...Nike Inc. Strategic Analysis ----Eric Overview Nike, Inc. is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area, and is one of only two Fortune 500 companies headquartered in Oregon. It is one of the world's largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. The brand alone is valued at $10.7 billion, making it the most valuable brand among sports businesses. The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1971. The company takes its name from Nike (Greek Νίκη), the Greek goddess of victory. Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding, and subsidiaries including Hurley International and Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008, and previously owned Cole Haan and Umbro. In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Nike sponsors many high-profile...
Words: 2930 - Pages: 12
...sports sectors have began to see the importance of strategic marketing and planning. Researchers have said that if strategic marketing activities are not improved sports would not be able to endure the competition from the entertainment industry. This purpose of research is to: (A) Evaluate the conditions of the Marketing environment of Nike INC as a sports equipment company (B) Evaluate the recourse capability of Nike INC using appropriate analytical tools, highlighting its thresholds and unique resources and core competences (C) Evaluate the strategic fit of Nike INC using the analysis gather highlighting its strength and weakness. Company’s Profile. Nike INC is a sport Equipment company, It was founded on the 25th of February 1964 by Bill Bowerman as at then it was known as Blue Ribbon Sports. Its named was official changed on the 30th May 1978 to Nike INC. It is said that Bill Bowerman developed his interest in starting up a business while in Stanford. He believed his business would grow because as at then most Sport Shoes companies spent a fortune on labour by cost by manufacturing their Athletic Sports Footwear in countries like the USA were labour cost were high. He was convinced that by out sourcing production to Japan where labour is cheaper, Blue Ribbon prices would be cheaper than its contributor and thus it break into the Athletic Foot Ware industry and this was the beginning of the company which later became Nike INC. Nice INC logo is an image associated with...
Words: 2896 - Pages: 12
...internal and external elements of their marketplace. Companies use a SWOT Analysis to establish the performance of the markets environment. The company will analyze consumer and competitor’s behaviors, trends, strengths and weaknesses in the market. Performing an environmental scanning and SWOT Analysis is vital to an organization’s success. SWOT Analysis A) give a detailed assessment of the opportunities, trends, and consumer existing in their market environment. B) Establishes an awareness of their markets environment so that their company can increase the strategic planning and decision-making process. (U.S. Department of Health and Human Services, n.d.). C) Establish the internal resources needed to achieve their organizational goals and objectives. D) Establish the vision and strengths to identify the companies’ strengths, weaknesses, opportunities, and threats. (CPS Human Resource Services, 2007). To show the importance of environmental scanning and the competitive advantages that could arrive from using this assessment tool, this paper will conduct an environmental scan on Nike Inc., and A.O. Smith Water Products Company. The environmental scans of these corporations will a) examine how Nike Inc. and A.O Water Products Company create value and sustain their competitive advantage through business strategy. B) Analyze the measurement guidelines that both companies use to verify their strategic effectiveness. C) Examine the effectiveness of both companies measurements...
Words: 1931 - Pages: 8
...technology. 2) Acquiring different domestic and global partnerships and acquisitions. To establish and sustain the success they have already achieved, the business leaders at A.O. Smith implemented a vision that would allow their organization “to be the global leader in applying innovative technology and energy-efficient solutions that provide comfort and convenience to life” (A.O. Smith, 2008, para 1). A.O. Smith vision have allowed their organization to net annual sales of $1.49 Billion (2010) and $1.71 Billion (2011) with earnings of $57.3 million and $111.2 million in 2010 and 2011 in succession (A.O. Smith, 2011). A.O. Smith creates value and sustains their competitive advantage in their market environment by focusing on the following strategic initiatives: Develop and introduce a consistent stream of new and innovative residential and commercial boilers (steam, tank less, etc.), motors (electrical, conventional), and hybrid heaters (solar heaters, water heaters, gas heaters). Acquire partnerships and acquisitions in different foreign markets to increase their product awareness, consumer/investor base, sales, and profits. Continual delivery of quality products and customer service (product warranties) at a reasonably affordable price. Offering different contractor rewards,...
Words: 1453 - Pages: 6
...LEADER : Dr.Vidu Soni MODULE LEADER : Dr.Vidu Soni MODULE NUMBER : MBA7002 MODULE NUMBER : MBA7002 MODULE NAME : Strategic Management MODULE NAME : Strategic Management CARDIFF ROLL NO. : st 20076710 CARDIFF ROLL NO. : st 20076710 BATCH : CMBA’4 BATCH : CMBA’4 ROLL NO. : 1423 ROLL NO. : 1423 STUDENT NAME : DIVYESH KUMAR STUDENT NAME : DIVYESH KUMAR N I K E N I K E Table of Contents Chapter 1…………………………………………………………………...….3 Introduction…….………………………………………………………………...4 Nike’s Journey…….……………………………………………………………...5 Financial Overview…….…………………………………………..……………...6 Chapter 2…………………………………………………………………...….7 Internal & External Environment Analysis…………..……………………………….8 SWOT Analysis………………………………………………………….…….….9 Challenges faced by Nike………………………………………………………….11 Strategic Implemented for Rectification………………………………………….….13 Chapter 3…………………………………………………………………..….16 Leadership Hierarchy……………………………………………………..…...….17 Chapter 4…………………………………………………………….…….….21 Nike Core Competencies…………………………………………………..………22 Value Chain Analysis……………………………………………….…………….24 Chapter 5………………………………………………………………….…..26 Cooperate Governance……………………………………………………………27 BIBLIOGRAPHY……………………………..………………………….….30 C C hapter hapter 1 1 Introduction “Everything you need is already inside. Just do it” * Bill Bowerman (Fabrega, n.d.) “NIKE”, one of the most synonymous names with the sporting world, was initially established as Blue Ribbon Shoes in 1964. The...
Words: 5966 - Pages: 24
...Business Model and Strategic Plan Part II: SWOTT Analysis Heather M. Weides BUS/475 March 30, 2015 University of Phoenix Garold Cole Business Model and Strategic Plan Part II: SWOTT Analysis The Nike Adjust will require a new division of Nike, Inc. to be formed which will provide customer focus specifically for those in need of the new product. The mission, vision and values of the Nike Adjust division will mirror and expand on Nike, Inc.’s current mission, vision and overall values while also adding to them. The specific mission statement of the Adjust division will be: Bring inspiration and hope to every individual in need of foot health help by providing the product necessary for them to become the athlete Nike, Inc. believes they all are. As with any new organization or division, a proper SWOTT analysis of Nike and the Nike Adjust has been completed. The analysis looks at several different areas including economic and legal and regulatory forces and trends as well as the Nike supply chain. SWOTT Analysis of Nike, Inc. In business, there is a strategic aspect used known as the SWOTT analysis. This analysis allows the organization to analyze the strengths, weaknesses, opportunities, threats, and trends of the business. Generally, the strengths and weaknesses will come from internal factors, whereas opportunities, threats, and trends seem to come from more external factors. Strengths For example, with the new Nike Adjust, there are many strengths this new...
Words: 1851 - Pages: 8
...Strategic Planning Strategic planning is something the Nike has been something that Nike has put much more emphasis on during the last decade. They realize that by planning well, they can produce higher quality products while improving their bottom line. Nike’s Strategic Planning team establishes a strategic business planning process, authors our one and three year strategic and business plans, and leads transformational initiatives in collaboration with cross-functional teams. Strategic Planning teams are embedded at the global corporate level and throughout their business units. This team frames complex and ambiguous issues, conducts consumer, competitive, and market analyses, fields research, creates financial models, and develops action plans (Nikebiz.com, 2010). One example of this is Nike's move to combine its reputation in high-performance athletic footwear with the iPod's meteoric success. In 2006, the company, which accounts for the largest share of running shoes sold in the United States, teamed up with Apple to launch Nike+: a digital sports kit comprising a sensor that attaches to your running shoe and a wireless receiver that connects to your iPod. As you jog and listen to your favorite music, the sensor tracks your speed and distance and the calories you've burned, and transmits that information to your iPod in real time. Back at your computer, you can upload your data to nikeplus.com, which stores your information and provides a user-friendly interface that...
Words: 1770 - Pages: 8
...Case Study Analysis on Nike Corporation sachin bakshi Uploaded by Sachin Bakshi top 0.5% 5,126 Download DOCX Case Study Analysis on Nike Corporation 1. Introduction History Nike is a major US footwear, clothing and sportswear supplier based in Beaverton, Oregon. The company operates in more than 160 countries and employs over 44000 people across six continents. Nike’s revenue total of $20.862 billion in 2011 with total equity of $9.843 billion. Today Nike is considered the world’s leading supplier of athletic shoes and apparel and one of the world’s most famous and strongest brands. The company was founded in 1964 as a footwear distributor Blue Ribbon Sports by Bill Bowerman and Phil Knight (middle-distance runner from Portland). Initially, the company operated as a distributor for Onitsuka Tiger, the Japanese shoe maker. Most of the sales were made out of Knight ’s automobile. In 1967 the first retail store was opened. In 1972 the jump was made to manufacturing company’s own brand of athletic shoes and the “Swoosh” brand mark was created. The first self- manufactured company’s shoes used Bowerman’s “waffle” design. They became extremely popular among the runners: they had special waffle-type nubs for traction and at the same time they were lighter than traditional athletic shoes. In 1979 Nike Air technology was successfully launched and by 1980 the company already attained 50% of national athletic shoe market. In 1982 Nike started to...
Words: 689 - Pages: 3
...1.5 Dropbox –Nike Marketing Analysis MKTG 530 Tori Kern Indiana Wesleyan University 1.5 Dropbox – Nike Marketing Analysis Nike Incorporated is one of the world’s leading innovators in athletic footwear, apparel, equipment and accessories (Nike.com, 2014). Nike will design, develop and market all of the above as well as marketing of apparel with licensed professional and college team logos ("IWU Jackson Library Databases," n.d.). Nike can and will clothe and shoe one’s entire family. Nike Incorporated began in 1968 and is now headquartered out of Beaverton, Oregon. Nike Inc. wholly owns affiliates such as Converse Incorporated, Hurley International, LLC and Nike Golf (Nike, Inc., n.d.). Converse is considered and reported as a separate segment while Hurley and Nike Golf are part of the financial reports for the Nike trademark. There is also the Jordan Brand. The Jordan Brand began in 1997and offers performance and lifestyle products. The Jordan Brand offers premium brand footwear, apparel and accessories inspired by the legend himself, Michael Jordan. The Nike Company has roughly 48,000 employees worldwide and operates in more than 170 countries (Global Data, December 2013). From when Nike began to the current status there are opportunities for Nike to improve on and to achieve goals. There will always be threats against the Nike Company that will try to distract or keep them from achieving goals. For a marketing standpoint it is important to identify those threats...
Words: 887 - Pages: 4
...in athletic products is Nike, Inc. It is popular for its athletic footwear, equipment, accessories and apparel. Nike’s mission: “To bring inspiration and innovation to every athlete* in the world” (Nike, Inc., 2011). Two visionary men, by the names of Bill Bowerman (Nike’s co-founder) and Philip H. Knight (Chairman of the Board of Directors), set out to revolutionize athletic footwear which later redefined the industry. Bowerman and Knight were first a partnership under the name, Blue Ribbon Sport. The goal of Nike, Inc. was to distribute Japanese quality shoes at a low-cost to America. As of 2000, over 40% of Nike’s sales come from athletic apparel, sports equipment, and subsidiary ventures. It dominates the athletic footwear industry in the global market share by 33%. It has over 20,000 retailers that includes Nike factory stores, Nike stores, NikeTowns, Cole Haan stores, as well as its internet-based Web sites (Enderle, Hirsch, Micka, Saving, Shah, & Szerwinski, 2000) . Planning Functions Considering the mass size of Nike’s organization, maintaining traditional and non-traditional distribution channels are controlled by its planning functions. Management directors and independent directors (Enderle, Hirsch, Saving, Shah, & Szerwinski, 2000). In this study, it analyzes the influence of legal issues, ethical climate, and corporate social philanthropic responsibilities. It also includes three factors that influence the company’s strategic, tactical, operational, and...
Words: 1118 - Pages: 5
...Monique Giron MGT/498 September 25, 2012 Robert Jenkins Ethics Ethics are a set of values subjected to analysis based on morals varying by each individual’s belief systems. Moral factors are represented differently given the nature and personal beliefs of human beings involved in certain social settings or working environments. Ethics deal with a person’s values, beliefs, virtues, and relevance of duties in an organization or working environment. When ethics are subjected to analysis the relevance of behaving ethically or unethically differ according to moral reasoning set by a person’s background or cultural upbringing. For the discussion on ethics details will explain the role of ethics and social responsibility in developing a strategic plan while considering stakeholder needs and agendas. Further along in the ethics discussion will include one example of a company overstepping ethical boundaries for stakeholder agendas and what types of preventative measures could be taken to avoid this type of situation. The relationship of ethics in a social setting can require strategic planning based on the responsibilities an organization sets for employees providing different components in a social setting. The strategic responsibility in developing a strategic plan is set into motion by strong leadership in management that should provide a guideline for a strategic management process. Role of Ethics and Social Responsibilities The roles of ethics based on a person’s belief...
Words: 903 - Pages: 4
...http://essays24.com/Business/Strategy-Ikea/16542.html Nike was established in 1972 by Bill Bowerman and Phil Knight with a mission to bring innovation and inspiration to every athlete in the world. The company started out as an American based footware distributor and evolved globally overtime to include not only footwear, but also apparel and equipment. Nike is one of the most recognized brands in the world and many are extremely familiar with their tag line “Just Do It”. Nike has capitalized on first mover advantage over the years and led the market in innovation. Nike competes in a saturated market with many traditional and potential competitors. To maintain future success Nike needs to focus on new strategies. Nike, who also owns Hurley, Converse, Bauer, and Umbro has several traditional competitors including Reebok, Adidas, UnderArmor, New Balance and Puma. Any company that produces athletic footwear or athletic apparel is a competitor to Nike. Nike also sells sunglasses and fitness equipment. Nike also faces potential competition with other shoe or apparel manufacturers. Sketchers had traditionally produced more fashionable everyday footware but has been extremely focused in the last few years on athletic footware. Their Shaper brand is now widely popular for consumers who like to walk for exercise and their cross-training and running shoes are gaining popularity. It takes little effort for a current shoe manufacturer to change designs and molds to make new...
Words: 1178 - Pages: 5
...Dunning Environmental Scan Paper A strategic plan helps a company excel during good times and maneuver through tough times. However, having a plan does not always determine the direction the company will go, the strategic plan is more like a map or GPS for the company. There are tons of other variables that drive a company. For instance, having great internal and external environments play a role on how the company will progress. The internal environment entails employees, management, the work culture/mission, and ethics. These components help make or break a company’s morale. If your company’s environment is unhealthy, then it is very possible the strategic plans that would be implemented improperly. The external environment is very important in a company as well, these are variables that occur outside the companies facilities that alter the company’s plans. Companies take their environments’ very seriously, there is a process call environmental scanning which, is an analysis of a company’s internal and external environments. Two companies that were recently researched using an environmental scan were Time Warner Cable and Nike. After an environmental scan it is possible to analyze the competitive advantage of Time Warner Cable and Nike. While, analyzing the competitive advantage, it is possible to see the value and effectiveness of Time Warner Cable and Nike’s business strategies. These two companies are in different industries; Nike being a global shoes and apparel company...
Words: 1249 - Pages: 5
...Situational Analysis Background to the case • In 1964 Nike Company was started. The company started importing Tiger shoes from Japan • In 1970, the demand for Nike shoes increased and the company decided to develop its own shoe manufacture. • In 1975, Nike shifted its operations from Japan to Korean and Taiwan were production costs were very low • In 1980, the company become profitable and at the same time faced a stiff competition from Reebok. The company’s market share dropped as a result of the competition. • In late 1980s, the Nike invested heavily in research and development to bring back the glory of the company. • In 1990s the company embarked on aggressive advertising, promotion and sponsorship and thus diversified into wide range of products to meet the international demands. • By 2007, Nike was the biggest sports fitness company in the world with a truly global spread of sales. Question 1 What knowledge has Nike acquired over the years? Use the definition of knowledge to move beyond the obvious This section is focused on knowledge acquisition and knowledge development has acquired over the years since its inception. According lynch (2006), knowledge is a fluid of mix of framed experience, values, contextual information and expert insight that provides a framework for evaluating and incorporating new experiences and information. It originates and is applied in the minds of knowers. In organisations like Nike, it often...
Words: 2887 - Pages: 12
...Globalisation NIKE – just do it Introduction Nike, Inc. is an incorporated company that designs, develops and markets worldwide athletic footwear, apparel, equipment and accessories. Nike is the biggest seller of athletic footwear and athletic apparel in the world and creates designs for men, women and children. Nike employs both traditional and non-traditional distribution channels in almost 200 countries with primary market regions in the United States, Europe, Asia Pacific, and the Americas. Nike has some 20,000 retailers worldwide including Nike factory stores, Nike stores, Nike Towns, Cole Haan stores and Web sites which sell Nike's sports and leisure products. Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding, and subsidiaries including Cole Haan, Hurley International and Converse. Nike accounts for 33% of the global market share in the athletic footwear industry. Nike sponsors many high profile athletes and sports teams around the world with the highly recognized trademarks of Just do it (www.nike.co.uk). GLOBALISATION: Globalisation is defined as the micro- phenomenon where there are a free flow of capital efficiency, technology and other factors of production which promote world welfare in its strides. (Nande and Dias, 2007.,p.2) KEY DRIVERS OF GLOBLISATION: there are three main factors which motivate the globalisation of markets and production which are explained as under: Falling barriers to trade...
Words: 4492 - Pages: 18
