Stock symbol : NKE (NYSE)

Annual revenue : more than $19billion ( as of 2010)

Founders : Bill Bowerman & Philip Knight
Year established : 1964 (as Blue Ribbon Sports)
Industry : Sportswear/equipment
HQ : Beaverton, Oregon , USA
President/CEO : Mark Parker
Staff : 34,400 (as of 2010)
Products : Shoes, apparel and sports equipment
Slogan : Just Do It!
 Nike Nike
Logo as Logo as
at 1971 at 1985

Nike Current
Logo as Nike
at 1978 Logo
 Philip Knight
Co founder/ Chairman

Mark Parker
CEO/President

Alan Graf Jr. Timothy Cook John Connors

Fedex Apple Inc Ignition Partners
Cole Haan, designs and distributes dress and
casual footwear, apparel, and accessories for
men and women

Converse Inc., offers a diverse portfolio

including premium lifestyle men's and
women's footwear and apparel.

Hurley International LLC., designs and

distributes a line of action sports apparel for
surfing, skateboarding and snowboarding,
and youth lifestyle apparel and footwear

NIKE Golf, designs and markets golf

equipment, apparel, balls, footwear, bags and
accessories worldwide.

Umbro.Ltd., designs, distributes, and

licenses athletic and casual footwear, apparel
and equipment, primarily for the sport of
football (soccer)
 Strength Weakness Opportunities Threat
Nike Inc is listed in The income of the The opportunity to Financial crisis may
NYSE business is still heavily develop products such as lead to job shortages
Strong marketing dependent upon its sport wear, sunglasses in a number of
strategy share of the footwear and jewelry Nikes worldwide
Operates a chain of market. Producing sportswear subsidiaries
Niketown retails Contracts overseas products from
companies that apply manufacturing waste
Nike is exposed to
Has factories in the international
China, Vietnam, non-transparent and Nike is a fashion brand.
inadequate labor Consumers that wear
nature of trade.
Malaysia The market for sports
regulations, involving Nike product do not
Contracts with 700 child labor shoes and garments
always buy it to
shops worldwide is very competitive
participate in sport
 Product Strategy Pricing Strategy
- Several lines of athletic shoes and apparel - Uses market skimming pricing strategy
- Product mix width consist of athletic
- Product line pricing
shoes , apparel and sports equipment

4Ps
Promotion Strategy Place Strategy
- Direct marketing (through e-shop) - Sells product in international market
through independent distributors, licenses,
- Public relations (massive sponsorship)
subsidiaries
- Mass Advertising
- Sells product in approximately 110
countries around the world
 Threat of
New Entry
(Moderate)

Threat of
Rivalry
Substitutes
(High)
(Moderate)

Bargaining Bargaining
Power of Power of
Suppliers Buyer
(Low) (High)
Nike has historically had some of the most
cutting-edge products on the market.

For example, Nike teamed up with Apple and

launched the Nike + iPod line of products.

This technology allows consumers to connect

their iPod devices to sensors inside the shoes to
record time, distance, pace, and calories burned.
Due to cheap labor in foreign countries, Nike outsources virtually
all production to other areas of the world.

This behavior has become an industry standard, with all major

competitors also outsourcing production.

Consequently, no competitor has a major advantage in

manufacturing
One of Nikes most revolutionary technologies comes through its
footwear cushioning.

Nike has patents on four cushioning technologies:

Nike Air / Nike Zoom / Nike Air Max / Nike Shox

Although some of Nikes earlier patents are beginning to expire, they still
hold patents on the newer technologies
Nike is the single largest producer of athletic footwear and apparel,
allowing them large cost advantages over competition

Larger companies tend to have major economies of scale over smaller

companies in areas such as distribution and marketing.

Nike is so large that many of the companys suppliers depend on Nike to

remain in business.
Source : Nike Annual Report (2011)
- Contributes for the study of rural children

- Innovates its product constantly to make it eco-friendly

- Offers scholarship to children in sports

- Member of Fair Labour Association (FLA) & Global Alliance

- Funds number of NGOs as part of contribution towards society

Formulating a strategic plan for the corporations future is key in
determining the all around goals of the company.

Nike, with their marketing, innovation, technological

advancements, and equitable manufacturing departments, has
created an all round dominant strategic plan.

Nike has raised their competitive advantage to the highest form

possible.
http://www.youtube.com/watch?v=ijTwZNUBhcI

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