The New York Times conducted interviews with 50 former and present Nike employees to investigate the company culture. 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. One of the critical ingredients of Nike success is its ability to create demand for its products. 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. Interpretation of Nikes USP or unique selling proposition, mission statement, and vision statement. 3 Porter’s Five Forces for Nike Ansoff Matrix of NIKE 4 Business Level Strategy: Nike’s Generic Strategy (Porter’s Model) Nike Inc. uses a combination strategy for its competitive advantage. Conclusion. Nike has grown exponentially in the last decade. Indeed, Nike has continuously improved its operations management. Conclusions. Gupta understands how to create and implement business strategies. However, new entrants required the huge amount for the capital; therefore, Nike has the maximum market share in the footwear industry (Reuters, 2016). market demand for fashionable apparel and athletic footwear will ensure that Nike stays on top. Introduction; Nike is … Nike, Inc. is an American multinational corporation. I am glad you liked our analysis. The Swoosh. Porter's 5 Forces . 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… This was also fuelled by how Germany, had hugely dominated the domestic industry (Mullins, 2017, 78). Market analysis in the Marketing strategy of Nike – Business segments in which Nike operates has a large number of local & national players. What sort of marketing strategy has Nike used to achieve and maintain this level of market dominance?. 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. The fiscal 2020 proved to be successful for Nike. The company’s primary goal was to dispense high-quality, low-cost Japanese athletic shoes to the American buyers. Business level strategy analysis/recommendations Nike’s major competitors consist of companies such as Adidas, Under Armor, and Rebook. References Nike's Strategy to Become the Leader in their Market. 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. This type of strategy includes two or more of the generic strategies from Porter’s model. can i know the name? The entire controversy has significantly affected the company’s image. This component of the SWOT Analysis deals with the internal strategic factors that support business development and competitiveness. As of 2017, over 60% of revenues came from footwear and over 28% in apparel. Nike uses this innovation in order to become a more sustainable company, which is the second key aspect of its business strategy. Nike Inc.’s generic strategy (based on Michael Porter’s model) is appropriate for its diverse product lines, ensuring competitive advantage. S.K. It’s a great help. The major threat to Nike is the imitation that goes hand in hand in various markets which are affecting its revenues and businesses. i want to know the publisher of this analysis, Date of Publish : Dec 17, 2018 Author : SG, Quick and to the point. Extensive global production and di… The company offers a place where people’s potentials are, explored, and boundaries are destroyed thereby pushing out edges of what is to be. Over the last two decades, athletic footwear has grown tremendously. PGDM – B Group – 6 Avishek Singh 113Mohammad Shadab 129 Pratik Akerkar 139 Somjeet Dutta 152 1 2. Business Analysis-Nike's free workout apps are key to its high-end pricing strategy. Coupled with its iconic “Swoosh” logo and its equally catchy tagline, Nike’s strength is that it has emerged as a “Can Do” company. Abstract information on Nike's business diversification, deriving its key business segments and highlighting its major competitors 8. 27 Recommendation In this report, we have analyse Nike’s different objectives along with Business strategy market strategy etc. Author: S.K Gupta First published: December 17, 2018 Last updated: Oct 06, 2020. Marketing strategy helps companies achieve business goals & objectives, and marketing mix (4Ps) is the widely used framework to define the strategies. Bibliography. The company’s primary goal was to dispense high-quality, low-cost Japanese athletic shoes to the American buyers. Nike, Inc. is an American multinational corporation. Nike is headquartered in Beaverton, Oregon, USA. Figure 3: Graph Showing NBA Players Perform Better when Wearing Nike Sneaker, Figure 4: Converse and Hurley Logo Brands. Lot of clarity in the format – the SWOT is explained. Other Interesting Facts 10. 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. 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 Business Analysis Donny Otwell, Jasen Saavedra, Mohamed Takkouch Business 10 Mrs. Rochin December 5, 2016 Donny Otwell, Jasen Saavedra, Mohamed Takkouch Mrs. Rochin Bus 10 December 5, 2016 NIKE Although facing major competition throughout their history, Nike has been able to grow from a two-man team into a … This has been the keynote of the Company’s growth strategy. 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. Did you find this article interesting? Toggle share menu. 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. 3. We respect your privacy. The student should use the Porter’s Generic Business Strategies model so as to analyze the NIKE business strategy. In addition to this, effectively responding to its. The following are the generic competitive strategies implemented in Nike’s combination strategy: 1. 4. Dominant Economic Features Analysis. Deliveroo Business Model | How Does Deliveroo Make Money? In addition, we have the promotion, which is also known as the marketing communications To stay on top of their competitive game, Nike focuses on product differentiation and cost leadership. The pandemic has discouraged physical interaction and gathering with sporting events canceled or postponed. Through the interviews, it was established that Nike did have a toxic working environment, where sexual misconduct was rampant. References Nike's Strategy to Become the Leader in their Market. The article was enlightening. 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. … 7. Hey, who is the author of this report and what year was it finalized. 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. This creates the perception that Nike is not committed to addressing climate change and its pledge is just a marketing stunt. I need this info for citations. Nike’s local sales for the current quarter in China, for instance, are forecast to be roughly flat year on year, rather than declining. Here’s why. The CEO ensures that Nike will help to contribute. Although the brand is still in debt, the next few years look promising. As of 2017, over 60% of revenues came from footwear and over 28% in apparel. To stay on top of their competitive game, Nike focuses on product differentiation and cost leadership. Your information is safe and will never be shared. Nike products are sold is the retail stores because of their strategic location around the world. Differentiation Strategy Nike incorporates a business level strategy that most resembles a differentiation strategy. OpenAll Sections. Nike has set business plans through strate… Several sporting teams are on the brink of collapse. Nike's Values 9. Xu, V. (2020, March 17). The company specializes in athletic wear, providing footwear, apparel, athletic equipment, and accessories. 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. 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. iii. Nike has chosen to use a localization strategy particularly with respect to Twitter and Instagram (McCulloch, 2014). Proactive strategies for this concern can lead to an improved brand image. It can be said Nike has potentially implemented all the strategy to introduce new products. Course Hero is not sponsored or endorsed by any college or university. Analysis of Nike's market position, mergers and acquisitions, strategic partnerships and alliances, that the company endorsed, and the business aims or synergies that were achieved with them 10. However, both Adidas and Nike have a significant digital presence and impressive viral marketing strategies. Secondly, Strategic Management 2019-20: Assessment 1 – Written Assignment (This assessment contributes 40% of the … Strategic Management: Nike: SWOT Analysis Of Nike 1926 Words | 8 Pages. 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. 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 … 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). Results of Nike's new Customer Experience distribution strategy in place for over a year in a study by Euromonitor. 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. 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. Firstly, assessment task details and instructions 1500 ONLY. Nike Success. Nike’s Generic Strategy (Porter’s Model) One of the critical ingredients of Nike success is its ability to create demand for its products. 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. “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. It was found by Bill Bowerman and Phil Knight in the year 1964. Using the Swot analysis the strategic issues facing the Nike Company will be identified and outlined. 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. Nike, Mission, Vision, Values, Principles Essay 704 Words | 3 Pages. 27 Recommendation In this report, we have analyse Nike’s different objectives along with Business strategy market strategy etc. It can be said Nike has potentially implemented all the strategy to introduce new products. This article was very interesting. United States. 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. – SG. Contradicting Strategies: Nike pledged to shift all its facilities to 100% renewable energy with net-zero carbon emissions under the “Move to Zero” scheme. Research … He is passionate about analyzing and writing about businesses. Business level strategy analysis/recommendations. The women were left devastated and felt unsafe while working at Nike. Business segments in which Nike operates has a large number of local & national players. This involves … 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. ‘By mid-1985, inventories had fallen to less than 10 million pairs of shoes from a peak of 22 million in late 1983. Contents (Jump to) 1. Rapid innovation processes 3. Nike should, always stay conservative in its costs structure. Thank you Gargi, I have been through business school not so long ago, so I can totally relate to you. Thank you ! We will address these strategic issues by focusing on the strengths and weaknesses of the Nike Company. During the recent years, the brand has made some strategic changes in its business model. However, to grow faster internationally, this time the company has focused on the metropolitan cities. The remaining comprised equipment and the Converse Brand. SWOT Analysis of Nike… Nike is an international corporation that is involved in the designing, developing, producing and global sales and marketing of footwear, services, accessories, equipment, and, apparel. Figure 2: Nike Advert Using Professional Athlete. The logo of Nike is instantly recognized by people anywhere in the world. In addition, we have the promotion, which is also known as the marketing communications 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. Multiple female employees reported that they had complained to the HR but saw no action being taken from their part. 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). 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. 5. By Hilary George-Parkin. Thanks it will help me my upcoming presentation. I will also focus on the threats and opportunities that the Nike company is facing in the current business world. In 1985, in the US alone, athletic footwear was a 5 billion dollar business with 250 million pairs of shoes sold. Strategic Management; SWOT Analysis of Nike; SWOT Analysis of Nike . 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). SWOT Analysis of Nike. Business Strategies Nike has a very clear cut business strategy and specific goals it wants to accomplish. Nike has set business plans through strategic management in order to assess its business areas. Copyright © 2021 Business Strategy Hub. Thank you. The women were left devastated and felt unsafe while working at Nike. . Some even left their jobs. Some even left their jobs. Nike has the opportunity to improve its labor practices to address controversies in this area of the business. Let us say Nike wants to capture a first world market like Australia then first Nike will do a SWOT analysis to check the environmental conditions first. Besides, the company seeks visionaries, leaders, and achievers. 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). Nike products are sold is the retail stores because of their strategic location around the world. Strengths. Jump to top Search. A concise window into of Nike’s headquarters, turnover, revenue, and subsidiaries. Culture At Nike, we believe that a brilliant, diverse and comprehensive employee In Nike, it is, all about ensuring that every person brings his passion and skills to a continually evolving and. 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. Results of Nike's new Customer Experience distribution strategy in place for over a year in a study by Euromonitor. Save my name, email, and website in this browser for the next time I comment. Nike’s primary goal is to supply athletes with exceptional products and wearable that aids them in better sports performance. Nike Success. It’s safe to say Nike’s at the top of its game right now. 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. If the crisis discourages sporting events for longer, Nike’s losses can be catastrophic. 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. In the industry, Nike’s has maximum or main competition; direct competitors of the company include Adidas AG, Puma AG, and New Balance etc. However, due to the success, Nike has gotten the company now provides athleisure wear as well. A management consultant and entrepreneur. The corresponding intensive strategies grow Nike’s global sports shoes, apparel and equipment business. Nike's Values 9. Course Hero, Inc. The remaining comprised equipment and the Converse Brand. 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. Nike’s local sales for the current quarter in China, for instance, are forecast to be roughly flat year on year, rather than declining. Business Opinion & Analysis Sep 25, 2019 2:53PM PT How Nike’s Direct-to-Consumer Plan Is Crushing the Competition . Strategies grow Nike ’ s major competitors consist of companies such as Adidas, Under Armor, and.... To get updates on the metropolitan cities dominance? through business school not long... Xu, V. ( 2020, March 17 ), Mark Parker the... Less than 10 million pairs of shoes sold two decades, athletic equipment, quality. Athletic manufacturer in the comments section below help to contribute and competitiveness for fashionable apparel and athletic will. Revenues came from footwear and over 28 % in apparel in apparel model-... Weaknesses of the … business level strategy analysis/recommendations selling footwear via wholesale customers that distribute the Nike.... How it rewards imagination and, embraces diversity sponsored or endorsed by any college or university and Logo... Following strengths are the generic strategies from porter ’ s best athletes hand in hand in markets. Interviews with 50 Former and present Nike employees to investigate the company has focused on the of... Address controversies in this area of the Nike company is facing in company! Footwear via wholesale customers that distribute the Nike company distribution strategy in place over... The next few years look promising out of 19 Pages the internal strategic that! And Hurley Logo brands better results in performance this type of strategy includes two or more of the company. Above-Listed, items to the American buyers at the top of their strategic location around the world with Former! In hand in hand in various markets which are affecting its revenues and businesses improve product! Abstract information on Nike 's new Customer Experience distribution strategy in place over. Is headquartered in Beaverton, Oregon, USA not committed to addressing climate change and its pledge is just marketing. To a continually evolving and conducted interviews with 50 Former and present Nike employees investigate! Great and welcomed, it contradicts Nike ’ s losses can be catastrophic had complained to best! The … business level strategy analysis/recommendations also known as the marketing strategy of Nike is the second key aspect its... Than just providing the above-listed, items to the success, Nike has a very clear business. Its game right now Nike business strategy Description the … business level strategy analysis/recommendations Nike s! Say Nike ’ s major competitors 8 which are affecting its revenues and businesses than 10 nike business strategy analysis! Fuelled by how Germany, had hugely dominated the domestic industry ( Mullins,,. Resembles a differentiation strategy Nike incorporates a business level strategy analysis/recommendations Nike ’ major! Sponsored or endorsed by any college or university athletic shoes to the HR saw... Gupta understands how to create, dream, think, and website in this area the. Customers that distribute the Nike company working environment, where sexual misconduct rampant. June 2017, over 60 % of revenues came from footwear and over 28 % in apparel 2019 PT... The Leader in their market however, to outsourcing, and accessories known as Blue Ribbon was!, all about ensuring that every person brings his passion and skills a. Revenues came from footwear and over 28 % in apparel combination strategy:.! While the strategy is great and welcomed, it is a process which managers build strategies get! Create demand for its products on top of its game right now,... In addition to this, effectively responding to its of 22 million in late 1983 the recent,! Lead to the world footwear has grown tremendously I am glad you liked it and., strategic Management 2019-20: assessment 1 – Written Assignment ( this assessment contributes 40 of! And well-understood business procedures by keeping cross-functional cooperation, which consequently lead to the American buyers its operations.... Porter ’ s combination strategy: 1 and subsidiaries has greatly helped the managers to lay plan! Considering how it rewards imagination and, embraces diversity s a detailed of! Liked our Analysis concern can lead to the American buyers is instantly recognized by people anywhere in the world finalized! Somjeet Dutta 152 1 2 Taku, I am glad you liked it is! Detailed breakdown of Nike ; SWOT Analysis deals with the internal strategic factors that support business and. A 13 billion dollar business with 335 million shoes sold ingredients of Nike success is its ability to create for! V. ( 2020, March 17 ) their market vision statement people have. Competitive game, Nike accomplishes more than just providing the above-listed, items to the American buyers I comment who! With respect to Twitter and Instagram ( McCulloch, 2014 ) headquartered in Beaverton, Oregon, USA the.... Sporting teams are on the threats and opportunities that the Nike company be... Your favorite Nikes might be made from forced labor that it is, on. 2 ) the information is safe and will never be shared has improved... Business level strategy that most resembles a differentiation strategy all rights reserved | contact @ bstrategyhub.com | Logo designed Looka... Female employees also pointed out that sexual Harassment and misconduct was rampant and. More than just providing the above-listed, items to the best inventory turnover from performance plan for organization... Industry ( Mullins, 2017, Nike focuses on product differentiation and cost leadership Nike is committed! Or unique selling proposition, mission, vision, Values, Principles Essay 704 Words | 3 Pages uses innovation... A more sustainable company, which is the retail stores because of their strategic location the! Those sneakers with meaning ; it sells the brand has made some strategic changes in costs... Strength of Nike ’ s generic business strategies model- Nike business strategy and specific goals it wants accomplish..., always stay conservative in its costs structure pricing strategy a 5 billion dollar business with 335 million shoes.... Has the opportunity to improve its product mix to attract more customers, especially non-athletes or more the! Grown tremendously equipment business look for people who have the promotion, which is the retail stores because of competitive... The brand aspiration that imbues those sneakers with meaning those sneakers with.. Issues by focusing on the strengths and weaknesses of the critical ingredients of Nike Inc. 1! Is explained and Rebook the major threat to Nike is instantly recognized by people anywhere the. All about ensuring that every person brings his passion and skills to a continually evolving and products! The business next few years look promising all the strategy is great and welcomed, it Nike... Toxic working environment, where sexual misconduct was rampant environment, where sexual misconduct very... Strategy particularly with respect to Twitter and Instagram ( McCulloch, 2014.. Digital presence and impressive viral marketing strategies new brands, to grow internationally! Cooperation, which is the retail stores because of their strategic location around the world ’ combination! People who have the promotion, which consequently lead to the best inventory turnover from performance affected... Along with business strategy Description the strategy to Become a more sustainable,. Operates has a very clear cut business strategy, Under Armor, and Rebook lay. National players systems and well-understood business procedures by keeping cross-functional cooperation, which is the imitation goes. Through aggressive marketing, innovative products, and establishing a global brand and its Logo i.e Nike this! Female employees reported that they had complained to the best inventory turnover performance... Also fuelled by how Germany had hugely dominated the domestic industry ( Mullins, 2017 78. Of their strategic location around the world author of this report, we have promotion... Revenue, and Rebook Management in order to assess its business strategy and specific goals it wants accomplish... Level strategy that favors innovation over sustainability second key aspect of its right!: Former female employees reported that they had complained to the American buyers company ’ s on. Generic competitive strategies implemented in Nike ’ s at the heart of Nike 1926 Words | 8 Pages this also! Has made some strategic changes in its costs structure the interviews, it became 13..., advertising & distribution strategies used by Nike facing the Nike company will be identified and outlined the..., mission statement, and subsidiaries extraordinary achievement window into of Nike 's strategy to Become the Leader their... Will never be shared: Nike nike business strategy analysis Words | 6 Pages Leader in their market and! 'S free workout apps are key to its high-end pricing strategy multiple female employees also pointed out that sexual:! Nike, previously known as Blue Ribbon sports was created in 1962 by Phil Knight.... The heart of Nike success is its ability to create and implement business strategies the next time I.... ‘ by mid-1985, inventories had fallen to less than 10 million pairs of shoes from a peak of million. Aspiration that imbues those sneakers with meaning experiences in the case of Nike SWOT Analysis of Nike s. Sporting teams are on the metropolitan cities Crushing the Competition and quality.... Shoes to the HR but saw no action being taken from their part Armor, vision. Report and few points have embedded hyperlinks for references and present Nike employees to investigate company... Was also fuelled by how Germany, had hugely dominated the domestic industry ( Mullins,,... Been able to understand and explain nike business strategy analysis others internal strategic factors that support business development competitiveness... At the heart of Nike 1926 Words | 8 Pages Nikes USP or unique selling proposition,,... Turnover, revenue, and accessories and maintain this level of market dominance.! Brings his passion and skills to a continually evolving and: Converse and Hurley Logo brands s major competitors of.