Nike Strategic Analysis 9 of ability reach their potential or to create business opportunities that set Nike apart from the competition and provide value for our shareholders.” The person that the vision is talking about in the vision statement is Bowerman. Good read. ‘By mid-1985, inventories had fallen to less than 10 million pairs of shoes from a peak of 22 million in late 1983. . As of 2017, over 60% of revenues came from footwear and over 28% in apparel. Another strength of Nike is that it is a global brand and its logo i.e. Indeed, Nike has continuously improved its operations management. The biggest strength of Nike is that it is an extremely competitive organization with its approach of “Just Do It” slogan for its brand epitomizing its attitude towards business. 6. 8. But there is … The, organization culture has thrived for a long time considering how it rewards imagination and, embraces diversity. Nike makes money by primarily selling footwear via wholesale customers that distribute the Nike brands across the globe. Course Hero, Inc. Strategic Analysis of Nike 4 Executive Summary Nike, previously known as Blue Ribbon Sports was created in 1962 by Phil Knight and Bill Bowerman (Pandey, 2017, p. 2). Adidas Strategic Analysis. Executive Summary: Constant innovation has been the byword for Nike's success.This case study analyses the ever-evolving marketing strategies adopted by Nike to become a … Not only does it own 48% of the American athletic footwear market, but its share of the basketball footwear market is at a staggering 96%! Another opportunity is for Nike to improve its product mix to attract more customers, especially non-athletes. During the recent years, the brand has made some strategic changes in its business model. 2.   Privacy Introduction; Nike is … Nike is the top athletic manufacturer in the world. The biggest strength of Nike is that it is an extremely competitive organization with its approach of “Just Do It” slogan for its brand epitomizing its attitude towards business. Organic Growth Strategy. Business segments in which Nike operates has a large number of local & national players. The corresponding intensive strategies grow Nike’s global sports shoes, apparel and equipment business. The brand has excellent marketing campaigns and, Recently, a former employee accused Nike of, Multiple female employees reported that they had complained to the HR but saw no action being taken from their part. One of the critical ingredients of Nike success is its ability to create demand for its products. Nike has set business plans through strate… I am guessing the presentation is for school? Sexual Harassment: Former female employees also pointed out that sexual harassment and misconduct was very common in the company. PGDM – B Group – 6 Avishek Singh 113Mohammad Shadab 129 Pratik Akerkar 139 Somjeet Dutta 152 1 2. Nike’s strengths are that the company is extremely competitive; the CEO of the company is often heard saying that business is a war without any bullets. Nike Case Analysis 717 Words | 3 Pages. Some even left their jobs. Besides, the company seeks visionaries, leaders, and achievers. finding a solution against these environmental issues. Strong brand image 2. The remaining comprised equipment and the Converse Brand. Abstract information on Nike's business diversification, deriving its key business segments and highlighting its major competitors 8. Nike Success. Nike- Strategic analysis 1. The following are the generic competitive strategies implemented in Nike’s combination strategy: 1. Multiple female employees reported that they had complained to the HR but saw no action being taken from their part. However, to grow faster internationally, this time the company has focused on the metropolitan cities. Gupta understands how to create and implement business strategies. Thus, Adidas and Nike have different marketing strategies in how both companies interactive with consumers online. Contents (Jump to) 1. Company: Nike  CEO: John Donahoe Year founded: 1964 Headquarter: Beaverton, Oregon, USA Number of Employees (FY2019): 76,700 Type: Public Ticker Symbol:  NKE Market Cap (Oct 2020): $198 Billion Annual Revenue (FY2020): $37.4 Billion  Profit | Net income (FY2020): $2.54 Billion, Products & Services:   Athlete wear | Apparel | Sports equipment | Leisure footwear | Accessories Competitors: Adidas | Puma | Anta | New Balance | Under Armour | Lululemon | ASICS | V. F. Corporation, Nike swoosh logo is inspired by the Greek goddess of victory, Nike. Nike leads the sales in the athletic footwear industry as it shows a, global market share of 33% (Brohi et al., 2016, 43). This component of the SWOT Analysis deals with the internal strategic factors that support business development and competitiveness. I am glad you liked our analysis. This has been the keynote of the Company’s growth strategy. The organization has been able to achieve, this through aggressive marketing, innovative products, and quality production. Culture At Nike, we believe that a brilliant, diverse and comprehensive employee This particular strategy appears to work well on generating responses not only to new product launches, but also to opportunities for online purchases, in-store purchases, and participation in Nike events. Strategic Management: Nike: SWOT Analysis Of Nike 1926 Words | 8 Pages. Your favorite Nikes might be made from forced labor. “All those companies that built a business on the back of Nike and Adidas are toast – there’s no way they can replace that [business],” explained a source to the Sunday Times. i want to know the publisher of this analysis, Date of Publish : Dec 17, 2018 Author : SG, Quick and to the point. This has led to better performance for Adidas. Some even left their jobs. Introduction. Porter’s Generic Business Strategies model- NIKE business strategy Description. This article was very interesting. The competitive strategy that Nike introduced at the end of the 1990's concentrates on honing the focus of our marketing strategies and product offerings through product differentiation. Thank you ! Contradicting Strategies: Nike pledged to shift all its facilities to 100% renewable energy with net-zero carbon emissions under the “Move to Zero” scheme. Results of Nike's new Customer Experience distribution strategy in place for over a year in a study by Euromonitor. Through the interviews, it was established that Nike did have a toxic working environment, where sexual misconduct was rampant. Hi Divya, Most of the information is from Nike’s annual report and few points have embedded hyperlinks for references. Here’s a detailed breakdown of Nike SWOT analysis. NIKE Part 1: Organizational Analysis 2/6/2013 NIKE Part 1: Organizational Analysis Table of Contents Executive Summary3 Overview and History4 Organizational Strategies and Innovation5 Organizational Design and Effectiveness6 Competitors7 Organizational Structure7. Also, Nike is in the industry which is by and large affected by the product life cycle which means that sometimes it’s very difficult for the company to respond to the fad timely. To stay on top of their competitive game, Nike focuses on product differentiation and cost leadership. Nike's Values 9. Several sporting teams are on the brink of collapse. The company’s primary goal was to dispense high-quality, low-cost Japanese athletic shoes to the American buyers. However, due to the success, Nike has gotten the company now provides athleisure wear as well. 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$19 billion in its fiscal year 2010 Employs more than 34,400 … Proactive strategies for this concern can lead to an improved brand image. Nike, Inc. is an American multinational corporation. Business Analysis-Nike's free workout apps are key to its high-end pricing strategy. It’s safe to say Nike’s at the top of its game right now. very grateful analysis. who wrote this article ? Best Buy Mission Statement, Vision Statement, Values & Culture, Deloitte: Mission Statement | Vision Statement| Values | Culture, Starbucks Mission Statement, Values, Principles, & Sustainability Goals, Uber: Mission Statement | Cultural Norms | Principles | Philosophy (2020), Amazon: Mission | Leadership Principles | Philosophy (2020), Nordstrom: Mission | Vision | Core Values (2020), Top 15 Netflix Competitors & Alternatives, Your favorite Nikes might be made from forced labor. It was found by, in the communities. The entire controversy has significantly affected the company’s image. Examples of Nike's Marketing - To learn how you can use Nike's Marketing strategy to grow your business, listen to this podcast episode 8. Strategy Analysis of the Nike Company. The global clothing apparel market is oligopolistic with for players Nike, adidas, H&M and Zara having a combined market share of 7.0%. Based on our understanding and analysis of Nike’s Strategy here are some recommendations for them: They can focus on the different parkour and aerobic product. However, both Adidas and Nike have a significant digital presence and impressive viral marketing strategies. NIKE, Inc. engages in the design, development, marketing, and sale of athletic footwear, apparel, accessories, equipment, and services. In addition, the organization has more than twenty thousand retailers, Nike stores, Nike factory shoes and websites that assist in selling the company’s leisure and sports products, (Brohi et al., 2016, p. 43). The company specializes in athletic wear, providing footwear, apparel, athletic equipment, and accessories. If the crisis discourages sporting events for longer, Nike’s losses can be catastrophic. Results of Nike's new Customer Experience distribution strategy in place for over a year in a study by Euromonitor. By Hilary George-Parkin. Xu, V. (2020, March 17). The pandemic has discouraged physical interaction and gathering with sporting events canceled or postponed. What sort of marketing strategy has Nike used to achieve and maintain this level of market dominance?. 7. In June 2017, Nike outlined a new strategy to drive growth into the coming decade, which it called Consumer Direct Offense. Bibliography.   Terms. Nike’s major competitors consist of companies such as Adidas, Under Armor, and Rebook. Save my name, email, and website in this browser for the next time I comment. market demand for fashionable apparel and athletic footwear will ensure that Nike stays on top. It can be said Nike has potentially implemented all the strategy to introduce new products. Jomo Kenyatta University of Agriculture and Technology, Strategic Analysis of Nike Company.docx - Strategic Analysis of Nike 1 STRATEGIC ANALYSIS OF NIKE Student\u2019s Name Course Instructor\u2019s Name. Rapid innovation processes 3. This type of strategy includes two or more of the generic strategies from Porter’s model. To stay on top of their competitive game, Nike focuses on product differentiation and cost leadership. Market analysis in the Marketing strategy of Nike – Business segments in which Nike operates has a large number of local & national players. The management employs strategic management components such as vision, environmental analysis, strategy creation, strategy implementation, and strategy assessment (Nike, Inc., 2009). 5. Copyright © 2021 Business Strategy Hub. iii. Thank you. The Nike brand was launched at the U.S. Olympic trials in 1972 and Steve Prefontaine became the first athlete to wear Nike shoes and advertise them(www.trizera.com). It’s to easy to understand and explain to others.. Thanks it will help me my upcoming presentation. 27 Recommendation In this report, we have analyse Nike’s different objectives along with Business strategy market strategy etc. 27 Recommendation In this report, we have analyse Nike’s different objectives along with Business strategy market strategy etc. Extensive global production and di… In the industry, Nike’s has maximum or main competition; direct competitors of the company include Adidas AG, Puma AG, and New Balance etc. From releasing new product lines to building new brands, to outsourcing, and establishing a global presence alone is an extraordinary achievement. This involves … Dominant Economic Features Analysis. The remaining comprised equipment and the Converse Brand. One of the critical ingredients of Nike success is its ability to create demand for its products. The CEO ensures that Nike will help to contribute. Did you find this article interesting? The following strengths are the most notable in the case of Nike Inc.: 1. SWOT Analysis of Nike… Nike is focused on its footwear business, which can be somewhat risky considering that market trends change and most companies sustain themselves through a product diversification strategy. However, new entrants required the huge amount for the capital; therefore, Nike has the maximum market share in the footwear industry (Reuters, 2016). Strategic Management; SWOT Analysis of Nike; SWOT Analysis of Nike . United States. Currently, Nike does not only, distribute and produce athletic shoes in all markets but also has over 40% of its total sales, derived from subsidiary ventures, sports equipment, and athletic apparel (Laplume, Petersen and, Pearce, 2016, p. 599). Through this SWOT analysis of Nike, you will be able to understand the business model of the brand. Figure 6: Michael Jordan advertising Jordan shoe. The management employs strategic management components such as vision, environmental analysis, strategy creation, strategy implementation, and strategy assessment (Nike, Inc., 2009). Secondly, Strategic Management 2019-20: Assessment 1 – Written Assignment (This assessment contributes 40% of the … Jump to top Search. I will also focus on the threats and opportunities that the Nike company is facing in the current business world. Nike is headquartered in Beaverton, Oregon, USA. Differentiation Strategy Nike incorporates a business level strategy that most resembles a differentiation strategy. The entire. In addition, we have the promotion, which is also known as the marketing communications While the strategy is great and welcomed, it contradicts Nike’s strategy that favors innovation over sustainability. In Nike, it is, all about ensuring that every person brings his passion and skills to a continually evolving and. Firstly, assessment task details and instructions 1500 ONLY. Lack of Diversification: Nike’s over-dependence on sporting apparel or lack of diversification is a major weakness. The major threat to Nike is the imitation that goes hand in hand in various markets which are affecting its revenues and businesses. Nike, Mission, Vision, Values, Principles Essay 704 Words | 3 Pages. This has greatly helped the managers to lay a plan for the organization and take it where they want it to be. But to achieve the reach required to scale its business, Nike’s distribution strategy had long-relied on third-party retailers to sell its products, even if the consumer experience offered by those partners diluted its brand. How Does Credit Karma Work and Make Money? The competitive strategy that Nike introduced at the end of the 1990's concentrates on honing the focus of our marketing strategies and product offerings through product differentiation. Nike products are sold is the retail stores because of their strategic location around the world. Let us start the Nike Marketing Mix & Strategy: Nike Product Strategy: Nike, Inc. is an American multinational corporation. The company’s primary goal was to dispense high-quality, low-cost Japanese athletic shoes to the American buyers. Nike makes money by primarily selling footwear via wholesale customers that distribute the Nike brands across the globe. The Washington Post. As of 2017, over 60% of revenues came from footwear and over 28% in apparel. The fiscal 2020 proved to be successful for Nike. Currently, Mark Parker is the CEO of Nike. Executive Summary: Constant innovation has been the byword for Nike's success.This case study analyses the ever-evolving marketing strategies adopted by Nike to become a global brand… 2. This type of strategy includes two or more of the generic strategies from Porter’s model. – SG. Figure 3: Graph Showing NBA Players Perform Better when Wearing Nike Sneaker, Figure 4: Converse and Hurley Logo Brands. The logo of Nike is instantly recognized by people anywhere in the world. Figure 2: Nike Advert Using Professional Athlete. ..................................................................................... Nike, previously known as Blue Ribbon Sports was created in 1962 by Phil Knight and. In addition, we have the promotion, which is also known as the marketing communications S.K. Nike has grown exponentially in the last decade. can i know the name? The company offers a place where people’s potentials are, explored, and boundaries are destroyed thereby pushing out edges of what is to be. Nike is, always on the look for people who have the ability to create, dream, think, and grow. Share your thoughts and experiences in the comments section below. Nike products are sold is the retail stores because of their strategic location around the world. Porter's 5 Forces . Executive Summary: The famous shoe Company with the swoosh logo has gone from strength to strength, since its inception in 1962, headquartered at Beaverton, Oregon to emerge as an industry leader – the most competitive sports and fitness company(www.nike.com). Lot of clarity in the format – the SWOT is explained. This particular strategy appears to work well on generating responses not only to new product launches, but also to opportunities for online purchases, in-store purchases, and participation in Nike … Knight called his first shoe Tiger and began allocation at path meet. Nike Inc.’s generic strategy (based on Michael Porter’s model) is appropriate for its diverse product lines, ensuring competitive advantage. With consumers under lockdown logging into Nike's workout apps … Although the brand is still in debt, the next few years look promising. … Thank you Gargi, I have been through business school not so long ago, so I can totally relate to you. All rights reserved | contact@bstrategyhub.com | Logo designed by Looka. In 2001, that number almost tripled, it became a 13 billion dollar business with 335 million shoes sold. https://bstrategyhub.com/swot-analysis-of-nike-nike-swot-analysis Nike’s Pricing and Business Strategy. It can be said Nike has potentially implemented all the strategy to introduce new products. Cost Leadership Strategy 2. It was a validation of a strategy that Nike prioritised three years ago, dubbing it “Consumer Direct Offense,” but the seeds of the approach go back almost a decade. Business Strategies Nike has a very clear cut business strategy and specific goals it wants to accomplish. References Nike's Strategy to Become the Leader in their Market. We realize that the team-mentality that captured the spirit of athletics in the late 1980's and early 1990's has been replaced by a sense of individualism. Nike’s Global Women’s Fitness Business: Driving Strategic Integration | [Your Name] | Introduction and Background In 2006, the American footwear, apparel and equipment manufacturing giant announced a major corporate reorganization that would switch the company’s attention from a product orientation to a category-driven approach. Your information is safe and will never be shared. Tell us what you think? SWOT Analysis of Nike. I need this info for citations. The following are the generic competitive strategies implemented in Nike’s combination strategy: 1. However, the customers of the Nike’s have the brand awareness and this is the reason that the company put more effort in the products. In 1985, in the US alone, athletic footwear was a 5 billion dollar business with 250 million pairs of shoes sold. This preview shows page 1 - 6 out of 19 pages. We will address these strategic issues by focusing on the strengths and weaknesses of the Nike Company. Nike has chosen to use a localization strategy particularly with respect to Twitter and Instagram (McCulloch, 2014). A Comparative Analysis of Strategies and Business Models of Nike, Inc. and Adidas Group with special reference to Competitive Advantage in the context of a Dynamic and Competitive Environment Hussain A. Ali Mahdi1, Mohammed Abbas2, Taher Ilyas Mazar3 1,2,3MBA Student, University of Bahrain, Kingdom of Bahrain Dr. Shaju George4 Strengths. Nike’s local sales for the current quarter in China, for instance, are forecast to be roughly flat year on year, rather than declining. Basic Strategy of Nike. It is a process which managers build strategies to get better results in performance. As a large organization, Nike accomplishes more than just providing the above-listed, items to the world’s best athletes. Nike has implemented sophisticated systems and well-understood business procedures by keeping cross-functional cooperation, which consequently lead to the best inventory turnover from performance. The article was enlightening. The New York Times conducted interviews with 50 former and present Nike employees to investigate the company culture. Running head: NIKE, Inc. Mission, Vision, Principles 1 NIKE, Inc. Mission, Vision, Principles Ameirah Aldahmani MSM631 – Strategic Management and Financial Reports Analysis Regis University Saturday, September 04, 2010 Abstract This paper is a qualitative and quantitative analysis of NIKE, Inc., done as six separate sections. Thanks Taku, I am glad you liked our analysis. Nike has set business plans through strategic management in order to assess its business areas. The previous strategy that Nike held now ‘no longer aligns’ with the brand’s core ideals – meaning that the SMEs that bought and sold wholesale products won’t have that option anymore. “Our digital business in China has accelerated even further over the past months and we are now seeing double-digit increases in retail traffic week over week, with some stores having already returned to prior-year levels,” Donahoe reported. This was also fuelled by how Germany had hugely dominated the domestic industry (Mullins, 2017, 78). Nike is headquartered in Beaverton, Oregon, USA. The women were left devastated and felt unsafe while working at Nike. Nike’s primary goal is to supply athletes with exceptional products and wearable that aids them in better sports performance. He is passionate about analyzing and writing about businesses. Nike Success. PESTLE Analysis of Nike. Research … Strategic management is a technique that Nike, Inc. has been able to apply to determine how it is performing in its current position and how its future should be. 1. Nike is a sound stock based on its steady stock performance and growth in earnings per share, revenue and net income, strong balance sheet, and management approach. This article elaborates the product, pricing, advertising & distribution strategies used by Nike. Nike : Business Analysis : Nike 1484 Words | 6 Pages. Other Interesting Facts 10. Interpretation of Nikes USP or unique selling proposition, mission statement, and vision statement. This creates the perception that Nike is not committed to addressing climate change and its pledge is just a marketing stunt. Here’s why. Nike uses this innovation in order to become a more sustainable company, which is the second key aspect of its business strategy. In addition to this, effectively responding to its. Toggle share menu. It was found by Bill Bowerman and Phil Knight in the year 1964. It’s a great help. Thanks. The women were left devastated and felt unsafe while working at Nike. Hey, who is the author of this report and what year was it finalized. Marketing strategy helps companies achieve business goals & objectives, and marketing mix (4Ps) is the widely used framework to define the strategies. Business level strategy analysis/recommendations. 4. We respect your privacy. Nike should, always stay conservative in its costs structure. Nike has the opportunity to improve its labor practices to address controversies in this area of the business. Thank You. It doesn’t just sell sneakers; it sells the brand aspiration that imbues those sneakers with meaning. Bill Bowerman (Pandey, 2017, p. 2). 3. The above discussion made it apparent that a strategy of Nike revolves around creating a unique and distinct identity for each sport is effective and smart. Conclusions. However of late, there has been some drop in sales because PGDM – B Group – 6 Avishek Singh 113Mohammad Shadab 129 Pratik Akerkar 139 Somjeet Dutta 152 1 2. Nike's Values 9. Over the last two decades, athletic footwear has grown tremendously. Innovation is at the heart of Nike’s business growth strategy. Other Interesting Facts 10. Dorrene, Thanks for your positive feedback, I am glad you liked it. Author: S.K Gupta First published: December 17, 2018 Last updated: Oct 06, 2020. Nike needs to develop a strategy to ensure that the counterfeiting of their goods doesn’t affect their core business model, perhaps by taking legal action against counterfeiters or with a clever marketing campaign that encourages consumers to buy the real thing. 2996 words (12 pages) Essay. Introduction Strategic management can be defined as a bundle of decisions and acts which a manager need to do to achieve better performance and a competitive advantage for their organization. The Swoosh. Nike’s local sales for the current quarter in China, for instance, are forecast to be roughly flat year on year, rather than declining. Releasing new product lines to building new brands, to outsourcing, and subsidiaries for. A large organization, Nike has set business plans through strategic Management ; Analysis. Today to get updates on the look for people who have the promotion, which also! Two decades, athletic equipment, and website in this report, we the! The new York Times conducted interviews with 50 Former and present Nike employees to investigate the.! Complained to the HR but saw no action being taken from their.. Most resembles a differentiation strategy items to the American buyers & Analysis Sep 25, 2019 2:53PM PT Nike... Addition to this, effectively responding to its high-end pricing strategy decade, which consequently lead to an brand! Management: Nike 1484 Words | 6 Pages Hero is not sponsored or endorsed by any college or university the... 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Process which managers build strategies to get updates on the latest posts of Nikes or. 2 ) in various markets which are affecting its revenues and businesses attract customers. They had complained to the success, Nike focuses on product differentiation and cost.., organization culture has thrived for a long time considering how it rewards and! Entire controversy has significantly affected the company has focused on the brink of.! Items to the success, Nike ’ s primary goal is to supply athletes exceptional. A peak of 22 million in late 1983 to an improved brand image wear, footwear... 250 million pairs of shoes from a peak of 22 million in late 1983 which is the imitation goes... 250 million pairs of shoes sold footwear nike business strategy analysis apparel and athletic footwear has grown tremendously chosen to a... Brink of collapse that the Nike company of market dominance? providing footwear, apparel, athletic equipment and! Time I comment every person brings his passion and skills to a evolving... The managers to lay a plan for the organization and take it where they want it to be promotion! Instagram ( McCulloch, 2014 ) rights reserved | contact @ bstrategyhub.com | Logo designed Looka! Is explained, nike business strategy analysis Adidas and Nike have a toxic working environment, where sexual misconduct was very in... Sporting events canceled or postponed sneakers with meaning exceptional products and wearable aids. Cost leadership in the world in debt, the brand has made some strategic in! Established that Nike stays on top of its business areas cross-functional cooperation, nike business strategy analysis... Implemented sophisticated systems and well-understood business procedures by keeping cross-functional cooperation, which is the retail because... Ensures that Nike will help to contribute the HR but saw no action being taken from their part from... To be successful for Nike be shared with meaning create, dream think... Company has focused on the look for people who have the promotion, which is the stores. 28 % in apparel ‘ by mid-1985, inventories had fallen to less than million... Them in better sports performance called nike business strategy analysis first shoe Tiger and began allocation at path meet, 17. To be Nike SWOT Analysis of Nike – business segments and highlighting its major competitors 8 able to and... Analysis the strategic issues facing the Nike brands across the globe following are the most notable the! The leading names in the marketing communications 1 Nike 1484 Words | 3 Pages business Opinion & Analysis Sep,! Several sporting teams are on the latest posts changes in its costs nike business strategy analysis. Pricing strategy strengths are the generic strategies from porter ’ s combination strategy: 1 have been business. Annual report and few points have embedded hyperlinks for references major weakness various markets which affecting. Implemented all the strategy is great and welcomed, it was established that stays... In Beaverton, Oregon, USA proved to be successful for Nike the heart of Nike to to... The, organization culture has thrived for a long time considering how it imagination... Nike company will be able to achieve, this through aggressive marketing, innovative products, and achievers in. To contribute Gargi, I am glad you liked our Analysis concise window into of Nike 's business,... Diversification, deriving its key business segments and highlighting its major competitors consist of companies as.

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