NIKE
STRATEGIC ANALYSIS: NIKE INC FALL 2012
U.S Based manufacturer of athletic shoes, apparel, and sports equipment.
Stock Symbol: NKE ( NYSE )
Founders: Bill Bowerman,Philip Knight
Market Cap: $30 Billion
Year established: 1964
Industry: Sportswear/equipment
Headquarters: Oregon
Slogan: Just do it!
Nike is the Ancient Greek goddess of victory
Introdu ction
Cole Haan ◦ Designs and distributes dress and casual footwear, apparel and accessories for men and women
Converse ◦ Offers a diverse Portfolio including premium lifestyle men’s and women’s footwear and apparel
Hurley International ◦ Designs and distributes a line of action sports apparel for surfing, skateboarding and snowboarding
Nike Golf ◦ Designs and markets golf equipment,apparel,balls,footwear,bags and accessories worldwide.
Umbro LTd
Brand Portfoli o
1964- Nike founded 1965- Annual sales reach $2000 1969-Annual sales close to $300,000 1988- Just Do It 1991- Michael Jordan leads Bulls to NBA Championship 1996- Tiger Woods Signs contract 2006- Apple and Nike team up
Brief History
Mission To Bring Inspiration and innovation to every athlete in the world.
Vision At Nike, our vision is to remain the leader in our industry. We will continue to produce the quality products that we have provided in the past. Most importantly, we will continue to meet the ever-changing needs of our customers, through product innovation.
Mission and Vision
#1 Sportswear Company ◦ Most Popular Brand among top athletes
Brand for Trendy and Young Individuals Brand Ambassadors
◦ LeBron James ◦ Tiger Woods ◦ Mia Hamm
Innovation partnership with Apple+ ◦ Ipod nano andNike + Ipod sport kit
Customized Shoes Market Leader
Target Customer ◦ 18-35 males and females ◦ Those who balance sport and fashion
Compet itive Analysi s:
Direct Competitors ◦ Addidas ◦ Puma ◦ New Balance Uses product differentiation Known for technologically advanced products Price Leadership Location in over 160 countries
Compet itive Analysi s: Competitor s
Research Product and Diversific Developm ation ent Compet
Easy for History of itive new Analysi Child competiti s: Labor SWOT on to
Porters 5 Forces
Supply Chain ◦ Maximize profit margins with outsourcing
CSR and Sustainable Competitive Advantage ◦ Go Hand in Hand ◦ Hannah Jones- VP of Corporate Responsibility
New Business Model in 2010 ◦ Shift from traditional media to social media ◦ Nike will work with Athletes who demonstrate high ROI on social media websites
Busines s Model
Constant first-mover within industry Athlete Sponsorship ◦ Effective Marketing Campaign ◦ Famous Athletes
Marketi ng
Marketi ng
Philip Knight ◦ Co Founder & Chairman
Mark Parker ◦ President & CEO
Charlie Denson ◦ President of NIKE Brand
Hannah Jones ◦ VP of Sustainable Business & Innovation
Leaders hip & Orginiz ational Structur e
Flat Matrix Organization ◦ Employees report to project teams led by manager ◦ Allows for quicker decisions
Each brand has department ◦ Makes Independent Decisions ◦ Sub-Departments for project teams
Leaders hip & Orginiz ational Structur e
Market Cap $34.6 Billion Strong financial success over past decade ◦ Incremental success highlighted over past four years
Proven industry leader with financial decisions
Continuously outperforming companies financially
◦ Supportive industry resources
◦ S & P 500 Comparison ◦ Competitors
Rapid Growth in future years ◦ Liquidity measurements indicate unlikely to face financial difficulties in the near future
Finance s
Finance s
Rapid financial growth since 2008
S&P 500 Comparison
Finance s
Technology & Fashion Corporate Responsibility ◦ Enhance Nike’s Green Initiative Environmental conscious customers who enjoy outdoor sporting Eco-Friendly Collection
Entertainment Industry ◦ NET- Nike Entertainment Television Live Games Original Sport Shows Sport Films ESPN main competitor
Moving Forwar d
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