This document provides an overview and analysis of Nike, including its mission statement, product line, history with Michael Jordan, situation analysis using SWOT and Porter's Five Forces, and recommendations for entering new markets. Key points include Nike's mission to inspire all athletes, its iconic partnership with Michael Jordan that helped launch the Air Jordan brand, and a suggestion to enter the markets of Pakistan and Afghanistan due to their large populations that are interested in sports. A detailed analysis of Nike's competitors, suppliers, public perceptions, and the political, economic, social, technological and environmental factors impacting its industry is also presented.
A case study focusing on world’s two biggest names in the sports brands today - Nike and Adidas. Gives a good viewpoint to the marketing strategy of both.
Strategic Analysis of Nike, Under Armour & IMGTiantong Liu
Strategic Analysis of Nike, Under Armour & IMG
Content include:
Mission & Vision of each organization
PESTEL Analysis
Five Forces Model Analysis
Suggestions
Strength & Weakness
Strategic Implementation
My team and I did an in-depth overview of Nike's competitive position in the sports apparel and footwear industry as well as suggested strategies to help improve their performance.
A case study focusing on world’s two biggest names in the sports brands today - Nike and Adidas. Gives a good viewpoint to the marketing strategy of both.
Strategic Analysis of Nike, Under Armour & IMGTiantong Liu
Strategic Analysis of Nike, Under Armour & IMG
Content include:
Mission & Vision of each organization
PESTEL Analysis
Five Forces Model Analysis
Suggestions
Strength & Weakness
Strategic Implementation
My team and I did an in-depth overview of Nike's competitive position in the sports apparel and footwear industry as well as suggested strategies to help improve their performance.
How have Nike used innovation in both their products and their use of endorse...William Risso-Gill
As part of my International Management degree I have written a report on Nike's use of innovation in their product design and use of endorsements. This report was written for my 'Innovation in Product Markets' module at the University of Manchester.
How have Nike used innovation in both their products and their use of endorse...William Risso-Gill
As part of my International Management degree I have written a report on Nike's use of innovation in their product design and use of endorsements. This report was written for my 'Innovation in Product Markets' module at the University of Manchester.
Our team conducted research and analysis to calculate the intrinsic enterprise value of Nike, Inc. This was done using a variety of methods, including: dividend discount model, discounted cash flow model, industry comparables, and basic economic research.
Shoes On Nike
1
Executive Summary:
Situational analysis
▪ Background data on sales & costs.……………………………………………....Pg. 2
▪ Competitors………………………………………………………………………....Pg. 4
▪ Customers…………………………………………………………………………..Pg. 5
▪ Company …………………………………………………………………………...Pg. 6
▪ Community …………………………………………………………………………Pg. 8
Marketing strategy
▪ Mission ……………………………………………………………………………..Pg. 9
▪ Marketing and financial objectives ……………………………………………...Pg.10
▪ Target Market & Positioning ……………………………………………………..Pg.10
Marketing tactics
▪ Product Offering…………………………………………………………………..Pg. 11
▪ Distribution………………………………………………………………………...Pg. 13
▪ Promotion………………………………………………………………………….Pg. 15
▪ Pricing ……………………………………………………………………………..Pg. 17
Financial projections
▪ Break Even Analysis ……………………………………………………………..Pg. 18
▪ Cost Forecast……………………………………………………………………...Pg. 18
▪ Sales Forecast………………………………………………………………….....Pg. 18
References
▪ References………… ……………………………………………………………..Pg. 20
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Part 1: Situational Analysis
1.1 Background data on
sales and cost
Nike was founded in the
State of Oregon in January
1996, by a track athlete, Phil
Knight and his coach, Bill
Bowerman (Nike 2017 10-K
Form, 2017).
Being the leader in the
athletic industry, Nike is the world’s largest supplier of athletic wear. Nike’s products are
divided into footwear, clothing, and training accessories. There are eight main
categories of Nike’s brand products. They are: running, soccer, basketball, action
sports, sports-inspired lifestyle products, golf, men’s and women’s training (Nike 2017
10-K Form, 2017).
Comparing Nike’s and
Adidas’ market capitalization
provides evidence of how Nike
grew as a company in athletic
wear during the past 17 years.
In 2001, both Nike and Adidas
started with a market
capitalization of close to 4
3
billion. In 2005, Nike, Inc. gained its lead in the industry, with its market capitalization
grew at a faster rate than Adidas. By 2010, Nike gained a market capitalization of 63.45
billion, and an annual revenue of 19 billion. In 2015, Nike’s market capitalization was
82.6 billion, while market capitalization of Adidas lagged behind at 17.1 billion (image
and text, Leach, 2015). During the 2017 fiscal year, the annual revenue for Nike, Inc. is
$34.4 billion, which rose 8% from the previous year on a currency-neutral basis (Nike
news, 2017).
Nike’s “swoosh” symbol was developed in 1971, and was registered with the
United States Patent and Trademark Office in 1974. Over the years, the Nike brand
became one of the strongest brand in the world. Currently, the Nike brand ranks as the
18th strongest in the world, estimated to be worth 27.0 billion dollars (Interbrand, 2017).
Along with its long-stand slogan “Just Do it,” the Nike brand became the face of the
company. Consumers associate the Nike brand with “superior quality, style, and
reliability” (De.
1Running head NIKE COMPANYPAGE 12NIKE COMPANYNIKE C.docxeugeniadean34240
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Running head: NIKE COMPANY
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NIKE COMPANY
NIKE COMPANY
Student name
Institution
Contents
3NIKE Company
31. Executive summary
42. Problem statement
43. Company profile
43.1Introduction
53.2 Mission statement
53.3 Values Statement
63.4 Vision Statement
63.5 Strategic Alternative Slogan
63.6 Industry Size
63.7 Industry Profitability
73.8 Industry Cyclicality
74. Industry Entry and Exit Barriers
74.1 Entry Barriers
84.2 Exit Barriers
84.3. Current strategy
115. Code of ethics
116. Facts and figures in governance, accountability and reporting
116.1 Reporting Practices
126.2 The Value of Reporting
126.3 Stakeholder Engagement and Report Reviews
146.4 Feedback on reporting
147. Company analysis
147.1The Strengths/ Weaknesses for Nike Corporate
147.2 Board of Directors - Strength
157.3 Board of Directors - Weakness
157.4 Environmental Analysis
15Internal – Strength and weakness
167.5 Challenges and struggles of Nike Company
198. Competition
198.1 Competition vs. Nike
198.2 Footwear Industry –Revenues, Players, Market Share
208.3 Manufacturing options
218.4 Strategic Outsourcing
218.5 The Evolution of Manufacturing in Third World Countries
228.5 Nike
238.6 Reebok
248.7 Adidas
248.8 Talk
258.9 New Balance
259. Summary and conclusion
27References
NIKE Company
1. Executive summary
When an organization such as Nike, opts to be a global entity, often, it experience a huge profits in its final accounting. Sadly, other businesses such as Nike must be at a position of overcoming some difficult obstacles set before it establishes a successful business in the foreign countries (Frisch, 2009). Most of the issues associated with these vast industries include the child labor laws, low wages, and the outsourcing’s effects on the aggregate sales. Due to this reason, the most widely known organizations have already presented several cases in defense to their positions on conducting business in the foreign countries. One such good instance is Nike’s sweatshop labor case that stirs up some controversy over the ethical business practices. Even after Nike Company has made several attempts at recovering from the bad press that it had received from the sweatshops, the organization still struggles to defeat the negative feelings that have already been created in the people’s mind, especially across the United States.
Additionally, this company faced various challenges from the word go. With the increase in technology, the organization is facing a very high competition caused by its reluctance to use of modern advertisement platforms as well as sticking to traditional marketing approaches (Frisch, 2009). The issue has resulted in reduced total sales as well as reportedly small profits. Thus, this paper seeks to present help Nick Co. Improves the already tarnished image in legal and ethical issues, as well as competitively survives in the market. 2. Problem statement
When Nike’s company op.
Nike Case Study (Building a Global Brand Image)Wajid Ali
This particular presentation is based on our research, findings and recommendations regarding building the global brand image for Nike.
Hopefully this will help all interested students.
An American multinational corporation, Nike, Inc. is one of the most leading brands which designs, develops and sells footwear, apparel, accessories, equipment and other services worldwide.
For more details:- https://myassignmenthelp.com/case-study/nike-swot-pest-analysis-case-study.html
The following report examines three key players in the U.S. athletic footwear market: Nike, adidas Group and VF Corporation. By analyzing the industry in terms of size and understanding meta trends, this report evaluates and projects how the future of the industry will grow.
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Table of Contents:
1. Nike……………………………………………………………………… 1
2. Table of Contents………………………………………………………. 2
3. Mission Statement……………………………………………………… 3
4. Introduction and overview……………………………………………. 4
5. Nike Product Line………………………………………………………. 5
6. Nike & Michael Jordan………………………………………………… 5
7. Situation Analysis………………………………………………………. 7
a. Micro Factors…………………………………………………… 7
b. SWOT Analysis…………………………………………………. 8
c. Macro Factors…………………………………………………… 8
d. Porter’s Five Factors…………………………………………… 10
8. Suggested Markets……………………………………………………… 11
a. Why these markets?.............................................................. 11
b. How could Nike enter into these markets?............................. 11
9. Marketing Mix………………………………………………………….. 11
a. Product …………………………………………………………. 11
b. Price …………………………………………………………….. 11
c. Place…………………………………………………………….. 12
d. Promotion………………………………………………………. 12
10. Advertisement………………………………………………………….. 13
11. Recommendations …………………………………………………….. 14
12. Conclusion……………………………………………………………… 15
13. References………………………………………………………………. 16
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Mission Statement
"To bring inspiration and innovation to every athlete* in the world."
The legendary University of Oregon track and field coach, and Nike co-founder, Bill Bowerman
said, "If you have a body, you are an athlete."
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"If you have a body, you are an athlete."
Co-founder Bill Bowerman, Nike
September 8, 1969, Nike athletic machine began as a small distribution company located in the
trunk of Phil Knight's car. Instead, inauspicious start, yielding Knight mind would come to
define many aspects of popular culture and the myriad varieties of the shoe and athletic company
that grew to become 'cool.'
Bill Bowerman their quest for lighter, more durable racing shoes for Oregon runners, and night
looking for a way to make a living without having to give up his love of athletics: The Nike
emanated from two sources. Bowerman and Phil Knight were a better quality running shoes
clearly University of Oregon track coach ran in 1959. Bowerman's desire for the night in their
search for a marketing strategy. Among them, the most influential sporting company grew
generation.
Overview:
Nike is the world's most famous and reliable sports and fitness company. Beaverton, Oregon
headquarters, Nike has expanded to almost every continent on the globe.
For the past 30 years, Nike science and athletic shoes, apparel and equipment technology
revolution. Air shows and lunar shoe technologies to maximise buffer, flexibility, and has been
engineered to provide players with stability. Nike apparel is made with special fabrics that
provide protection from the elements. These costumes help the body in its natural cooling in hot
weather and protect against loss of heat in cold weather. Nike also offers an impressive
collection of luggage and backpacks. Nike does not have a following of players catered for and
there is both a professional and amateur sport.
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Nike product line:
Nike itself has proved a famous brand and create a niche through its range of footwear, sports
goods and apparels. The main target is running, soccer, athletics, eyewear, combat sports like
lawn tennis, shoes for outdoor sports like golf and cycling online. Sinkers are also Nike product
line for leisure use.
Nike & Michael Jordan;
An ESPN documentary, "Sole Man," Nike, Sports Marketing and redefined the details of how to
sign Michael Jordan and Air Jordan put the company on a path to dominance by creating a line.
Nike Michael Jordan, the sale of the entire company before signing the $ 150 million. One year
after the start, the new Air Jordan line sales alone were over $ 100 million.
With the top score of Michael Jordan and Nike after the players who find it here, your company
can improve sales and marketing efforts and drive three practical ways.
Leverage Figures:
Michael Jordan not only faces the new Nike Air Jordan line but leveraged for marketing
throughout the company. He said the car was perfect promotional faith, Brittany former Nike
executive, who has Vaccaro, Jordan sign he was "in" on it and pay that penny they can. There
was a significant risk, to new heights association with Nike Jordan Co. sling.
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Luminaries for all industries and markets that may influence potential customers. Sometimes
they do not have to be celebrities but. A perfect luminary marquee client or it can be a powerful
governing body.
The offer:
"Air Jordan" was created for an NBA basketball player was the first signature shoe. Chicago
Bulls: They were the colours that had been black, Bill Jordan team. Shoes were able to quickly
identify and even a fashion statement.
Best for your products to the market, they should be different and unique. They should separate
themselves from other product offerings. For example, the prestigious Christian Louboutin shoes
always proud of their brilliant red soles. Similarly, filter out specific pictures on social networks
Instagram, they are usually applied. Well-marketing (design) products are able to incite easily
stand out from the crowd and demand.
Meaningful word of mouth:
Air Jordan was technically advanced basketball shoes, but it is worthless to users that they
looked cool. It created a buzz among potential customers. The "Sole Man," former NBA All-Star
Chris Webber first time he saw someone wearing Air Jordan said, "It was recessed 1986. I was
13 years old. This kid who used to just be fresher than everybody else...had on these red and
black Jordans. I just remember all us going 'oh,' just sitting looking at his Jordans."
It is easy to identify the product; it creates meaningful word of mouth marketing.
Nike is not only replicated the process with other players through the years to its competitors,
like Adidas and Under Armour. Companies like the Beats by Dre used these principles.
Regardless of your budget, these strategies can help the company to market your products and
thousands if not millions of people.
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Situation Analysis:
Micro Factors:
Competitors:
PUMA AG Rudolf Dassler Sport
K-Swiss Inc.
LaCrosse Footwear, Inc
Dick's Sporting Goods, Inc.
New Balance Athletic Shoe
Adidas AG
So that the company's product line innovation has to be very careful with regard to quality
standards, every competitor in this market is very strong. If any of the competitors is going to
benefit from your products, the company could lose many potential customers.
Collaborations:
Nike can cooperate with any mobile company to bundle with new products to be associated with
or are present. A Nike like Apple and Nike have collaborated together for iPod sports kit sales.
Suppliers:
Nike independent third-party suppliers in almost all Asia outsources the production of its shoes.
As Nike gets its merchandise from foreign manufacturers, have little control over product
quality. For example, there have always been concerns about unsafe Chinese consumer products.
Publics:
Nike contractors have limited influence. It can cause damage to the company's reputation as the
United Students Against Sweatshops, led campaigns against Nike.
Intermediaries:
These companies are also selling Nike shoes: JDSports, ASOS, Sports Direct, Schuh, the office,
the footlocker, too, Amazon.
Nike’s Owned Brands:
Converse, Cole Haan, Converse, Chuck Taylor, All Star, One Star, Star Chevron, Jack Purcell,
Hurley, Umbro: Nike's other brands owned.
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SWOT Analysis:
Macro Factors:
Political:
Change in law can affect the policies of the company as China has passed 2 new laws in 2007 to
improve workers rights, bans, imports laws in sweat shops, pressure groups, Europe referendum-
50% of UK products go to Europe, so if company break off from Europe it will affect
organisations.
Pressure groups; Environmental pressure groups are opposed to brand-specific aspects. 'Reaction
to some dope "and" High Gain "was criticised by some, adverting campaigns, such as the T-shirt
slogans. Asia was a huge controversy and criticism of wages and working conditions in the
production of Nike shoes.
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Imports of sneakers in Japan's economy require a submission of the notification of the Ministry
of Trade and Industry.
Economical:
Sales tax, VAT & Import duties can affect the consumer buying power like Ireland has 23%.
Inflation = 2.7% and interest rates are low, this means that consumers may spend more. The
Chinese market is expanding rapidly and it's expected to surpass the US in the next decade as the
world’s largest consumer market, in Pakistan Pak-China Economic corridor is boosting the
economic values in the region that will also affect the business conditions.
Social:
There is an increased focus on doing physical activity to help control weight loss and even
control diseases such as heart disease, high blood pressure and cancer etc.
Technological:
Shoes progress in the field of technology within the production and development. An example is
a development and increase in the use of advertising techniques for online media, apps etc. One
example is the huge increase in iPads and smartphones which are being brought to the market to
buy enables much more efficient and the move online or online shopping and new products.
Environmental:
(G8 Summit) - the global targets set by rich 8 countries in the world; they want to have by 2050
Productions. The amount of pollution a company has permits in place to control pollution can
emit 150 units, for example, carbon dioxide each year. These firms have an incentive to cut
pollution.
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Suggested Markets:
• Islamic republic of Pakistan
• The Islamic Republic of Afghanistan
Why these markets?
Is based on 35 percent of Pakistan's population is one of the major countries of the world. And it
is known as interested in sports as well as good cricket, hockey, squash, swimming and tennis on
people's physical activities and sports as well. Nike's official store in the main cities of Pakistan,
where the market is open and waiting for this brand. People are brand conscious and brand
loyalty.
The second is under 25 years of age, 70 Afghanistan, where the population. Which is still in the
war zone, but the country is getting better, and they are taking part in sports. Afghan cricket team
participated in the T20 World Cup and beat the West Indies.
How could Nike enter into these Markets?
For Pakistan, Nike can adopt the licensed distribution method. The company itself can get the
license for operation in Pakistan and can open the Nike stores in the main cities of the country
like Islamabad, Lahore & Karachi etc. for the other cities like Gujranwala, Multan & Sialkot
multibrand stores will work. Online stores will help out more all over the country.
In the case of Afghanistan, Nike can give franchises and operate the business without investing
many resources as the country is still in the war.
Marketing Mix:
Pakistan and Afghanistan are Muslim countries and having the majority or Muslims so Nike
must consider this factor.
Product:
Nike has to modify a very little variety of its sportswear for the women for sale in these
countries. Women prefer to cover themselves fully rather wear the dress that exposes their
bodies. So Nike has to do a little modification in clothing to get attraction in these markets.
Price:
Nike is one of the most popular brands in sportswear with high quality and customer satisfaction,
so the high price will not affect the sale. Consumers are willing to pay to the quality, comfort and
the brand. Nike can also offer some discount on the purchase of any second product and that will
increase the sale of the product line.
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Place:
Nike can operate its business in the major cities of both countries. Major cities like Islamabad,
Lahore, Karachi & Kabul will attract the potential customer. In the small cities, it can operate the
business through online stores. Well, known shopping malls are best to showcase the product
line.
Promotions:
Nike can promote its products through advertisement (with international as well as local
celebrities). For Afghanistan advertisement in the local language will be more effective and in
Pakistan local and English ads will work at the same level (due to the difference of potential
customer).
For the promotional purpose, Nike should conduct the physical activity events or sponsor the
different sports events in the respective countries. This will give the company and product
awareness to the customer.
Nike can take the corporate social responsibilities like on every purchase of Nike product the
specific amount will be donated to build sports complex/playing grounds in both countries.
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Recommendations:
Department stores are the first channel for sales and marketing of consumer goods. Furthermore,
the store must be designed to make a strong first impression sample product decoration. Such as
special discounts and announcements can be put in place for seasonal promotional campaigns.
The combination can be made to the new lines festival.
Malls and is considered effective channels for promotion in addition to department stores,
discounts and promotional activities on television commercials. This points up the pricing for
different product categories, consumers are advised to pay attention to affordability in different
cities.
Due to the growing buying power, should be the goal of increasing sales of consumer goods
leather middle-class users. It meets the requirements of middle-class tastes, is also useful to
introduce the appropriate design.
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Conclusion:
Pakistan and Afghanistan first goal of the Nike brand will build its brand reputation, image and
equity. This is to ensure that the brand name is not tarnished by concerns about human rights and
environmental issues. The secondary purpose of the Nike brand will ensure compatibility of
market share and sales volume of its competitors. A company, a good reputation and image of
the product or brand can (with-profit business).
Nike is the Reebok. It then noted that the ubiquitous Nike Reebok outsells the world, does not
reflect well on the brand.
Therefore, it is reasonable to say that Nike's ratings could do with a boost. The best way to
achieve this would be a serious brand building. Brand image should be improved and people
should be aware of their presence. So, the logic choice for the image of the brand as a key
corporate goal and improve their reputation is very clear.
Nike specific qualifications in the field of brand marketing and brand strength of consumer
awareness, the property sector. As the Nike sports events/galas can organise, health walks,
electronic, print and sponsorship, advertising on social media. Globally, it grows on the key
competitive distinction. As a result, a number of the athletic footwear industry in most places
around the world, Nike's market share. Like "Just" phrase and the Nike "swoosh" like symptoms,
immediately call associated with sports icons to serve as the Nike empire. It is the time that this
competition is leveraged in India.
Nike's vision is to be the industry leader. Provided that the Company intends to continue to
develop quality products. Nike is required to meet the needs of ever-changing customer
innovation of products. In the past, product differentiation is using the company's competitive
strategy. While the Nike reputation, emphasis will continue in this field.
Nike is known for its innovative and leader in this area. This product allows Nike to raise the
rest.
Nike has been making a great effort to focus on price leadership. Nike products in the past have
focused on the upper end of the price category. Nike is now focused on lower prices with quality
products. This will enable Nike to grab more market share percentage
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References:
www.nike.com
www.google.com
http://www.nikebiz.com/crreport/
www.ukessays.com
http://www.slideshare.net/
www.managementstudyguide.com