In our Strategic Management Class at the Monfort College of Business. We where assigned the taks to conduct an analysis of NIKES Strategic business plan. Here is the presentation that me and my teamates put together using many different reasearch platforms and also using Canva to design the look of our presentation.

1. OMAR ANDAZOLA EMILY MAJORS KRIS LOVIN
Strategic Management Case
Analysis
June 7th 2016
Dr. Isaac Wanasika

2. NIKE TOP MANAGEMENT
PHIL KNIGHT
FOUNDER OF NIKE
MARK PARKER
CEO
TREVOR EDWARDS
PRESIDENT OF NIKE
BRAND
A director since 1968, is
Chairman of the Board of
Directors of NIKE, Inc. Mr.
Knight is a co­founder of
the company and, except
for the period from June
1983 through September
1984, served as its
President from 1968 to
1990
For more than 30 years,
he’s brought innovative
concepts and engineering
expertise into such vital
roles as Vice President of
Consumer Product
Marketing, Vice President
of Global Footwear and
Co­President of the Nike
Brand.
Is responsible for leading all
category and geographic
business units, the Jordan
Brand and Action Sports,
which includes Hurley
International LLC, Digital
Sport and brand management
throughout the world as well
as leading NIKE's wholesale,
retail and e­commerce
operations.
Net Worth: 28B Net Worth: 250M Net Worth: 5.2M

8. Short Term Goals
Financial
ROI Capital
Accelerated Cash Flow
Revenue Growth
Increase
Earnings/Share
Returns on capital
Sustainability
Manufacturers
Materials
Labor

9. Expand Gross Margin
Optimize Selling & Admin
Expense
Financial Strategies /Tactics

10. Product Innovation
Reduce Costs
Supply Chain
Increase Margin in DTC opps
Expand Gross Margin

11. Consumer
Engagement
Infrastructure
Legacy
Infrastructure
Incremental Revenue
Gross Profit
Efficiency
Optimize Admin & Selling Expense

12. Sustainability

13. NIKE
EXTERNAL
ENVIRONMENT

14. Political Drivers
Nike is the number one in sportswear. Nike’s profits, turnover, marketing,
sponsorship and advertising surmount all other sportswear companies.
Nike not only refers to its position as a market leader, but also sees itself
as leading the industry in labour practices initiatives.
Nike refers to themselves as a network firm. This means they employ
8000 people in management, design, sales, and promotion, and leaves
production in the hands of some 75,000 workers hired by independent
contractors.
Most of the out-sourced production takes place in Indonesia, where a
pair of Nikes that sells in the UK for around £60 is produced for about £3
and young women paid as little as £0.10 per hour.
At the moment Indonesia is Nike’s biggest production centre, with 17
footwear factories that employ 90,000 workers and produce about 7
million pairs of shoes each month.
Nike Sweatshops

15. “ATNIKE,WEBELIEVEITISNOTENOUGH
TOADAPTTOWHATTHEFUTUREMAY
BRING–WE’RECREATINGTHEFUTUREWE
WANTTOSEETHROUGHSUSTAINABLE
INNOVATION.”
Nike CEO, Scott Parker

16. Eliminating waste through more efficient product
design and manufacturing technologies.
WASTE
In FY15 alone, 54 million pounds of factory scrap was
transformed into premium materials used in Nike
performance footwear and apparel.
Footwear manufacturing, diverted 92% of total waste
from landfill and incineration without energy recovery.
ENERGY
Launched Energy and Carbon program in 2008, Nike
footwear contract manufacturers have cut energy use
per unit in half
Meaning today it takes about half the energy and
emissions to make a pair of shoes compared to eight
years ago.

17. Focus on understanding, reducing and improving
our water use.
WATER
Reduced water use by 18% per unit in apparel materials
and 43% per unit in footwear manufacturing, far
surpassing goals for FY15.
CHEMISTRY
Launched Energy and Carbon program in 2008, Nike
footwear contract manufacturers have cut energy use
per unit in half
Meaning today it takes about half the energy and
emissions to make a pair of shoes compared to eight
years ago.

18. INNOVATING THE ROLE OF
THE WORKER
Rely on a source base that is high performing, resilient and
agile, with workers that are motivated and fairly compensated
to deliver high productivity and world­class product.
Running pilot research programs dedicated to engaging
and connecting workers to healthcare, education and
finance networks to make positive changes inside and
outside the workplace.
NIKE’S COMMITMENT TO TRANSPARENCY
Transparency and accountability are fundamental to Nike’s
sustainable business approach.
The Nike Manufacturing Map discloses the names, locations
and demographic information about the workforce at the
factories we contract to make our product, and holds us
accountable for our chosen source base.

19. MANUFACTURING GOALS FOR 2020
• Source 100% from factories that meet
our definition of sustainable
• Ensure contract factory workers share
in productivity gains
• Establish partnerships supporting the
needs of factory workers both inside and
outside the factories

20. Our mission to bring inspiration and innovation to
every athlete in the world drives us to encourage
every person to reach their full potential, whether it’s
on the track, field or court, at work or at home. We
strive to help people be active and engaged, fully
participating in the world around them.
What’s good for our consumers is also good for our
employees and our communities. We believe that
investing in our employees and communities is
essential to achieving our ambitious growth and
innovation agenda.
Our 2020 Targets to Unleash Human
Potential:
• Invest at least 1.5% of pre­tax
income to positively impact
communities
• Attract and develop diverse talent to
drive the future of the industry

21. North America Performance Drivers
Nike experienced double­digit growth in its top line across several major categories including Jordan,
Sportswear, Running, and Men’s Training.
Nike introduced several product innovations including Tech Pack, Aeroloft, and Flyknit.
Sales growth trends were strong in both the wholesale and direct­to­consumer (or DTC) channels.
Analyzing Nike’s performance in Greater China
Greater China was the fastest­growing Nike segment in fiscal 2Q16. Segment sales grew 23.7% year­over­year to
$938 million. The segment accounted for 12.2% of Nike’s sales and 24.4% of pre­tax income in the quarter.
Nike experienced growth in almost all categories in Greater China with sportswear, running, and NIKE basketball
being the major sales drivers.
Overall
Robust Growth In Running, Basketball And Soccer Categories
Strong Growth In North America, Emerging Markets And Central And Eastern Europe
Increasing Profitability
Innovative Product Portfolio
Economic Drivers

22. Social Drivers
INNOVATING TO GET
KIDS MOVING
CREATING POSITIVE
IMPACT IN LOCAL
COMMUNITIES
ACCELERATING GLOBAL CHANGE

23. Technological Drivers
3­D motion analysis (kinematics)
Ground reaction forces and loading rates (kinetics)
Foot­pressure measurement (in­shoe and external)
Accelerometers
Foot morphology (anthropometrics)
Electromyography (muscle activity)
High­speed video (>30,000 frames/second)
Humac­Norm (isokinetic muscle strength testing and measurement)
Metabolic cart (oxygen consumption)
Electrocardiograms (ECG)
Skin and core­temperature sensors
Skin humidity sensors
Copper Sweating Mannequin
Thermal camera
Blood chemistry analyses
TESTING METHODS

24. Technological Drivers
PHYSIOLOGY
Physiology team conducts research with the goal of creating footwear and apparel solutions that
enhance athlete performance. The goal of this research is to create footwear and apparel solutions
that lower an athlete’s body temperature and reduce his or her energy expenditure, thereby
allowing him or her to train longer and harder.The team focuses on three primary athlete needs:
Thermoregulation
Recovery
economy

25. Technological Drivers
EXAMPLES
Thermoregulation Recovery economy

26. MAJOR COMPETITORS
ADIDAS

27. MAJOR COMPETITORS
UNDER ARMOUR

28. MAJOR COMPETITORS
NIKE DOMINANCE

29. PORTERS FIVE FORCES
Threat Of New
Entrants
Low to Medium
Bargaining
Power Of
Suppliers
Low
Competitive
Rivalry Within
The Industry
Threat Of
Substitute
Products
Bargaining
Power Of
Customers
Low to Medium
Medium to High Low to Medium

30. STRATEGIC GROUPS
BRAND RECOGNITION
PRODUCT LINE
CASUAL ATHLETIC
LOW
HIGH

31. NIKE
INTERNAL
ENVIRONMENT

32. KEY ORGANIZATION RESOURCES AND CAPABILITIES
Research and development Innovative
Variety of products
Major Manufacturing and distribution facilities
Marketing strategies

33. VALUE CHAIN ANALYSIS
Firm infrastructure: It system across supply chain, strong financial position and CRS,
empowerment of top management, great financial discipline with low debt, strong
brand product market place solution delivery and support, effective compliance
process through strategic knowledge and verification
Human resources management: strong management team, global learning and staff
training, excellent employee relationship, minimum hierarchy concept, great
management and efficient corporate strategy globally, blend of new hires and
promotion, high ethical values among employees, well monitored labor audit add
brand audits
Technology development: research and product development, leading edge in
technology development, product improvement, ability to change, great product
technology such as motion analysis metabolic rate and blood work, air­sole
technology expert
Procurement: long term and trusting relationship with supplies, localized and bulk
procurement, just in time strategy as finished goods are shipped as soon as they are
ready for sale, buffer and safety stock in hand

34. VALUE CHAIN ANALYSIS
Inbound logistics: Low production costs, locally purchase most raw materials in bulk,
specialized materials importation, inventory control and reduced inventory risk, focus
on product design marketing and product technology,
Operations: Outsourcing manufacturing and assembly, design, technological
innovation, effective supply chain management, heavily investment in R and D,
Quality control, low and no packing options, no heavy metal, glue or solvent used
Outbound logistics: strong control over global distribution channel, just in time
delivery, good supplier relations, ability of forward integration, use of strong servers to
support and manage supply chain projects
Marketing and sales: high brand recognition and reputation, scale SD vantage, price
leadership and value based pricing strategy, first mover advantage in e­commerce in
the industry, aggressive marketing, celebrity endorsement, high allocation on
marketing budget, strong customer base, diversity of products offered online
Service: customer care, pre­sales and after sales service, use of IT to improve
customer care, increased customer satisfaction, customization

35. Areas where internal efficiency and cost savings can be obtained
Research and development
Customization

36. SWOT ANALYSIS
STRENGHTS OPPORTUNITIES
WEAKNESESS THREATS
Brand Recognition
High Quality Product
Effective Marketing
Strategy
Strong R&D
Strong Distribution Chain
Overseas Manufacturing Dependencies
Medium Retail Presence
High Price Compared to Competitors
Decreasing U.S. Market Share
Expansion into emerging
markets (CHINA)
Growth in Sustainability
Increase Demand in
product Innovation
Growth in Female Athletes
Fierce Competition Within Industry
Revenue Reliance on Consumers Discretionary
income
Fluctuation In Currency
Losing out on Signing Big Time Athletes

37. NIKE
FINANCIALS
& ANALYSIS OF MARKETING POSITION

40. Kris Finance Slide

43. Stock Performance

44. Company Value & Competitor Value
Nike is number one with a brand value of 19 billion dollars
Adidas is number 2 with a brand value of 5.8 billion dollars
Under Armor number 3 with a brand value of 4.1 billion dollars
THE MARKET IS CURRENTLY IN A MATURE STATE

45. MARKETING STRATEGIES
Celebrity Endorsements
Word of Mouth
Sponsorship
Innovation
Selling Benefits Advertising

46. PROBLEMS/ISSUES
The growth of competitors
Going out of style keeping
up with trends
Recovery from ethical issues

47. NIKE
STRATEGIC
POSITION

48. CORE COMPETENCIES
Strong Marketing Strategies Extensive R&D Capabilities
Customer Focus Supply Chain Capabilities

51. Competitive Advantages
Branding
Scope
Scale
Customization
Innovation

52. NIKE
RECOMMENDATIONS

53. CONTINUE MAINTAIN
RESEARCH &
DEVELOPMENT IN
ENVIRONMENTAL
PRODUCTS
DO NOT STRAY AWAY
FROM PROPER LABOR
PRACTICES &
PROTECT EMPLOYEES
CONNECT WITH LOCAL
COMMUNITIES AND
KIDS THROUGH
ADVERTISING
CONNECT
CORPORATE SOCIAL RESPONSIBILITY & ENVIRONMENTAL RECOMMENDATIONS

54. DONT SLEEP RESEARCH
OBTAIN NEW BIG
TIME ATHLETES TO
THE NIKE TEAM AS
ENDORSEMENT PAY
CONTINUE TO
INNOVATE PRODUCT
PERSONALIZATION IN
EACH ATHLETE
ADVERTISE THE FACT
THAT NIKE HAS
FIXED THEIR SUPPLY
CHAIN ISSUES
SUPPLY CHAIN AD
SHORT TERM RECOMMENDATIONS

55. EXPANSION INTEGRATE
LOOK FOR EMERGING
MARKETS TO EXPAND
(CHINA,BRAZIL)
NIKE HAS THE
CAPACITY TO
INTIGRATE NEW
TECHNOLOGY . USE IT!
BECOME THE MAIN
SPONSOR OF MAJOR
SPORTING EVENTS
WORLD EVENTS
LONG TERM RECOMMENDATIONS

56. SOURCES
About Nike ­ The official corporate website for NIKE, Inc. and its affiliate brands.. (2016). About.nike.com.
Retrieved 6 June 2016, from http://about.nike.com/
(2016). Retrieved 6 June 2016, from http://www2.warwick.ac.uk/alumni/services/eportfolios/bsqjfb/nike.pdf
(2016). Retrieved 6 June 2016, from
http://s1.q4cdn.com/806093406/files/doc_financials/2015/ar/docs/nike­2015­form­10K.pdf
Forbes Welcome. (2016). Forbes.com. Retrieved 6 June 2016, from
http://www.forbes.com/sites/panosmourdoukoutas/2014/09/28/how­nike­wins/#665cf9166ebe
Key Trends Impacting Nike's Performance In 2013 ­­ Trefis. (2016). Trefis. Retrieved 6 June 2016, from
http://www.trefis.com/stock/nke/articles/205350/key­trends­impacting­nikes­performance­in­2013/2013­09­
11
Nike. (2016). MIT Sloan Sustainability Initiative. Retrieved 6 June 2016, from
http://mitsloan.mit.edu/sustainability/profile/nike
Nike Through The Lens Of Porter's Five Forces ­­ Trefis. (2016). Trefis. Retrieved 6 June 2016, from
http://www.trefis.com/stock/nke/articles/217421/marynike­through­the­lens­of­porters­five­forces/2013­12­
02
Nike, Competitive Advantages. (2016). Slideshare.net. Retrieved 6 June 2016, from
http://www.slideshare.net/divya­mishra/nike­competitive­advantages
North America Is Nike's Most Significant Growth Driver ­ Market Realist. (2016). Marketrealist.com.
Retrieved 6 June 2016, from http://marketrealist.com/2015/12/north­america­significant­growth­driver­nike/

57. THANK YOU