Professional Documents
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Analysis
SWOT analysis Graphical presentation
External
Research & development Advertisement Other external practices
HISTORY
1962: 1962: Phillip Knight, a Stanford University business graduate and former member of the track team, arranges to import athletic shoes from Japan and sell them in the U.S.. Knight created Blue Ribbon Sports as a cover name for his small-scale shoe-selling operations. 1964: William Bowerman becomes a partner by matching Knight's investment of $500. 1965: Hires a full time employee, and annual sales reach $2,000. 1978: The company changes its name to Nike. 2001: Nike opens its first Nike Goddess store, a unit targeting women, in Newport Beach, CA.
NIKE OVERVIEW
Headquarter: Beaverton, OR, Washington Country. Type: Public Ltd. Industry: Textile Apparel, Footwear & Accessories. Market Cap: 21.738 billion (F.Y. 2010) Ranked 173 in the Annual ranking of America's largest corporations (Fortune 500 magazine)
CONTu
Nike s principal business activity is the design, development and worldwide marketing of high quality footwear, apparel, equipment, and accessory product Distributed in over 160 countries around the world: (Asia, Australia, Canada, Europe, Latin America, and the United States) Nike is the largest seller of athletic footwear and athletic apparel in the world. Employees: 26,000 worldwide. 6,50,000 in Nike contracted factories around the globe.
CONTu
Headquarters of Nike Key people:
Philip Knight (Chairman)
BUSINESS STRUCTURE
Operating Segments:
Footwear Apparel Equipment
Operating Regions:
U.S.A. Europe, Middle East and Africa (EMEA) Asia Pacific America
VISION STATEMENT
To bring inspiration and innovation to every athlete* in the world
( *If you have a body, you are an athlete Bill Bowerman, co-founder)
MISSION STATEMENT
The company aims to " lead in corporate citizenship through proactive programs that reflect caring for the world family of Nike, our teammates, our consumers, and those who provide services to Nike."
PRINCIPLE PRODUCTS
Began with long distance running shoes in 1963. Past 17 years: Air Jordan basketball shoes & carry bags. Wide range of shoes, apparel and equipment.
OTHER BRANDS
Cole Haan sells dress and casual footwear and accessories for men and women under the brand names of Cole Haan, g Series, and Bragano Nike Bauer Hockey, manufactures and distributes hockey ice skates, apparel and equipment. Hurley International, based in California, designs and distributes a line of action sports apparel for surfing, skateboarding and snowboarding, and youth lifestyle apparel and footwear. Converse, based in Massachusetts, designs and distributes athletic and casual footwear, apparel, and accessories.
Tiger Woods
Maria Sharapova
NIKE DOMINANCE
Comparison of Annual Revenue
10
9 8 7 6 5 4 3 2 1 0
Nike
Fila
Reebok
New Balance
Adidas
Corporation
CONTu
Aggressively target budget consumers through sales promotions and discounts on mid-priced shoes. Build a stronger relationship with moderately priced retailers through sales associates. Increase number of Nike outlet stores offering discounted merchandise. Create advertisements that showcase Nike s female shoes by featuring professional athletes and non-celebrity females who use Nike products. Develop a shoe named for a celebrity female athlete, such as Mia Hamm, comparable to Air Jordan s.
SWOT ANALYSIS
WEAKNESSES:
Lack of stores catering to the active females Poor employment practices at their international manufacturing sites giving a bad reputation Heavy dependency on footwear sales Issues with Footlocker
Customer use of company s products change from athletic purpose to a fashion item. General demand for clothing/footwear for leisure activities continues to increase. Growing e-commerce s positive effect since one of company s competitive advantages is Internet sales. Women demand for athletic footwear and clothing is increasing significantly.
Competitors which copy company's business model (high value branded product manufactured at a low cost) Adidas-Salomon AG, top European competitor. The impact of foreign currency fluctuation and interest rates, and political instability. Labor and political unrest in the suppliers countries. Cost orientated customers vs. company s higher-end market.
EVALUATION
Repeat surveys at six month intervals to gauge public perception. Measure growth of domestic shoe sales at six month intervals. Revisit with focus groups to record their opinions of improvements. Separately record sales of mid-priced shoes and women s shoes.
CONCLUSION
Nike is a very strong brand which covers maximum share of its industry, there are also some important points which are lacking in the industry. Nike company facing very tough competition with other popular brands so its very necessary for nike to promote & advertise their product very well.
REFERENCES
www.nikebiz.com www.marketing strategies of nike.com Nike Annual Reports (2008)
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