NIKE Inc.

Dian Ratnasari (0849018)

Dwi Martiyanti (0848022)
I Made Sindhu Yoga (0848037)
Case Summary
 Nike Inc. is a major publicity traded sportswear and
equipment supplier based in the United States.
 The company was founded on January 25, 1964 as Blue
Ribbon Sports by Bill Bowerman and Philip Knight, and
officially became Nike, Inc. in 1978.
 Philip Knight officially announced his resignation as CEO
and president of the world's largest sneaker company
 Perez joined Nike from S.C. Johnson & Son, a
household-products company that he had helped
to expand into multiple international markets.
 Knight hoped that Perez could bring some more
organizational and managerial discipline to a
company that has been expanding rapidly into new
global markets as well as acquiring more brands
 Perez, appears to be well-suited to help Nike
as it morphs into a less volatile, global
consumer concern. He appears to have two
key strengths: Experience selling in multiple
markets across the world as well as
managing a big portfolio of consumer brands.
 Fact is, Nike no longer singularly focuses on
making and marketing sneakers. It now owns
and manages brands such as dress and
casual-shoe
 Sowhy did Knight even hire Perez? Because
he wanted someone with strong financial and
managerial discipline and a track record
overseeing the growth of a profitable
consumer-products company.
Issue
 The board of Nike Inc. wanted somebody
with a different viewpoint to drive the
company down a different path in terms of
being experienced with multiple brands and
also having strong international experience
Problems

 What makes Nike become a strong brand

especially for maintaining and managing Nike’s
brand?
 What makes Perez's leadership (as the first
outsider) was clashing with Nike insiders?
Analysis #1
 Sport Sponsorship
sponsorship has not only increased the
expense of sponsorship but it has also
created environment where cutting through
advertising clutter has become more difficult
 Nike History

Nike has built its empire based on its mission

to "to bring inspiration and innovation to
every athlete in theworld"
 Cause-Related Marketing
Cause-related marketing (CRM) is
commercial activity by which businesses and
charities or causes form a partnership with
each other to market an image, product, or
service for mutual benefit.
Analysis #2
 Knight said the differences in style and strategy
under Perez caused management to operate at only
80% efficiency.
 Perez didn't have an intuitive sense of Nike as a
brand
 Perez’s spreadsheet and consultants thought this
was a good idea - but in this industry, it would be
market-share suicide
Recommendation
 Of all the commercial advantages a Nike corporation
may seek to exploit through sport sponsorship
 Refusing to let go of the helm is a though thing to
do, so it won't happen that easy. Succesion planning
is the priority of every organization.
 If a charismatic leader is to remain on the premises
after a replacement arrives, boards must draw clear
lines of demarcation to allow the newcomer to do his
or her job.