This paper provides a comprehensive business analysis of the company "Nike, Inc". Nike's
dominance in the sport apparel and equipment industry is widely recognised and requires no
further introduction.
This study aims to examine Nike's business model through the application of Porter's Five Forces
framework, as well as to classify its business level strategies by employing Porter's Generic
strategies. Subsequently, we will proceed to examine the corporate level strategies of Nike by
employing the BCG matrix, and illustrate the hierarchical structure of the corporation. In this
discussion, we will look into a vital aspect of organizational dynamics, namely the
decision-making process. Specifically, we will examine the individuals responsible for making
critical determinations and afterwards overseeing their implementation within the company. In
the subsequent section, we will delve more into the competitive advantage possessed by Nike
and the markets in which the company operates. Finally, we'll make some observations about
Nike's leadership style and the corporate culture as a whole. The paper will conclude by
providing our own recommendations that we deem pertinent and essential for Nike to maintain a
prominent position in the sport apparel and equipment sector.
3. Nike, Inc. is globally recognised
as the leading provider and
producer of athletic footwear,
sports gear, and equipment. It
was founded by Philip H. Knight.
A more comprehensive
understanding of Nike can be
attained through the study of the
book "Shoe Dog," penned by
Philip H. Knight, the founder of
Nike.
NIKE!
4. ACOMPREHENsIVEANALYsIsO
FNIKEBYUsINGPORTER’s5FORCEs
Threat of
new entrants
(Low)
Rivalry among Threat of
substitute existing competitors
products (High)
(Strong)
Bargaining power
of suppliers
(Low)
Bargaining power
of buyers
(Moderate)
• New entrants can
readily distribute
their products
through Amazon,
Target.
• Reach their target
customers through
Google Play and
App Store apps.
• Advertising on
Facebook and
Google.
• The sports apparel
and equipment
industry is quite
saturated.
• Nike faces fierce
competition from
Adidas, Puma,
Admiral, New
Balance, Reebok,
but counters with its
own marketing mix.
• Nike's market share
and growth is
hampered by the
availability of
numerous
substitutes.
• Customers have
alternatives such as
Adidas, Puma,
Reebok, and so on.
• Nike has multiple
suppliers and that
no single supplier
has undue influence
over Nike's supply
chain.
• Nike has additional
options and can
swap suppliers
whenever
necessary.
• The sportswear
business is highly
competitive due to
the availability of
similar products
from other firms.
• Customers are more
likely to seek
alternatives and
switch brands as a
result of this
competitiveness.
5. BUsINEssLEVELsTRA
TEGIEs
OFNIKEUsINGP
O
R
TER’s
GENERICsTRATEGIEs
Differentiation
strategy
NIKE constantly strives to
differentiate itself from rivals
through product design,
diversity, and quality, as well
as the incorporation of
technology into its products.
They also offer customized
items
Overall cost
leadership strategy
NIKE does not pursue a cost
leadership approach. Nike
products have always been
high-end items that people
are ready to pay a premium
for because of its brand value
and product excellence.
Focus strategy
NIKE does not adopt a focus
strategy because it has a
wide market range. It sells
everything from clothing to
shoes to athletic equipment.
As a result, they strive to be
the best in all of these areas
rather than just one.
6. C
O
R
P
O
R
A
T
ELEVELsTRATEGYO
FNIKEUsINGB
C
GMATRIX
Star Cash Cow Question Mark Dog
• Nike has reached
maturity, with a large
market share and rapid
growth, and they must
maintain this pace
through continuous
investment.
• Nike may have a larger
market share, but their
growth rate is slower.
• Nike has a 25% market
share in its industry,
making it the market
leader.
• Nike should
concentrate on their
low sales because of
poor product
distribution.
• Nike must make a
concerted effort to
penetrate the market
by displaying their
products in every or
more outlets.
• Nike's strategic plastic
bag business has been
losing money for the
last five years due to
environmental
concerns.
• Nike has recently
launched artificially
flavoured products in
the hope that this
market will expand.
That, however, did not
occur.
7. T
H
EKEYDECIsION-MAKERsA
N
DT
H
EC
O
R
P
O
R
A
T
EHIERARCHY
'The Board' is Nike's key decision-maker. The hierarchical structure-
Senior management team Global
Headquarter
s
Regional Headquarters Subsidiaries Nike Executives
• This team comprises • Responsible for • Its operations are • The majority of • Nike executives
the CEO and other maintaining divided into many decisions are made oversee product
high-ranking executives. standards to run geographic regions. through these development,
its business subsidiaries, but only marketing, and
• The centralized globally. • This subdivision with the approval of distribution.
decision-making assists Nike in headquarters.
structure employed by • Centralization recognising local • Their mission is to
Nike facilitates effective allows for the demand, improving • Regional or foster excellence and
information processing creation of a coordination, reducing sub-regional empower people
and a concentrated brand image complexity, and intervention is used through sports and
emphasis on key areas. across all target improving decision to localize marketing active lifestyles.
markets. making. efforts.
9. Overall Culture of
DIVERSE
NiT
kA
L
E
eN
T
E
D INCLUSIVE
● Diversity and inclusion
boost production and
fulfilment at the
sportswear business.
● Nike trains its talent to retain it.
The company offers mentoring
and coaching.
● These techniques are based on
developing internal leaders to
support international expansion.
● Nike corporate culture preserves
the people and facilities needed to
make the world's most
sought-after sports equipment.
● Diversity helps Nike innovate,
grow, and stand out.
● HR initiatives like “Speak Up!”
encourage employees to speak
up and share their ideas,
preserving the company's
diversity.
● Nike's culture helps it maximize
product development processes,
especially for new product
concepts.
● Nike's “Bias to
Breakthrough” and
“NCourage” programmes
enable unlimited
creativity.
10. LEADERs
OF
NIKE
|VIsIONAR
YLEADER
-Wanted Nike to be
no.1 in the world
|GO
AL
-
ORIENTED
STRA
TEGIEs
-Demanded high
performances to
satisfy goals
|TRUsTINEMPLO
YEEs
-Provided direction
but gave creative
freedom
PHILIPK
N
I
G
H
T
Founder of NIKE
CEO (1964-2004)
11. |AHANDs-O
NLEADER
-Participatory Leadership Style
-Liked to involve himself in the
work
|INDUsTR
YB
R
E
A
K
T
H
R
O
U
G
H
-His innovative and engineering
valuable skills for new designs
-Led NIKE Air Campaign
-Booming Business
|PERsONALIsEDEXPERIENCE
-Strong customer
relationships
MARKP
ARKER
Executive Chairman of
NIKE Former CEO of NIKE
(2006-2020)
|TRIPLE-DOUBLESTRA
T
E
G
Y
-Digital transformation plan
-2X Speed, 2X Innovation,
2x Customer Support
12. |AF
A
THER-FIGURE
-Guided all his employees
-Treats them like one big family
-Paternalism
|SERV
A
N
TLEADERsHIP
-An advocate of servant
leadership
-Believes work is meaningful
when it involves serving others
|INCLUsIVECAMP
AIGNs
-Targets Gen Z
-Campaigns to make everyone
feel inclusive
-Customisation opportunities
J
O
H
ND
O
N
A
H
O
E
President & CEO of
NIKE (2020-Present)
|ONLINEMARKET
-Plan to capture the vast
online market
13. C
ONCLUsION
Nike Inc. leads the athletic footwear and
apparel business due to its commitment
to innovation, quality, marketing, and
supply chain management.
The different leaders of this company
throughout the years implemented their
own leadership styles and strategies to
shape and direct the company.
With its massive global reach to
customers along with steady financial
performances over the years, Nike, Inc. is
still favourite amongst its stakeholders.
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▪ Mobile optimisation
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