Technology Management in Manufacturing and Incremental marketing changes

Ravindu Phade C 34
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 Major

publicly traded clothing, footwear, sportswear, and equipment supplier based in the United States Headquartered near Beaverton, Oregon, in the Portland metropolitan area Revenue in excess of US$25 billion in its fiscal year 2012 Employs more than 34,400 people worldwide as of May 2013
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Shoes Running Basketball Soccer Sport-inspired urban shoes Childrens shoes

Miscellaneous Bags Socks Sports balls Eyewear Timepieces Apparels Bats Gloves Protective equipments

Originally known as Blue Ribbon Sports (BRS) Founded by University of Oregon track athlete Philip Knight and his coach Bill Bowerman in January 1964

Initially operated as a distributor for Japanese shoe maker Onitsuka Tiger (now ASICS)
Launched its own line of shoes branded as Nike in 1971

Marketing Nike is a marketing company Research & Development Nikes R & D lab evaluated as far & away the best in the industry. Large number of patents testimony to its commitment to R & D. Extensive SCM capabilities has attained competency in leveraging low cost countries like China & Vietnam as its manufacturing hub. Sources its products from 900 factories spread across 50 countries.
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Nikes distinctive competency lies in the area of marketing, particularity in the area of consumer brand awareness and brand power. While the reasons that Nike is successful in marketing products are numerous, this key distinctive competency towers over its competitors. As a result, Nikes market share is number-one in the athletic footwear industry. Catch phrases like, "Just Do It," and symbols like the Nike "Swoosh," couple with sports icons to serve as instant reminders of the Nike Empire.

Nike brand is the most valuable among sports businesses Of the company's $18.4 billion in revenues in 2009, 90% was attributable to merchandise emblazoned with either the Nike or Nike Golf logos. Nikes brand value is US$ 18.6 billion in 2012, comprising more than 52% of its enterprise value* 30th most powerful brand in the world, and the number one in its industry. Its nearest rival Adidas is ranked at distant 135, while Reebok is ranked at 408.

* source: Brand directory, 2012. 7

 Quality

Products Innovation Marketing

Constant

Aggressive

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Countries
Total Revenue
6.7

17.3

34.1

US Europe Middle East Africa

28.7
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Barriers to Imitation
Economies of scale

Shared distribution channels and efficient production reduces costs

Patents & copyrights

Nike has around 3775 patents in the sports shoes, apparels and the equipments domain e.g. Nike AIR technology, self lacing shoes, etc.
Innovation

Strong emphasis on R&D and product development through new designs(more than 300 designs a year) e.g. recycled polyester for jerseys
Brand reputation and Image

Celebrity endorsements & sponsorships of sports events

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 Responses

to substitution

Customization of footwear
Online customization of footwear

Aggressive advertising
Just Do It campaign

Mergers and Acquisition

Umbro, Converse, etc.

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Responses to Holdup
Multiple sourcing and Contracting Contract suppliers in China, Vietnam, Indonesia and Thailand; Argentina, Brazil, India, and Mexico Building relationships with complementors Tie up with Apple for the Nike + iPod sports kit Increase Bargaining power Just Do It advertising campaign Forward Vertical Integration Opened Discount stores in rural areas and flagship stores in urban areas Building Trust Improving working conditions through various programs
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 Responses

to Slack

Performance based incentives Pay dividends to the shareholders

Nike encourages outsiders to become part of

board, in order to avoid bias

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Transparency enables collaboration and collaboration is essential to build a sustainable company NIKE, INC.

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Thankyou

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