SHORT CASE SUMMARY Nike, Inc. (503-671-6453, www.nike.com) is the worlds #1 athletic shoe and apparel seller. Nike currently employs 20,700 employees, with total sales of $8.78 billion. Nike and the athletic shoe industry have evolved into one of the most competitive market in recent years. But, analysts believe that athletic shoe sales will slow down over the next few years. The slowdown will come with the change in consumer trends. For instance, the younger market is beginning to buy more casual shoes and work boots. Another reason for the slowdown is that people are buying more medium priced athletic shoes and not going for the high price brand name shoes. As a result, this is bringing Nike a lot more competition to surpass. In order for Nike to remain on top of the athletic shoe industry they must establish an exceptional global strategy. If Nike penetrates the global market successfully than this will give the company an overall competitive advantage. Nike doesn't only sell athletic shoes, but a wide variety of sporting goods and clothing. They also design, develop, and market high quality active sports apparel, equipment, and accessory products. Their huge lines of products are designed for just about every sport in existence. Their products are made for men, women, and children of all ages. Nike has 20,000 retail accounts throughout the U. S. using independent distributors and also has contracts with 110 other countries. The company also has agreements with Internet companies and subsidiaries. Nike, Inc. has many retail outlets around the world, including their famous outlet "NIKETOWN" located in major cities. "NIKETOWN" gives customers the experience to become more educated on the company's goals and objectives for their products. The store educates its customer while at same time entertaining them too. This store gives customers a chance to become more brand loyal to Nike, Inc. Over the years Nike has gained an enormous amount of consumer awareness that they have eliminated the company name from all other products. The "swoosh" logo is automatically associated with the company name by just about anyone in the world. The meaning for Nike has lived up to the company's expectations. Nike means "the goddess of victory," which is exactly what the company has had since its creation. HISTORY A competitive runner, Ph...
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...This is a major part of Nike's corporate culture, which then trickles down to Nike's management styles. Nike lets manager's keep lines of communication open and lets them determine their own decision making. The company also offers their employees something called LifeTrek. This is a benefit and compensation program that gives their employees a sense caring and trust. THE FUTURE With the increase in competition and limit of growth the U.S. athletic shoe industry, Nike is still slated to be a major leader in the market. The advertising and innovative marketing in the industry should still leave it extremely competitive. The only problem that Nike worries about are customers becoming less brand-loyal and buying cheaper athletic shoe brands. Nike is trying to make the point that it is worth spending more money on better quality made shoe, than buying a cheap shoe that will only last a little while. One major area that brings unlimited opportunities to Nike is the international market. In the United Sates, there are 4 people for every pair of Nikes, France has 11, Japan has 50, and China has 11,821. These figures show that the greatest growth for Nike is overseas.
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Executive Summary Introduction Kimi Ford, a portfolio manager at NorthPoint Group, a mutual-fund management firm, was considering buying shares in the fund she manages, the NorthPoint Large-Cap Fund, with an emphasis on value investing. Ford held an analysts’ meeting to disclose its fiscal-year 2001 results and, most importantly, to communicate a strategy for revitalizing the company. Nike has maintained revenue of about $9 billion since 1997. However, its net income had fallen from almost $800 million to $580 million. Moreover, Nike’s market share in U.S. athletic shoes has fallen from 48% in 1997 to 42% in 2000.
One thing I like about Nike is how accessible it is. You can find Nike products just about anywhere such as Nike outlets, Dicks Sporting Goods, Khols, Macy and other big department stores, as well as online. Some companies don’t make it as easy to find and buy their products which can be a struggle. I hate when I’m in need of a certain product but companies limit their access, and I can’t get what I need when I need it. Nike makes it easy to find and buy their products at any
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
A Greek would say, "When we go to battle and win, we say it is Nike." According to Greek Mythology, The Nike was the winged goddess of victory. Daughter of the titan Pallas and the river Styx, Nike sat at the side of the omnipotent Zeus for the duration of his plight with the titans. The goddess Nike came to be an everlasting symbol of victory and dominance on the battlefields of ancient Greece. In light of her conquests, a popular footwear company of the 20th century designed products in her name to push new levels of achievement in athletes worldwide. The Swoosh logo at the side of each shoe is intended to represent the wing of the Greek Goddess Nike. The vibrant spirit of this ancient goddess has bridged the gap between ancient mythology and modern technology, and manifested itself through the most successful shoe company of all time.
Consumers must be aware of the changes that might occur in Nike through media and social awareness
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.
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.
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.
which led retailers to use the Nike brand to attract customers to their stores. Nike gained
The marketing goals are: Increase customer retention, Increase eCommerce Sales, Increase our Community Involvement. The first goal specifically works towards reaching 60% repeat sales through different promotional strategies like emotional marketing and sponsoring different professional athletes. Customer retention is extremely important to maintain Nike’s market leader position. Increasing eCommerce is a major focus for Nike. Last year we were able to increase our eCommerce sales by a profitable 51%. Our second goal is to continue this trend by increasing online sales by 50% every year for the next four years. It is our belief that doing so will solidify Nike as a leader in the online athletic market. Nike truly believes that sport can change
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”.
...fected by print advertising even if they don’t realize it. Nike uses all different forms of advertising to appeal to all audiences.
Nike is the number one innovator in the world in athletic footwear, apparel, equipment, and accessories. This worldwide company operates in an extremely different organizational structure than other companies, such as Reebok and Adidas. Nike operates tremendous marketing strategies and develops inventive designs to inspire athletes around the world. This company is one of the largest suppliers in the world in athletic footwear and apparel, main producer of sports equipment, and making Nike the most valuable brand among sports companies. The task for Nike is to join diversity and inclusion to encourage ideas and innovation. Around the world, this company is a popular brand.
NIKE, Inc., along with its subsidiaries sells athletic footwear, apparel, equipment, and accessories for men, women, and kids worldwide. The company offers products in many different categories, some of which include basketball,
Nike was created around the late 50’s early 60’s(Page 3 Frisch, Aaron. The Story of Nike). The creator got the idea to make them because of a school project. It was about a business that they would run as they came out of highschool. His name was Phil Knight. It originated in Hillsboro Oregon. And this was the start of something great.