This paper will discuss Nike, Inc., a publicly traded corporation within the sporting goods industry. It will identify two segments of the general environment that would rank the highest in their influence on Nike, Inc. as well as assess how these segments affect Nike, Inc. and the sporting goods industry in which it operates. In addition, two of the five forces of competition discussed in the text will be identified based on an analysis of which two are the most significant for Nike, Inc. How well Nike, Inc. has addressed these two forces in the most recent past will be discussed as well as how Nike, Inc. might improve their ability to address these forces successfully in the near future. As the paper progresses opinions will be stated based on an assessment of external threats affecting Nike, Inc. and what opportunities are available to them. How Nike, Inc. should deal with the most serious threat and the greatest opportunities available to them will be provided based on opinions with justifications to support those opinions. Opinions will also be stated based on an assessment of Nike Inc.’s greatest strengths and most significant weaknesses while also providing a strategy for them to utilize in order to take maximum advantage of their known strengths as well as a strategy to help mitigate any significant weaknesses they might find themselves experiencing. This paper will wrap up by determining what Nike, Inc.’s resources, capabilities and core competencies are as well as analyze their value chain in order to determine where they can create value using aforementioned resources, capabilities and core competencies. Segments of the general environment and their influences on Nike, Inc. Nike, Inc. is a global leader and innovato... ... middle of paper ... ...vantage lies within their ability to research and develop innovative products and to market them to their full potential. Nike, Inc. makes use of their resources, capabilities and core competencies better than any other company within the industry and thus remains highly competitive, profitable and preferred. “Nike owns and controls just two elements: product development and its branded retail stores. Both serve Nike’s strategic propose: by owning and operating its branded stores the firm obtains valuable feedback directly from its customers which drive new product development” (David W. Crain, Stan Abraham, (2008)). Nike, Inc. can create value through their human resources and their product innovation. Nike, Inc.’s value chain starts with product development through innovation, moves onto production and manufacturing, marketing and then ends with the customers.
In the history of business, there has been a clear record of industry heads finding something or someone as a mainstay and bedrock for their respective companies or corporations; there is often a chief product that keeps many businesses afloat, even in the rough times. Apple found it's own in 2001 with the iPod. McDonald's has had the Big Mac since the late 1960s. Nike, however, found their goldmine in a person with Michael Jordan. Walter LaFeber's Michael Jordan and the New Global Capitalism tells the paints the picture of the rise of young Michael Jordan from his middle-class family in racist North Carolina up through college and into the NBA where he becomes an international sports icon. It tells the story of how Jordan catches the eye of Nike's ambitious co-founder and CEO, Phil Knight, and how he was transformed from a young, rebellious black hoopster into the face of a multi-billion dollar transnational corporation while stretching its touch all of the way to the far reaches of Asia. LeFeber's book also delves into the darker issues and topics addressing Jordan and Nike, such as race and sports and how they played a part during scandals that surrounded MJ off of the court along with the growth of Nike abroad and their dealing with technological changes in manufacturing while facing criticism for their labor practices.
Since its creation, Nike has proven itself as a popular brand and it has created niches by selling products such as footwear, apparels and various types of sports equipment. This paper will attempt to trace the product development of Nike shoes from its origins in conception and design to the manufacturing and production process located in contract factories in developing countries to advertising and marketing of Nike as a cultural commodity and finally, the retailing of the footwear around the world.
"Getting and spending" has eclipsed family, ethnicity, even religion as a defining matrix. That doesn't mean that those other defining systems have disappeared, but that an increasing number of young people around the world will give more of their loyalty to Nike than to creeds of blood, race, or belief. This is not entirely a bad thing, since a lust for upscale branding isn't likely to drive many people to war, but it is, to say the least, far from inspiring.
As Nike is an international company that has their product selling worldwide, they have countless of competitors, including many domestic local firm. However, not all of these companies have the power to compete with Nike, only a few international companies are Nike¡¦s major competitors, for instance, Adidas and Reebok.
Nike is a worldwide known business that many people around the globe are attracted to purchase. They make a variety of products ranging from shoes and clothes to sports gear, sports products, and many different accessories. Nike is designed for everyone ranging from infants to elderly. Because of their range of age for products, this makes them a huge competitor. Being able to appeal to all ages and styles of people.
Nike Incorporated is the number one leading sportswear and equipment provider in the world. They manufacture anything from casual clothes to sports equipment, shoes to socks, and basketballs to golf balls. As a result of its massive success, Nike employs nearly 30,000 people worldwide while manufacturing in 700 shops around the globe and has 45 offices outside the United States. Its extensive reach into the global market has Nike producing more exclusive products than any other manufacturer in the world. Nike’s headquarters is located in the metropolitan area of Portland, Oregon.
Under Amour Company ventured into a market segment that was overcrowded, it had thousands of companies that competed against each other. Out of the many companies involved in the trade, the two most formidable threats seemed to be orchestrated by Nike and Adidas. These are two giant sports apparel and footwear, which pride themselves as having been long term veterans in the industry. Nike in particular was christened as the ultimate shoe and athletic apparel company with revenues of $18.6 billion, net income of $1.9 billion and more than thirty two thousand employees globally in the year 2008. This makes it the largest athletic shoe and apparel seller in the world. This company has seen major expansions in outlets throughout the world over the years. Adidas on its part has managed to build a powerful brand through its technological innovations and aggressive marketing where they spend up to thirteen per cent of their revenue besides offering high quality services. These scenarios seem to present Under Armour with a massive competitive disadvantage.
Many global companies like Nike, Inc. are seen as role models both in the market place as well as in society in large. That is why they are expected to act responsibly in their dealings with humanity and the natural world. Nike benefits from the global sourcing opportunities, therefore areas such as production and logistics have been outsourced to partner companies in low-wage countries like China, Vietnam, Indonesia and Thailand. As a result the company is limited nowadays to its core competencies of Design and Marketing.
The following content provided will include information regarding Nikes Inc. cash management strategies, which will include more in depth information from the previous group paper. In addition, working capital recommendations will be provided to senior management base on next year’s in the pro-forma financial statements.
Nike’s goal is to remain unique and different from others in terms of the items offered on the market. Arguably, Nike belongs to a monopolistically competitive market as there only a few organizations with the ability to regulate the amount charged for their product which means they cannot make their prices high as this is likely to make customers move on to other available choices (Nike, Inc., 2012). However, Nike can find a balance between the prices to charge for their products and remaining competitive with other companies in the industry. Nike has formed a distinction between the appearance and performance of their footwear and that of their competitors. Although products are differentiated from other companies, they still influence each other because they are items of the same
In this Case Study Analyses, an objective SWOT Analyses will be done to help identify potential strengths, weaknesses, opportunities, and threats within the Nike Corporation.
Nike’s positioning in the market has more of a mass appeal compared to their main competitor Adidas who strive to make products for elite athletes. The positioning strategy for Nike is currently working at a satisfactory level as Nikes global annual sales between 2013-2014 was reported as 27.8 billion (Statista, 2014) compared to Adidas’ 19.95 billion (Statista, 2014). The global market for sports apparel is expected to grow at a compound annual growth rate of 4% between 2012-2019, Nikes compound annual growth rate during 2010-2012 was 12.3% which is an excellent result as the brand’s growth was larger than the market as well as outgrowing Nike’s closest competitors Adidas, Puma and Asics (Forbes,
Consumers must be aware of the changes that might occur in Nike through media and social awareness
Nike’s Asian operations had previously continued to soar generating US$300 million in 1994 in revenues to a whopping US$1.2 billion in 1997. However based on the Asian economic crisis, this had adversely affected revenues, while regional layoffs were inevitable. Nike also performed well in the European market generating about US$2 billion in sales and a good growth momentum was expected, however, some parts of Europe were only slowly recovering from an economic downturn. In the Americas (Canada and the U.S.A.), Nike experienced a growth rate for several quarters. The U.S. alone generated approximately US$5 billion in sales. The Latin American market at this point was exposed to economic volatility; however Nike still saw them as a market with “great potential for the future”.
Nevertheless, Nike is an extremely diverse company with outstanding organizational structure, impressive marketing strategy, and innovative products. The organizational structure of the Nike Corporation helped them become a leading innovator for the world with creative apparels and shoes. Their intelligent marketing strategies assist them in advertising their products to motive their customers and sell them. Their innovative product motivates customers with great performance footwear and quality designs to take on any obstacles. The Nike Corporation discovers various ways to improve their organizational structure to inspire the world.