2. ABOUT NIKE
TYPE: PUBLIC
INDUSTRY: MANUFACTURING AND DESIGNING SPORTSWEAR AND SPORTS EQUIPMENTS
FOUNDED: JANUARY 1964 AS BLUE RIBBON SPORTS, CAME TO BE KNOWN AS NIKE, INC. IN
1978
FOUNDERS: WILLIAM J. “BILL” BOWERMAN AND PHILIP H. KNIGHT
HEADQUARTERS: WASHINGTON COUNTY, OREGON,UNITED STATES (NEAR BEAVERTON,
OREGON)
KEY PEOPLE: PHILIP H. KNIGHT (CHAIRMAN) AND MARK PARKER ( C.E.O. AND PRESIDENT)
PRODUCTS: ATHLETIC SHOES, APPARELS, SPORTS EQUIPMENT AND ACCESSORIES
REVENUE: US$ 19.2 BILLION
TOTAL ASSETS: US$13.2 BILLION
TOTAL EQUITY: US$ 8.69 BILLION
EMPLOYEE STRENGTH: 34400 (‘2010)
5. They design, develop, and market high quality active sports
apparel, equipment, and accessory products
Nike distributes one new shoe style every single day
Nike’s critical factors for success are maintaining current
standards, closer working relationships, and retaining
customer loyalty by guaranteed standard of product
Their products are made for men, women, and children of all
ages.
The company presently sells roughly 300 models of athletic
shoes in 900 styles for 25 different sports.
Nike's target market for their shoes is males and females
between 18 and 35 years old.
NIKE PRODUCTS AND TARGETTED CUSTOMERS
6. NIKE IS FACING HYPERCOMPETITION FROM
QUITE A FEW FIRMS BOTH DOMESTICALLY AND
GLOBALLY.
THE MAIN FIRMS ARE REEBOK, ADIDAS, FILA,
PUMA, TAYLOR MADE, CONVERSE, NEW
BALANCE, ETC.
IN THE DOMESTIC MARKET (i.e. U.S.) NIKE IS THE
INDUSTRY LEADER WITH 47% MARKET SHARE,
FOLLOWED BY REEBOK, A DISTANT 2ND WITH 16%
AND ADIDAS WITH 6%.
NIKE IS THE LARGEST SELLER OF ATHLETIC
FOOTWEAR AND APPAREL WORLDWIDE BY
SALES.
8. CORPORATE SOCIAL RESPONSIBILITY
MANY OF NIKE’S MANUFACTURING PROCESSES NEGATIVELY CONTRIBUTE TO THE
ENVIRONMENT.
ITS EXPANDING INDUSTRY IS LEADING TO ACUTE WATER DEFICIT,CLIMATE
CHANGE, POLLUTION, EXCESSIVE FUEL AND RAW MATERIALS CONSUMPTION.
NIKE IS TRYING HARD TO COUNTERACT THESE DIFFICULTIES.
CURRENTLY NIKE IS AMONG THE TP 3 CLIMATE-FRIENDLY COMPANIES.
NIKE STARTED THE NIKE GRIND PROGRAM WHICH CLOSES THE PRODUCT LIFE-
CYCLE.
NIKE ALSO STARTED RE-USE-A-SHOE PROGRAM IN 1993 FOR RECYLCLING AND
REUSING USED SHOES.
THE MATERIAL THAT IS CREATED FROM RECYCLED SHOESS IS OFTEN USED TO
CREATE SPORTS SURFACES LIKE BASKETBALL COURTS, RUNNING TRACKS,
PLAYGROUNDS, ETC.