufacturing Strategies
• Endorsing Athletes
• Sponsoring Sports events
• City based advertisements
• Banners & Billboards
• Themes on bringing inspiration and innovation to
every athlete in world
19. NIKEy Success Factors
• Marketing Activities
• Extensive Research & Development
• Production and Manufacturing Facilities
• Extensive Distribution Facilities
• Wide Range of Relative Products
• Capable Workforce
• Innovative Activities
20. Conclusion
Wal-Mart must adopt a friendlier corporate attitude
It needs to relax anti-unionization policy
Improve public perception that Wal-Mart can destroy
communities
International expansion should be done with the
help of Local retailers