This document summarizes a presentation on Nike. It outlines Nike's vision, mission, goals and objectives. It then performs a five forces analysis on Nike using Porter's model. It identifies that Nike falls within the footwear industry and comments on the overall attractiveness and performance of that industry. Finally, it analyzes Nike's main competitors and identifies strategies adopted by Nike such as market development, market penetration and product development.
2. Q1. Identify the Vision, Mission, Goals and objectives of Nike.
Comment upon them. Using your knowledge of the subject,
frame vision, mission, goals and objectives of the organization.
• Vision of Nike – “To bring inspiration and innovation to every athlete in the
world.” (2016)
• Mission of Nike – Nike’s mission statement is "To bring inspiration and innovation
to every athlete in the world."
• Goal of Nike – Nike is believing in the partnerships formed valuing the
opportunity to work together with all stakeholders in the apparel industry and to
share best practices.
• Objectives of Nike – Nike’s first objective is to make a profit for the shareholders.
In order to meet objectives, Nike makes a number of small aims and objectives.
3. Q2. Do five force analysis in detail for the Nike in the light of
Porter’s model shaping industry competition?
• Competitive Rivalry or Competition with Nike Inc. (Strong Force)
• Bargaining Power of Nike’s Customers/Buyers (Moderate Force)
• Bargaining Power of Nike’s Suppliers (Weak Force)
• Threat of Substitutes or Substitution (Moderate Force)
• Threat of New Entrants or New Entry (Weak Force)
4. Q3. Identify the category of industry in which Nike falls in?
• Nike Falls ins Footwear industry.
• Nike’s forecast by year 2020 global market share is to be around
27.2%
• in 2015, Nike's global revenue amounted to about 30.6 billion U.S.
dollars.
5. Q4. Comment upon footwear industry’s overall attractiveness
• Expected market boost at 2.8% between 2015 - 2023.
• The increasing production of counterfeit footwear products by local
manufacturers also manages to effect the footwear industry.
• Bolstering opportunities for footwear sales for both children and
women.
6. Q5. Comment on overall performance of Industry in which Nike
operates?
• The Footwear industry is presently in the transition period. But in
such situation too many companies have still managed to survive with
slow paced but growing sales.
• The capital intensity varies depending on the type of footwear that is
manufactured. Low, Mid and High finishing shoes.
7. Q6. Competitors approach analysis for Nike?
• Nike's biggest competitors are Adidas and Under Armour.
Other competitors include Puma, Skechers, Asics.
• Adidas' marketing strategy - Diverse brand portfolio.
Creating an adaptable and efficient supply chain.
Constantly offering cutting-edge products and innovative solutions.
Remaining a sustainable company.
8. Competitors Approach (Continued . . .)
• Under Armour’s marketing strategy –
Intense branding and marketing to capture the golf players market
(which Nike failed to capture).
• Making tie-ups with top Television personalities and showcasing their
life growth.