Nike is an American multinational corporation that designs, develops, markets and sells footwear, apparel, and equipment. Founded in 1964 in Oregon, Nike has become a leader in the athletic shoe and apparel industry through innovative product design and effective marketing strategies. Nike focuses on sustainability and social responsibility through initiatives that aim to improve working conditions, reduce environmental impact, and empower workers.

1. Nike
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2. About Nike
Nike, inc is an American multinational corporation that designs, develops,
markets and sells footwear, apparel, and equipment, accessories and
services
Founded: January 25, 1964
Founders: Bill Bowerman, Phil Knight
Headquarters: Beaverton, Oregon
CEO: Mark Parker
Stock price: NKE (NYSE)$102.44 +0.99 (+0.98%) - May 08, 2015
Subsidiaries: Converse, Hurley International

3. % Change
NIKE 58.18
Adidas -23.18
Under Armour
164.26

4. Core Competency
“Nike is a marketing company, and the product is the most
important marketing tool” - Phil Knight
Nike’s core competency lies in the area marketing;
branding
Strong brand power
Consumer brand awareness

5. History
Nike’s roots go back to a company called Blue Ribbon Sports, founded by
former University of Oregon runner Phil Knight and his former track coach
Bill Bowerman in 1962
“ Our success. in the early days anybody with gluepot and a pair of scissors
could get into the shoe business, so the way to stay ahead was through
product innovation. We happened to be great at it” - Phil Knight
Then in the mid-1980s, Nike lost its footing, and the company was forced to
make a subtle but important shift. Instead of putting the product on center
stage, it put the consumer in the spotlight and the brand under a
microscope—in short, it learned to be marketing oriented. Since then, Nike
has resumed its domination of the athletic shoe industry- HBR

6. Marketing Strategy
“Focusing solely on the product was a great way for a brand to start, but it just
wasn’t enough” - Phil Knight
Wieden & Kennedy- Ad Agency
Create emotional ties with the buying public
Player and team sponsors

7. Brand Power
Nike is a champion brand builder. Its advertising slogans—“Bo Knows,” “Just Do It,”
“There Is No Finish Line”—have moved beyond advertising into popular expression.
Its athletic footwear and clothing have become a piece of Americana. Its brand
name is as well-known around the world as IBM and Coke- HBR
● Ranked 35th most powerful brand in the world and 1st in apparel. Adidas is ranked
185th and 5th in apparel. - Brandirectory.com
● 21st in Forbes’ World’s most valuable brands.
● Forbes #1 Most Valuable Sports Brand in 2014
- Brand value in 2014: 19 Billion
- Nike commands 62% of the U.S. athletic footwear market, including the Jordan
brand, and its market share rose 100 basis points in August

8. Porter’s 5 Forces:
Competitive Rivalry Within The Industry
(Medium to High)
• Competition is intense
• Innovation is key
• Nike has a strong brand image

9. Porter’s 5 Forces:
Bargaining Power Of Suppliers
(Low to Medium)
• Suppliers are outside of America
• High switching costs
• Nike has bargaining power

10. Porter’s 5 Forces:
Bargaining Power Of Customers
(Low to Medium)
• Wholesale (80.6%) and direct-to-consumer channels (18.9%)
• End user is forced to pay the price that Nike sets

11. Porter’s 5 Forces:
Threat Of New Entrants
(Low to Medium)
• High barriers to entry – starting capital
• Internet is becoming prominent

12. Porter’s 5 Forces:
Threat Of Substitute Products
(Low to Medium)
• Worldwide demand expected to grow
• Threat from the rise of counterfeit products

13. Strengths
● Competitive
● Sponsors the most professional athletes
● Market share
● Strong cash flow
● NikeID
● Direct to consumer, Nike Stores, Nike Town
● Nike outlet stores
● Innovation’s such as the Flyknit fabric, Free, Air Max
● Market variety
○ Nike Snowboarding, Nike Surf, Nike Optics, Nike Fuelband
● League contract with the NFL

14. Weaknesses
● Large Competitors
● The price of their products exceeds the value
● High advertising costs: $2.7 billion in 2013
● Largely reliant on footwear products
● History unethical business practices
○ Time laws, Wages, Child labor, Poor working conditions
● Endorsement costs
● Not the leading brand in all sports: Hockey, Baseball, Soccer, Rugby,
Crossfit, Volleyball, Cricket

15. Opportunities
● Favorable industry trends(running is growing, people are becoming more
active)
● Expansion of outlet, or “factory store” to create profit off unused product
● Expansion to cover sports in which nike is not dominant
○ Hockey, Baseball, Soccer, Rugby, Crossfit, Volleyball, Cricket
● Takeover the NBA contract, which expires with Adidas after this season
● Reducing the unethical or questionable business practices
● Continuing to develop as a fashion brand, not just an athletic brand
● Developing more of an international brand
○ FIFA World Cup, Olympics

16. Threats
● Developing companies
○ Under Armor, Skechers,
● China’s moderate economic slowdown
● Maintaining the eco-friendly reputation
● Consumers price sensitivity
● Further unethical or questionable business practices
● Economic threats, recession

17. Value Disciplines
-Nike Product Leadership is characterized by its products - that are best in the
market and highly valued by customers.
- Nike provides encouragement innovation - a culture that fosters
experimentation and service improvement.
-Also throughout the years they have created risk oriented management style
that allows the enterprise to take risks.
Example: They have developed adequate tools for dealing with the problems of
complexity and uncertainty.
-Moreover, Nike is also capable of delivering products on time and providing
exceptional service.

18. Sustainable Business Development
-Nike has maintained product leadership globally. Their commitment to
sustainable business development is the main focus.
-The leaders in the company recognize the interconnection between the
sustainability, brand enhancement, capital efficiency and profitability. These are
the four pillars of Nike growth strategy.
-Nike appeals to those who look for the latest and best products.
-Because of these qualities they have been able to maintain their dominance in
Product Leadership.

19. Triple Bottom Line
What makes up the triple bottom line?
It captures the social, economic and environment, the people, planet and profit.
Historical, Nike was to known to be the leading corporations committing human rights
violations in their factories. Therefore, Nike needed to make it clear to consumers they were
taking action and developing a plan to become more socially responsible by improving
conditions in their factories.
Today, Nike has been working hard to provide its workers with rightful and empowering
opportunities. Nike’s vision of sustainability remains the same: “To bring people, planet and
profits into balance”

20. People
In becoming a more responsible company, Nike is currently trying to follow the “Triple Bottom Line" , the
idea that the impact of a company on people and the planet is just as important, if not more important,
than profit.
Nike has provided a code of conduct on labor standards and working conditions in their contract factories.
Names and addresses of more than 700 contract factories worldwide producing Nike-branded products are
listed on the company’s website.
Nike made an increasingly aggressive effort to establish a strong commitment toward social responsibility
through its business practices. With the introduction of its new line of footwear, “Considered,” Nike has
combined social responsibility with a commitment to sustainability without compromising the quality of
the product.

21. Planet
The footwear line “Considered” was Developed at Nike’s headquarters
Nike reduced the energy used for transportation and lessened climate change impacts
The manufacturing process minimizes solvent use by more than 80% in comparison with
Nike’s typical products. The organic solvents have been switched with water-based
chemicals that are not harmful.
Leather comes from a tannery that recycles wastewater to guarantee that toxins are kept out
of the environment, and the leather is colored using vegetable-based dyes.

22. Profit
Nike’s yearly profit $13.86 billion

23. Future Strategic Direction
Nike-“To become the leading athletic brand in the world”
Our Recommendations:
Improve the working environments to change the production stigma
Develop products of quality rather than just a quality brand name
Expand the brand recognition to unchartered markets
Continue to expand the sustainability strategy
Take over the NBA contract after this season

24. Works Cited
http://www.trefis.com/stock/nke/articles/217421/marynike-through-the-lens-of-porters-five-forces/2013-12-02
http://www.mba-tutorials.com/strategy/1677-porters-five-forces-model-of-nike.html
http://www.nikeresponsibility.com/report/content/chapter/our-sustainability-strategy
http://www.forbes.com/2010/02/03/most-powerful-sports-names-tiger-woods-nike-cmo-network-sports-brands.html
https://hbr.org/1992/07/high-performance-marketing-an-interview-with-nikes-phil-knight
http://www.valueline.com/Stocks/Highlights/SWOT_Analysis__Nike.aspx#.VVJkTTd-PzI
http://www.marketingteacher.com/nike-swot/
http://www.quality-assurance-solutions.com/swot-analysis-nike.html
http://www.nikeresponsibility.com/report/content/chapter/our-sustainability-strategy
http://www.nikebiz.com/crreport/content/strategy/2-1-1-corporate-responsibility-strategy-overview.php?cat=cr-strategy
http://www.workplaceethicsadvice.com/2012/03/triple-bottom-line-reporting-nike-pays-attention-to-its-corporate-social-
responsibilities-csr.html
https://the3bottomline.wordpress.com/2010/04/15/why-a-triple-bottom-line/
http://www.nike.com/us/en_us/?cp=usns_kw_txt!g!c!br!e!nike&k_clickid=dfbf471c-27f5-4c82-acc0-9eb99ee138ae
http://about.nike.com/