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“Succsess factors of NIKE’s growth”

Independent University, Bangladesh

Submitted to

Dr. Farah Hasin Faculty of International Business (MBA 514, Sec-03)

School of Business

Independent University, Bangladesh

Submitted by

Farabi Ahmed

ID: 121-121-8

Date of Submission: 31st March, 2015

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Letter of Transmittal

31st March, 2015.

Dr. Farah Hasin

International Business (MBA 514, Sec-03)

Faculty Member of School of Business,

Independent University Bangladesh.

Subject: A report on ―Succsess factors of Nike‘s growth".

Dear Madam,

With due respect, I would like to inform you that I have completed report on ―Succsess factor

of Nike’s Growth‖. It is immense pleasure for me because I have successfully completed this

report by receiving your continues guideline as a supervisor.

I have endeavored to prepare this report from my level of best to accumulate relevant &

insightful information. If I am included any wrong information in unconsciously so please

forgive me as your student. It is a great experience for me to make this report. I have tried to

make the report comprehensively within the schedule time & limited recourse.

You‘re sincerely

.....................................

Farabi Ahmed

ID: 121-121-8

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Table of Contents

Serial Contents Page

1 Abstract 5

2 Nike Overview

I. History

II. Products of Nike

7 - 10

3 Board of Directors 11

4 NIKE Products (male & female) 12 – 13

5 Key factor that influences succsess of the NIKE 14 – 17

6 External Analysis 17 – 20

7 Porter Five Forces Model 21 – 26

8 Internal Analysis 27 – 35

9 Internal Factor Evaluation 35 – 36

10 SWOT Analysis 36 – 39

11 Current Strategies & Goals 39 – 42

12 Growth Factors Spiking NIKE Revenues and Earnings 43 – 44

13 Recommendations

I. First Recommendation

II. Second Recommendation

III. Third Recommedation

45 – 46

14 Conclusion 47

15 References 48

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ABSTRACT

I analyze Blue Rıbbon Sports (NIKE) Company‘s key success factor of their

successful business growth with their products, market position, competitors,

external analysis, internal analysis, SWOT analysis organization structure etc.

Also I made up their current strategy according to the general data of NIKE.

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NIKE OVERWIEW

NIKE HISTORY

Founded as an importer of Japanese shoes, NIKE, Inc. (Nike) has grown to be the world's

largest marketer of athletic footwear and apparel. In the United States, Nike products are sold

through about 20,000 retail accounts; worldwide, the company's products are sold in about

110 countries. Both domestically and overseas Nike operates retail stores, including

NikeTowns and factory outlets. Nearly all of the items are manufactured by independent

contractors, primarily located overseas, with Nike involved in the design, development, and

marketing. In addition to its wide range of core athletic shoes and apparel, the company also

sells Nike and Bauer brand athletic equipment, Cole Haan brand dress and casual footwear,

and the Sports Specialties line of headwear featuring licensing team logos. The company has

relied on consistent innovation in the design of its products and heavy promotion to fuel its

growth in both U.S. and foreign markets. The ubiquitous presence of the Nike brand and its

Swoosh trademark led to a backlash against the company by the late 20th century, particularly

in relation to allegations of low wages and poor working conditions at the company's Asian

contract manufacturers.

Nike History Timeline Info

1950's

• Phil Knight and Bill Bowerman meet

1960's

• Blue Ribbon Sports (BRS) was made and founded by Phil Knight

• The popular Cortez aka "Dope Mans" are made in Japan

1970's

• The Swoosh logo is created by Carolyn Davidson for $35.00

• The first Nike model shoe to hit the retail market is a soccer/football shoe

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• A Promo Nike Tee becomes the first apparel item

• The famous Waffle Trainer is introduced, which becomes the best selling shoe in the

US

• Nike‘s racing and training spiked shoe is made called the "Elite"

• Factories for manufacturing are set up in Korea and Taiwan

• For the first time Nike shoes are sold in Asia

• Blue Ribbon Sports changes their company name to Nike Inc.

• The first Nike running shoe with a air sole system to come out is the "Tailwind"

• World Headquarters are opened in Beaverton, Oregon

1980's

• Nike talks with the P.R. of China so they can produce shoes there

• Nike shoes become Canada‘s top seller

• Nike shoes are now produced in 11 countries

• The famous "NIKE AIR" Air Force 1 and Air Ace make their introduction

• Over 200 shoes are now in Nike‘s footwear line

• The first high performance kid‘s running shoe is called the "Destiny"

• The Air Jordan makes it‘s way to Nike footwear line up

• The Sock Racer comes out and is part of the Dynamic-Fit technology

• The first Air Max

• The first Cross Trainer

• The famous "Just Do It" slogan comes to life

• The first model to combine the footbridge device and Air Sole is the Air Stab

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• Spike Lee‘s "Mars Blackmon" character helps promote the third style of Air Jordan

• Bo Jackson‘s "Bo Knows" commercials include the "Just Do It" slogan

• Nike moves to a new World Campus in Beaverton

1990's

• The new World Campus sits on 74 acres with 570,000 square feet.

• In Portland, Oregon the first Nike Town opens

• The intro of the Air Huarache running shoe

• The intro of the Air Mowabb

• Nike Town opens in Chicago

• Charles Barkley first signature shoe is introduced

• The intro of the Run Walk shoe

• Nike Town opens in Atlanta and Orange County

• The intro of dual pressure cushioning in the Air Max

• Nike gets distribution rights in Korea and Japan

• The intro of Zoom Air technology

• Nike Town New York opens

• The Air Penny comes to life

2000's

• 2000: The National Football League declines to renew its exclusive

• apparel licensing arrangement with Nike.

• 2001: Nike opens its first Nike Goddess store, a unit targeting women, in Newport

Beach, CA.

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• 2003: Nike purchases Converse Inc. for $ 305 million.

• 2008 :Nike acquired sports apparel supplier Umbro,

• 2009: Air Jordan Shoe

• 2010: Nike Future Sole Design Competition.

Origin of the Name and the Swoosh

• is the Ancient Greek goddess of victory Nike

―It is one of the most recognized symbols in the world – The Swoosh. Simple. Fluid.

Fast.”

Evolution of the Swoosh Logo

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BOARD OF DIRECTORS

Philip H. Knight:Chairman of the Board of Directors

Mr. Knight, 71, a director since 1968, is Chairman of the Board of

Directors of NIKE. Mr. Knight is a co-founder of the Company and,

except for the period from June 1983 through September 1984, served

as its President from 1968 to 1990, and from June 2000 to 2004. Prior

to 1968, Mr. Knight was a certified public accountant with Price

Waterhouse and Coopers & Lybrand and was an Assistant Professor of

Business Administration at Portland State University.

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PRODUCTS

For Men and Women: Shoes

The Nike Air Force, now known as the Air

Force 1 (or AF1 or AF-1) athletic shoe is a

product of Nike, Inc. created by designer

Bruce Kilgore. This was the first basketball

shoe to use the Nike Air technology. This

shoe is offered in low, mid and high top.

Nike Max is a line of shoes first released by

Nike in 1987. The shoe was originally

designed by Tinker Hatfield, who started out

working for Nike as an architect designing

shops and offices; he also designed the Air

Jordan shoe

The shoe is given a simple outer design that

consists of the Nike Swoosh symbol across

the sides of the shoe and a streak across the

lower portion of the outer sole. Leather was

the first material used to construction the

shoe

Nike designers began a mission to re-craft iconic

sports apparel in the most technical materials they

could find. The ubiquitous American varsity jacket was

an obvious choice for the experiment that would

become Nike Sportswear. Raiding the All Conditions

Gear (ACG) innovation cache, they found fabrics,

laminates, and bonding methods that could brave nasty

weather but still look fresh.

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Wind runners and shells

T-shirt:

Gear – Backpacks, bags

The Nike Checkered Flash Men's Running Jacket offers

ultra-lightweight weather protection and reflectivity for

comfort and visibility on cool, low-light runs. The Nike

Checkered Flash Men's Running Jacket offers ultra-

lightweight weather protection and reflectivity for

comfort and visibility on cool, low-light runs.

The Nike Checkered Flash Men's Running

Jacket offers ultra-lightweight weather

protection and reflectivity for comfort and

visibility on cool, low-light runs. Rib crew neck

with interior taping for durability and comfort.

Screen print at front for style. Regular fit that's

not too slim, not too loose.

With a cushioned shoulder strap and water-

resistant bottom, the Nike Team Training Max

Air (Medium) Duffel Bag provides lightweight

shock absorption and keeps gear dry in wet

conditions. Adjustable shoulder strap with Max

Air unit for shock absorption and custom

cushioning. Dual-zip main compartment for

secure, spacious storage. Ventilated shoe

compartment for versatile storage. The Nike

Team Training Gym Sack helps you organize

your gear with an interior divider and bonded zip

pocket. Water-resistant fabric with a PU-coated

bottom keeps your essentials dry and secure.

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Key factors that influence success of NIKE

If a company is able to establish brand awareness, they will have a significant advantage in

grabbing consumer's attention and, therefore, market share. In today's society where

consumers have significantly less time to shop and compare, brand awareness is critical. If an

established brand name effectively conveys the messages of quality and dependability,

consumers will automatically go to that brand relying on the image that has been created

when they don't have time to shop around.

Manufacturing efficiency is something that companies are constantly striving for as well.

Athletic shoe manufacturers must balance the costs of labor, raw materials, shipping, import

tariffs, and technological advancements. In an effort to keep costs down, the industry has been

looking to overseas sourcing. This reduces the risk of losing revenue if one region which a

manufacturer incurs problems. Favorable legislation regarding foreign manufacturing has led

to a huge increase in foreign sourcing. Overseas production and sourcing can lower material,

and labor costs.

The footwear companies must choose their distribution channels carefully because they want

to make the product available, yet remain true to their image and goals. Retailers account for

the largest percentage of sales, so manufacturers must be especially careful with their

relationships with them.

Technological advancement is becoming more and more of a player in the footwear industry.

With computer-aided design (CAD), companies have been able to successfully shorten their

design to distribution cycle to only a few months. Also, new technology has facilitated new

quick-response programs that link retailers with manufacturers to allow the retailer to have the

correct inventory when it is needed called electronic data interchange (EDI). Immediately

after a sale is made, electronic point of sale scanners read the information related to the sale

such as price, product, size, etc. and notify the manufacturer of the sale. With this, the

manufacturer is able to accurately modify production to fit consumer demand.

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Demand cycles

Due to the largely subjective nature of athletic footwear purchasing, the success of the

industry is dependent on the current economic cycle. When consumers are concerned about

future economic conditions, they will put off their purchases until their confidence rebounds.

In addition to the amount of confidence that consumers have for the future, the amount of

disposable income available to them directly affects how much is spent on athletic footwear.

When consumers experience a drop in disposable income, discretionary purchases such as

footwear are put off.

Advertising campaigns

Companies spend a large portion of their revenue on advertising. A lot of pressure is put on

the companies to come up with new and successful advertising campaigns. If a campaign

fails, the companies‘ sales suffer as a result.

NIKE has always been an industry leader when it comes to advertising. Their advertising

campaigns are known all over the world as being widely successful. NIKE is truly a

trendsetter when it comes to advertising, not just for shoes, but for the advertising industry as

well. The company was all about the clarity of matching technology to athletic performance-

and, in the ads, showing the passion that resulted. By going against the norms in advertising,

NIKE was able to distance itself from other shoe makers and thus establish strong customer

core.

Segmentation & Targeting

Nike‘s target market for its shoes, clothes and other accessories are males and females

between the age of 13 and 35 years. Nike segments its markets on the basis of age, gender,

geographic locations, psychographic, and benefits sought.

On the basis of age, Nike targets a variety of age groups from young adolescent to middle-

aged adults. Nike has different advertisements for men and women of every race and

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nationality separately. Nike now is focusing on targeting more on women and Generation Y.

Also teams of any sport are targeted by Nike.

Nike‘s aim is to push its products in countries that apply to certain sports, which are

popular in that particular country. For example, Products relating to Rugby are advertised

more frequently in Europe when compared to U.S., as Rugby is popular in Europe.

Nike promotes a positive and confidant attitude and targets people who want to attain that

attitude. It also is targeted towards customers who are interested in athletics.

On the basis of benefits sought, Nike provides shoes, apparel and equipment for a variety of

sports all over the world. It also offers products to many different people who have different

tastes, interests and needs. This can be seen from the fact that Nike has a website where

consumers can design their shoes according to their requirements and tastes.

Main customers

The industry of footwear can be broken up into three main customer groups, which are the

Baby Boomers, Generation X, and Generation Y. These three generations are broken down as

follows: Baby Boomers are from ages 35-53, Generation Y are consumers from 4-21, and

Generation X is consumers from 22-32. As we develop ideas about the main customer groups

within the footwear industry we can conclude that the Baby Boomers account for 31% of the

population, which is equal to about 81 million consumers. Generation Y is the second largest

group that accounts for 28% of the population which represents about 75 million consumers.

The smallest customer group is Generation X; they comprise about 17% of the population,

which equals about 46 million consumers. Nike has become more appealing among younger

consumers and has shifted away from the Generation of the Baby Boomers.

Nike and many other large shoe industry retailers are shifting their marketing direction from

the Baby Boomers to the younger consumers of Generation X and Generation Y. There are

many reasons to why the industry is trying to change their target market to younger viewers.

As people become older many of their attitudes, priorities, and time obligations have

decreased their ambition for shopping. Now that many of the Baby Boomers are within their

forties and fifties, many of their priorities have shifted towards the future, in a sense that they

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need to save for retirement, different tuition payments for their children, and also different

healthcare necessities that are important to them and their families.

Positioning

Nike promotes products that ooze with style, attitude and self-confidence. This message is

clear in Nike‘s tagline ‗Just Do It‘ or ‗If you have a body, you are an athlete‘ which is shown

in many advertisements of Nike. The former message of Nike has been used since 1989, when

it was first introduced and the latter was developed by Bill Bowerman when Nike first started.

This message clearly defines Nike‘s image which is a positive and self-confident nature.

Growth Strategy

On May 5th, 2010 Nike revealed its Global Growth Strategy to achieve sustainable, long-

term growth across its global portfolio of brands. With a revenue target of $27 billion by the

year 2015, Nike outlined each and every category of their product line – from Nike SB to

Women‘s Training – and hoped to reach that goal through a consumer-focused strategy. The

company also expects to generate over $12 billion of cumulative free cash flow from

operations through 2015. Both goals extend NIKE Inc.‘s long term financial model of high

single-digit revenue growth, mid-teens earnings per share growth and expanding returns on

capital.

EXTERNAL ANALYSIS

POLITICAL FORCES:

Striking dock workers

Political unrest in the production countries

Terrorism in the home country

The government must create economic policies that will foster the growth of

businesses. Nike, fortunately, has been helped by the US policies which enable it to

advance its products. The support accorded to Nike by the US government, particularly in

the general macroeconomic stability, low interest rates, stable currency conditions and the

international competitiveness of the tax system, form the foundation critical to Nike‘s

growth.

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ECONOMIC FORCES:

Slowdown in the economy

Reduction in consumer confidence

Barriers of entry to the EU

Contract manufacturing

In economy, the biggest threat for Nike would be economic recession. During

recession, Nike‘s growth will be adversely affected. The US economy is experiencing

a downturn right now. Consumer purchases are slowing down. Currently, Nike's

feeling the pinch of the economic recession. The Asian economic crisis also affects

Nike since its goods are manufactured in Asia. The labor costs and material prices are

going up. Nike's growth is not just affected by the local economy but also in the

international economy. A weak Euro and an Asian recession could mean weak sales

for Nike.

SOCIAL CULTURAL FORCES:

Brand conscious consumers

Change in buying habits in younger people

Generation Y prefers other types of footwear

Increase in the female share of the market

Corporate social responsibility

People are more health conscious nowadays. Diet and health are getting more prominence.

Consequently, more and more people are joining fitness clubs. There is an accompanying

demand for fitness products particularly exercise apparel, shoes and equipment. Nike is at the

forefront of this surge in demand as people are looking for sports shoes, apparel and

equipment.Nike, however, failed to foresee problems brought about by a sweatshop expose

pertaining to labor and factory conditions at production locations in Asia. This caused bad

publicity and declining sales as society and consumers demand more socially responsible

companies.

TECHNOLOGICAL FORCES:

Speed of change of product

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Design Ability

Speed of News reporting

Nike uses IT in its marketing information systems very effectively. Nike applies

marketing information systems to the economics of innovation, segmentation and

differentiation for most of its businesses. Nike‘s leadership status owes in large part to the

use of extremely valuable Information Technology, and applying it to every aspect of the

product from development to distribution. Nike introduced Nike Shoe, which

revolutionized the cushioning foam used in shoes Nike also collaborated with Apple and

is launching new apparel and footwear that will easily carry the consumer‘s iPod .Product

innovation is an ongoing process and is vital to stay ahead of competition Companies in

this industry invest money in R&D to keep up with the new demands of today‘s athletes.

Nike employs many specialists including engineers, athletes, biomechanics, and industrial

designers to work together in the design process.

ENVIRONMENTAL FORCES:

Re use a shoe

Sustainability philosophy

Climate impact

Environmental consciousness has a strong presence in Western Europe and Japan, as well as

in the United States. Currently, Nike has been ―… pursuing product sustainability for more

than a decade. From increasing the use of water-based solvents in footwear manufacturing

and working to keep greenhouse gas emissions in check, to supporting organic cotton and

turning old shoes into new sports surfaces, Nike‘s commitment to sustainability is part of our

Considered ethos‖ (―What led us to Nike Considered‖). It can be said then that Nike does not

suffer environmental issues.

LEGAL FORCES:

Threaten action by underage workforce

Poor employment record

Corporate social responsibility

Contract manufacturing and copying of product (intellectual property)

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Trade agreements

Without proper management leading and planning in the Nike Corporation, the company

would have suffered from the child labor issue. Nike has made a true bounce-back from the

negative media attention, and continues to be successful due to their strong business ethic

philosophy.

GEOPAPHICAL FORCES:

- Production is outsourced to plants in Asia, Latin America, and Africa

- This reduces costs because labor is cheaper

-Puts sources of production closer to where they will be sold

Firms who outsource lose the ability to closely monitor product quality and working

conditions .Although some people find this unethical, firms cannot afford to keep production

close to home and still compete on profit margins.Plants are also located in many different

countries, rather than being concentrated in one area .

INTERNATIONAL FORCES:

The demographic environment tells marketers who can be potential customer in terms of

size, density, location, age, sex, race, occupation, and other statistics. Changes can result in

significant opportunities and threats presenting themselves to the organization and major

trends for marketers include worldwide explosive population growth (Kotler and Armstrong).

All of these can provide Nike with the tools and assets it needs to promote its products in

different areas of the world and gain a bigger share of the market globally. The industry has

realized the influence of women‘s sport players and is preparing to accommodate such an

increase and as women increase their consumption the younger generation is decreasing

because of the popularity of other footwear.

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PORTER’S FIVE FORCES MODEL

POTENTIAL ENTRANTS:

Other sportswear manufacturers expanding their portfolio

Cheap copies from the Far East

Threats of New Entrants: (Low)

Barriers to entry in the athletic footwear industry are high due to several factors.

It is as very capital intensive industry. Even though it would not be difficult for a new

company to obtain the raw materials and the labor needed to produce shoes, there is

almost no chance for them to gain popularity in such a mature industry with some of

the strongest brand names in the world. Brand loyalty is extremely strong and it would

be very hard for a new entrant to ―steal‖ loyal customers from the already existent

players. Economies of scale play a huge role as well and the bigger players have an

advantage of producing the products at a lower price than compared with newer

entrants. As the output is bigger and the fixed costs of factories , machinery, marketing

and R&D will be decreased per unit. Both marketing and R&D constitute high costs

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and since new entrants will not be able to take advantage of the economies of scale

they will be less competitive.

The industry itself is in a consolidation phase and only the big ones will survive.

The large companies are strategically and constantly acquiring smaller companies.

Some of the most popular acquisitions include Reebok by Adidas, Converse by Nike,

Saucony by Stride Rite, etc. Small companies are bought before they become a threat

to the bigger ones and before they have a chance to gain market share. In other words,

it is impossible to grow in this industry because someone will take over your

company.

BUYERS:

The buyers of sports footwear have changed in the past decade.

There has been an increase in women purchasing the shoes,

Generation Y has a different tastes and purchasing methods

Customers more affected by price

Buyer Power: (Very High)

The buyers for this industry are retailers and end users.

The footwear retailers, i.e. Footlocker, Wal-Mart, range in sizes. However, the top

25 retailers account for two-thirds of the sales of athletic footwear- approximately

$15 billion in value. New retailers are entering the market, such as ―big box stores‖

and vendors that open their own stores. The lack of concentration among buyers

brings down the margins and gives the power to the vendors. Retailers also have no

power in determining the design of the product. Therefore the big footwear

manufacturers generally dictate the price of their shoes.

In order to gain more power buyer companies have started merging- Footlocker –Foot

Action, Sport Authority- Gart. This consolidation will transfer some of the power

from the big players because in order to be industry leaders they will need these well -

recognized retailers as well. Growing margins suggest that buyer power has been

increasing.The end user of the industry is also considered a buyer and he has

unlimited power.Every company is fighting for the loyalty of the end user through

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constant innovations and brand management. However, if the user is dissatisfied, he

can easily switch the brand to another one.

SUBSTITUTES:

Substitutes for athletic shoes are shoes in another category.

When required for professional use there is no substitute goods, but as a fashion item

there are many other goods that could be purchased.

Substitutes: (Low)

Lifestyle athletic shoes sales, for instance are growing at the fastest annual

rate and Puma is undoubtedly the leader in this segment- with more than 50%

sales growth.

First, in the sports industry, other types of apparel could also be seen as a substitute,

in terms of building image and style.Second, in the same product category, other

types of shoes are also substitutes, such as slippers, heels, boots, flip-flops, etc.

Even though sneakers are still the most popular type of footwear in the

world. Companies such as Steve Madden and Sketchers are also seen as threats.

Steve Madden‘s ―thick high heeled shoes‖19 are very popular and since thick heels

are considered a more comfortable version among women they could be a substitute

for sneakers. Sketchers introduced non-athletic heel-less shoes also called ―sneaker

mules‖20 These shoes, first gained popularity in Europe but now are also becoming

popular in the United States.

SUPLIERS:

-Using production facilities in the Far East has give Nike economies of scale. Although there

are now problems arising from these factories, they are switching to making there own goods,

labour and political unrest causes delays in manufacturing and shipping of the goods,

-Supplier Power: (Low)

-The suppliers do not have the power to bargain the price of their product, since there are

numerous suppliers.

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There has been some standardization of production in the industry due to growing

concerns of labor practices of the suppliers and manufacturers. These practices have

been damaging the image of some companies including Nike.Therefore, the big

companies prefer to work only with approved manufacturers and suppliers that are

known to follow these labor standards. Both Adidas and Nike have created a system to

ensure that all the high quality of the product, the working conditions, and the

distribution are at high standards.

COMPETITIVE RIVARLY:

Reebok, offering more choice of shoe, introducing endorsement by

sports personalities, sponsoring sporting leagues

Adidas have recovered from the problems that plagued them, and have

a good product mix, covering a wide range of sports.

In order to stay competitive and have presence in all sectors, many mergers and

acquisitions, i.e. Adidas and Reebok, are taking place and the market is going towards

consolidation. As a result, maintaining a single brand image for companies like Nike

becomes really a tough ask.In general, with three out of five forces being high,

emerging market does not look like a favorable environment. However, on continuous

marketing an educating effort, this market might be transferred into a growth region

for all companies.

Technology in Products

ž Nike has historically had some of the most cutting-edge products on the market.For

example, Nike teamed up with Apple and launched the ―Nike + iPod‖ line of products.This

technology allows consumers to connect their iPod devices to sensors inside the shoes to

record time, distance, pace, and calories burned.

Manufacturing Skills

ž Due to cheap labor in foreign countries, Nike outsources virtually all production to other

areas of the world.This behavior has become an industry standard, with all major competitors

also outsourcing production.Consequently, no competitor has a major advantage in

manufacturing.

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Strength of Patents

ž One of Nike‘s most revolutionary technologies comes through its footwear

cushioning.The cushioning systems in a shoe serve to distribute pressure evenly among the

foot, absorb shock, and deliver comfort to the user.

Nike has patents on four cushioning technologies:

Nike Air: Nike Air Max is a line of shoes first released by Nike, Inc. in 1987. The

shoe was originally designed by Tinker Hatfield, who started out working for Nike as

an architect designing shops and offices; he also designed the Air Jordan shoe

.

Nike Zoom: Nike Zoom cushioning is part of the Nike Air family, and—like its

siblings—it‘s lightweight and durable. Because Nike Zoom cushioning is incredibly

thin, it brings the foot closer to the ground and enhances stability, especially during

quick cuts and multi-directional movements. After impact, the tightly stretched fibers

inside the pressurized air unit quickly bounce back into shape, providing a super-

responsive feel and improved awareness of the surface you‘re playing on.

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Nike Air Max: Max Air is part of the Nike Air family and designed to provide

maximum impact protection during repetitive landings. Shoes with Max Air feature

less midsole material and larger-volume airbags for lighter weight and maximum

cushioning you can see.

Nike Shoe: Nike Shoe technology is a revolution in cushioning and impact protection.

Nike Shoe technology provides an optimal environment for cushioning, a slower rate

of impact loading (helping reduce the risk of impact-related injuries) and a uniquely

responsive feel. The highly resilient foam in Nike Shoe columns is made of energy-

efficient material that enhances durability and spring.

ž Although some of Nike‘s earlier patents are beginning to expire, they still hold patents

on the newer technologies.In the past, competitors have tried to match rival Nike‘s cushioning

systems, but none have matched their success.

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Economies of Scale

ž Nike is the single largest producer of athletic footwear and apparel, allowing them

large cost advantages over competition.Larger companies tend to have major economies of

scale over smaller companies in areas such as distribution and marketing.Nike is so large that

many of the company‘s suppliers depend on Nike to remain in business.

ž Application of Information Technology

ž Being such a large corporation, Nike relies heavily on IT in order to manage its supply

chains.Nike admits that it is at serious risk if a breakdown were to happen in these systems,

resulting in bad effects on their business and financial condition This puts them at a

disadvantage against some of their smaller competitors, who do not rely so heavily on IT .The

very fact that they are such a large company makes them more likely to have these problem.

INTERNAL ANALYSIS

NIKE MANAGEMENT STRUCTURE

Nike management structure is composed of a matrix organizational structure commonly

known as a flat organizational structure. Nike is one of the few companies that has been able

to apply this model effectively.The Compensation Committee is responsible for overseeing

the performance evaluation of the CEO. The Compensation Committee considers (1)

achievement against approved financial performance measures and targets (such as revenue,

net income, and earnings per share), and (2) other factors such as leadership, achievement of

strategic goals, market position, and brand strength, which are signals of Company success.

The Compensation Committee endeavors to reflect the CEO‘s performance in the CEO‘s

compensation. The Board plans for succession of the CEO and certain other senior

management positions in order to assure the orderly functioning and transition of the

management of the Company, in the event of emergency or retirement of the CEO. As part of

this process, the Chairs of the Nominating and Corporate Governance Committee and the

Compensation Committee, in consultation with the CEO, assess management needs and

abilities in the event a transition becomes necessary.A strategic plan is something that a

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company needs in order to succeed at anything. Nike needs to develop this plan and move

forward from this fiscal year in 2010. The manager of Nike needs to set goals and determine

the best way to achieve them. Core values upon the crew at Nike and ask the question: What

does this organization stand for? A revamp of all of this is need if Nike is to make sales

revenue increase in 2010. A core value that can be put into the Nike Company is telling the

employers that they need to be winners, as opposed to heroes. A SWOT analysis could be

created for Nike by a manager and the employees will read it and will see an assessment of

how the company is doing in terms of strengths, weaknesses, opportunities, and threats. These

will keep the companies employees on its toes.Functional organization is something that Nike

might want to take into consideration when thinking about a change in their organization.

They can cluster groups together who are alike and who can compatibly plan and keep the

company in its prime. Directing is providing focus and direction to others within the Nike

Company and the managerial can take directing and use it to their advantage. With Nike‘s

board being an extremely experienced and thoughtful board they can take a lot of ideas from

each other. Even the other employees such as middle managers and low level managers can

give input into the companies managerial such as marketing in other companies and making

sure the quality of Nike‘s product is better than its competitors. Phil Knight can set high, yet

achievable goals for his employees to look forward to. He could improve his company by

using the principle of leverage. Phil Knight could use new technologies in sneakers, apparel,

and sports equipment to successfully manage his company. He can use networking by

socializing with companies he could cooperate with such as he has done with Apple in the

past to increase revenue.

MARKETING

Significant role for the competition of market share in the footwear industry plays marketing

in order to strengthen the brand image, develop product identity and expand customer loyalty.

Competition between players is n o n - p r I c e but rather based on differentiation in brand

image and product innovations. Therefore, substantial investments in marketing campaigns

are required. Nike invests annually between 11% and 13% of revenue in marketing. Nike

focuses all of their attention on the Athlete, but delivers much more than shoes; they deliver

all the surrounding products that the Athlete needs for experience. It is part and parcel of what

makes Nike such a great consumer-focused brand.

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Marketing Mix

1. Product:

Nike offers a wide range of shoe, apparel and equipment products, all of which are currently

its top-selling product categories. Nike started selling sports apparel, athletic bags and

accessory items in 1979. Their brand Cole Hana carries a line of dress and casual footwear

and accessories for men, women and children. They also market head gear under the brand

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name Sports Specialties, through Nike Team manufactures and distributes ice skates, skate

blades, in-roller skates, protective gear, hockey sticks and hockey jerseys and accessories.

2. Price:

Nike‘s pricing is designed to be competitive to the other fashion Shoe retailer. The pricing is

based on the basis of premium segment as target customers. Nike as a brand commands high

premiums. Nike‘s pricing strategy makes use of vertical integration in pricing wherein they

own participants at differing channel levels or take part in more than one channel level

operations. This can control costs and influence product pricing.

3. Place:

Nike shoes are carried by multi-brand stores and the exclusive Nike stores across the globe.

Nike sells its product to about 20,000 retail accounts in the U.S. and in almost 200 countries

around the world. In the international markets, Nike sells its products through independent

distributors, licensees and subsidiaries. The company has production facilities in Asia and

customer service and other operational units worldwide.

4. Promotion:

Promotion is largely dependent on finding accessible store locations. It also avails of targeted

advertising in the newspaper and creating strategic alliances. Nike has a number of famous

athletes that serve as brand ambassadors such as the Brazilian Soccer Team (especially

Ronaldo, Renaldo, and Roberto Carlos), LeBron James and Jermaine O‘Neal for basketball,

Lance Armstrong for cycling, and Tiger Woods for Golf. Nike also sponsors events such as

Hoop It Up and The Golden West Invitational. Nike‘s brand images, the Nike name and the

trademark swoosh; make it one of the most recognizable brands in the world. Nike‘s brand

power is one reason for its high revenues. Nike‘s quality products, loyal customer base and its

great marketing techniques all contribute to make the shoe empire a huge success.

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Market Share

Nike was the clear market leader, with 31% of the global athletic footwear market in 2007.

Looking at the market in the United States, Europe, or Asia reveals a similar picture: Nike's

market share in these regions hovers around 36%, followed by Adidas at 20%, with Puma and

New Balance as distant third and fourth.

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The market for athletic apparel is both larger--$49.5 billion in 2005--and more diffuse; the top

five firms control only 27% of the market. Nike is, however, also the global leader in apparel,

with a 7% market share in 2007.

NIKE RESEARCH AND DEVELOPMENT

Product Research and Development

Nike believe our research and development efforts are a key factor in our past and future

success. Technical innovation in the design of footwear, apparel, and athletic equipment

receive continued emphasis as NIKE strives to produce products that help to reduce injury,

enhance athletic performance and maximize comfort.

In addition to NIKE‘s own staff of specialists in the areas of biomechanics, chemistry,

exercise physiology, engineering, industrial design and related fields, we also utilize research

committees and advisory boards made up of athletes, coaches, trainers, equipment managers,

orthopedists, podiatrists and other experts who consult with us and review designs, materials

and concepts for product improvement. Employee athletes, athletes engaged under sports

marketing contracts and other athletes wear-test and evaluate products during the design and

development process. The Nike Sports Research Laboratory (NSRL) is located on the Nike

campus in Portland, Oregon in the United States of America. The research and development

(R&D) centre's role is to identify the physiological needs of athletes. The NSRL works

directly with Nike's design teams and has established partnerships with major universities

throughout Asia, Europe and North America.

Nike’s Research Program

Nike has been in the Research & Development in the market for quite a long time. The

research that it has been carrying out relates to the earlier STP analysis which allows Nike to

create a market for its products. Also Nike has a history of constantly innovating new

products and attain the first-in-the-market advantage and charge a premium price. Nike

spends a lot out of its revenue into R & D of new products and designs to constantly stay

ahead of the competition. Nike conducts both qualitative and quantitative research

forgathering vital information for its products and new launches. The qualitative research

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refers to the consumer purchasing behavior like why, how, what do they decide on the basis

of Nike‘s image as well as products. The quantitative research deals with what are the results

of the company i.e. revenue against cost and other financial analysis .Nike indulges into

research analysis of consumer markets as well as competitor‘s analysis and thus

understanding the consumer behavior and their buying pattern. Nike does extensive research

in the attitudes and tastes and preferences and their changing pattern by having questionnaires

filled up by its customers online as well as personally. It also indulges into personal

interviews with its valued-customers to make some necessary changes that they might require.

This is how the company came to be recognized as a high valued by its customers and thus

attain maximum loyalty. Also the company came up with the idea of customization of their

products online through this type of research itself which has yielded high results. Nike

products undergo a rigorous testing process that covers a huge variety of testing surfaces

(regular basketball hard wood, soccer turf, a running track, and endless outdoor testing on

various terrain), and takes into account four major factors, geography, gender, age, and skill

level as well as profession. All of this combined with the results of about a dozen other tests

are use to develop new, user-friendly products like the Nike Shox, Nike Air, and other Nike

basketball and running shoes. This is mainly because Nike needs to constantly be aware of the

changes in the consumer buying behavior which can only be done through various researches.

Nike has an underground research lab full of evil geniuses toiling to create the newest and

most advanced designs and technology in the sneaker business. It‘s true that Nike‘s research

lab has grown up considerably from its early days with Bill Bowerman and a waffle iron to

create the Nike Waffle Racer. Today, it commands approximately 13,000 square feet

containing some state-of-the-art research equipment.

Research is primarily divided into three parts:

Biomechanics

How the body moves.

Physiology

How the body works, especially under stress.

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Sensory/Perception

The evaluation of how a product works, feels, and wears; how a person feels when wearing

the shoes.

The Nike Sports Research Laboratory is located on the Nike campus in Portland, Oregon in

the United States of America. Nike‘s research team has spent more than 16 years dreaming,

researching, developing and testing the possibility of attaching springs to the bottom of an

athlete‘s foot. Nike Shox, the most acclaimed technological development makes the dream a

reality (―Nike‖). Therefore, by advancing in technology, Nike holds a competitive edge in the

market.

PRODUCTION SYSTEM

Location of Facilities

Nike‘s facilities are located throughout Asia and South America. The locations are

geographically dispersed which works well in our mission to be a truly global company. The

production facilities are located close to raw materials and cheap labor sources. They have

been strategically placed in their locations for just this purpose. In general, the facilities are

located further from most customers, resulting in higher distribution costs. However, the cost

savings due to the placement of our production facilities allows for cheaper production of our

products despite the higher costs of transporting our products. As Nike continues to expand in

the global economy and increase its market throughout the world, these dispersed facilities

will prove to be beneficial.

Newness of Facilities

Our facilities abroad have attracted bad publicity in recent years. Though our facilities

comply with local labor standards, generally, they have not met U.S. standards. We want to be

a leader and set a responsible corporate example for other businesses to follow. As part of

Nike‘s new labor initiative, we commit to:

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Expanding our current independent monitoring programs to include non-

governmental organizations, foundations and educational institutions. We want

to make summaries of their findings public;

Adopting U.S. Occupational Safety and Health Administration (OSHA) indoor

air quality standards for all footwear factories;

Funding university research and open forums to explore issues related to global

manufacturing and responsible business practices such as independent

monitoring and air quality standards.

While establishing these policies is a step in the right direction for Nike, the difficult task at

hand will be the implementation of the aforementioned goals to ensure the success of the

program.

INTERNAL FACTOR EVALUATION

STRENGTHS:

• Strong brand recognition

• Internet sales

• Growing international presence

• Superior research and development department

• Strong financial returns

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• Strong sense of culture in the working environment

• Great celebrity spokespersons

• Automatic replenishment system

• Successful experience being competitive

• Nike doesn‘t own any factories

• Successful marketing campaigns

WEAKNESSES:

• Lack of stores catering to the active females

• Poor employment practices at their international manufacturing sites giving a bad

reputation

• Heavy dependency on footwear sales

• Issues with Footlocker

SWOT ANALYSIS

NIKE should use result of the SWOT matrix analysis to make strategic planning . SWOT

does not show how to achieve a competitive advantage because capabilities, threats, and

strategies change, the dynamic of a competitive enviroment may not be revealed in a single

matrix. SWOT analysis may lead the firm to overemphasize a single internal or external factor

in formulating strategies. There are interrelationships among the key internal and external

factors that SWOT does not reveal that may be important in devising strategies.

STRENGTHS

Nike has a strong global brand which everyone will know by its logo. The logo itself needs to

be presented without the name and everyone will know what it is, that is how powerful the

brand is. Some companies require their names to be present but in this case that is not true.

This is garnered a long term customer loyalty base where the products are synonymous with

high quality clothing and fitness trainers. The power of the brand is also evident in the fact

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that Nike has well known athletes and other celebrities which will put further backing to the

brand if it is deemed to be ―cool‖ to wear. Athletes like LeBron James, Roger Federer and

others such as Andrew Luck where each of these people represent a different sport from

basketball to tennis to American football respectively. They promote the company by wearing

Nike branded clothes from head to toe to more recently wrist in the form of the Nike

FuelBand. The company is a clothing brand and there is little to innovate in. However, Nike

has managed to find ways to innovate their products and to provide a range for various

different price points to cater for different demographics. This shows that the company is

versatile in its product offering, whilst also remaining relevant as the industry leader. The new

Flyknit running shoes, the FuelBand wristband and the Dri-Fit clothing technology are all

innovative and are applicable to different products. The Flyknit trainers are very unique where

they allow the runner to have a bare foot feel experience, while the FuelBand moves into the

new market of wearable technology with a focus on keeping active. The FuelBand allows the

user to connect it to their smartphones and to compete against their friends to give a

competitive side to always moving and being active.

WEAKNESSES

Due to the strong brand, the company can be seen as exploitative and greedy. The company

can stick their logo on a plain white t-shirt and sell it for over triple the manufacturing cost,

not to mention the fact that the company has had problems in the past with its manufacturing

processes. The high mark up on the basic products allows the company to generate large

levels of profits which can be a seen as unethical, but they do operate as a for profit company.

The supply chain is the most important aspect of Nike‘s business model, as they need to

ensure that they have a solid supply chain from sourcing raw materials to manufacturing and

to delivery logistics. Each of these areas creates a cost for the company, much like any other,

and they could try to squeeze their factory workers with lower wages and/or bad working

conditions. Due to the strong brand, the company can be seen as exploitative and greedy. The

company can stick their logo on a plain white t-shirt and sell it for over triple the

manufacturing cost, not to mention the fact that the company has had problems in the past

with its manufacturing processes. The high mark up on the basic products allows the company

to generate large levels of profits which can be a seen as unethical, but they do operate as a

for profit company. The supply chain is the most important aspect of Nike‘s business model,

as they need to ensure that they have a solid supply chain from sourcing raw materials to

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manufacturing and to delivery logistics. Each of these areas creates a cost for the company,

much like any other, and they could try to squeeze their factory workers with lower wages

and/or bad working conditions.

OPPORTUNITIES

Technology is moving very quickly, and the industry is coming up with new different form

factors of usable technology. Mobile phones became smartphones, CDs became MP3 players

and VHS became Blu-Ray discs. Nike has dabbed its hand in technology when it created

Nike+ with a collaboration with Apple where is sold as a smartphone feature to track running

distances and calories burned. Nike had then moved onto making its own wearable fitness

technology with a fitness watch, the Fuel Band and with a game with the kindest camera for

Xbox 360. Nike could look at investing into more of these types of wearable technology so

that they technology is already placed in smartphones. This would be an excellent way to

create licensing revenue as well as having a wider reach of consumers.

There are various different types of shoes that Nike offers and the products are seemed to be

blurring into other product ranges. Within the Nike Free range, there is Freerun 3.0, Freerun

5.0, Freerun+ 2ID, FlyKnit, FlyKnit Lunar1 +ID and it can be confusing when picking a

running shoe. There are only slight differences in the product but the differences can be hard

to understand when there is no expanded explanation. The only way in which a consumer can

understand these differences is to spend time reading each one and comparing it, or physically

going to a Nike store and getting a sales person to assist, and there is no guarantee that the

sales person knows everything. Nike could try and streamline the naming of some of their

products within certain ranges. This will allow the company to maximize the customers

understanding of the products on offer and the features they represent.

THREATS

For large multinational corporations, the profit generated from different countries is a great

way to continue operating when the domestic market is reaching saturation. The main risk

with this is currency fluctuations and how a massive change in the foreign and domestic

currency will make any profits overseas can turn it into a loss. Companies have had to create

finance divisions specifically to manage their currency risk, most likely using a combination

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of forward contracts, futures contracts and call/put options. The recent decline in the Indian

Rupee shows how the company can benefit from drops in foreign currencies where the goods

that Nike will ship to other countries will be even cheaper. The main problem with any

currencies changing would be domestic currency for Nike which will be the US Dollar. The

US Federal Reserve choosing to continue its asset purchase scheme has allowed the US

Dollar to strengthen stock markets to be more risk taking and choose the US market to invest

in and the Federal Reserve seems to be continuing asset purchases for the foreseeable future.

The recent collapse of a Bangladesh clothing manufacturing factory caused major publicity

problems for fashion retailers. The collapse brought to light the bad working conditions and

the major problem of cutting corners in countries where building legislations are sometimes

ignored, especially in the case of the Bangladeshi factory. Nike has had problems with their

factories which they have actively and vocally created internal codes of conduct to address

concerns of the public. When it comes to the problems of the collapse, the developed world

would find it ways to boycott a company is there are seen to be unethical. Nike could find

difficulties domestically if they encounter problems with sales if they have any problems with

their factories.

Current Strategies and Goals

Nike has in placed several strategies that encompass improving growth and profits in a

variety of areas. The struggling economy has not changed Nike's attitude towards growth.

One strategy that Nike focuses on, in continuing to help the company grow is Person

Marketing. Nike has been using the best athletes, and sports teams (or clubs) all over the

world to help market their products. The regenerative nature of sports has allowed Nike to

sign new upcoming stars like LeBron James, Carmelo Anthony and others. These are the

athletes that will push Nike beyond their expectations and will set the standards for the next

generation to exceed. Nike's second greatest source of potential lies with the products the

company is working on. Nike's design team is constantly developing new concepts in speed

and agility to give athletes the latest innovative equipment to improve performance. The third

strategy that Nike uses, perhaps the most important, is advertising and marketing. These two

components capture the essence of the product and the attention of consumers around the

world. These strategies support the financials especially profit margin and market share.

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Under consumer measures Nike's strategies also support the percentage of customers who

purchase Nike products based on image.

Price and Earnings

To find out how much the market is actually willing to pay for each dollar of annual earnings

of Nike, we look at the Price/Earnings ratio. Currently the ratio is 17.9 showing that Nike is

not a risky investment. This is very valuable in comparing companies within the same

industry. The price/sales ratio uses the invested capital of the company and then divided by

sales over the past 12 months. This figure is usually seen as the lower the better for investors.

Granted there are far more competitors up and coming these days, we think Nike has a solid

place in the market and will only be growing in the next years and years to come. The return

on assets ratio has been considerably increasing from 10.37 in 2002 to 15 in 2007. The ratio is

higher than industry average which is at 14.1. Creditors, bondholders, and shareholders like to

see high return on their investment. This indicates that the business is sufficiently using its

assets. Nike Inc. is an efficient company as it boasts a higher gross profit margin than its

competitors and industry. During fiscal 2007, Nike Inc. gross margin has increased from 44%

in 2006 to 45.9% in 2007. It is higher than the industry average of 41.83%.

Analytical Theory Comparison

Project investment can be determined by using an analytical theory of project investment.

―The Analytical theory enables us to make precise calculations of returns of difference

projects under different kinds of environments.‖ (Chen, 37) We will examine the relationship

between fixed cost and variable cost at different levels of uncertainty. In NIKE‘s case, as

fixed costs are increased, variable costs decrease rapidly in a low uncertainty environment

(see exhibit 1). In relation to NIKE the high fixed cost represent the large amount of

marketing expenditures, and the variable costs are related to the low labor and manufacturing

costs.

This analytical theory differs from the real option theory because it is an initial value problem,

valuing the outcome as a variable cost to the project (C). Furthermore, after determining the

variable cost of a project (C) , the profit of a project can be determined based on the variables

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of S (present value of the projects cash flows), K (fixed cost of the project), Q (market size or

output of the project), and C.

Exhibit 1:

A project with a high fixed cost will generate high returns if the level of uncertainty is

stable and the market size is large, and a project with a low fixed cost will benefit largely

from a small, unstable market. (see exhibit 2) ―When an industry becomes mature and

uncertainty decreases, increased in fixed costs, K, (capital investments and accumulated

human capital), drive down variable cost rapidly, which permits leading companies to lower

product prices and drive out small high variable cost companies. In a mature industry only

very few big companies can stay in business. Also, large companies often develop highly

optimized structures to reduce uncertainty and bring down variable costs in producing

particular products‖ (chen,40). In Nike‘s case, the company is able to use highly advanced

technologies, such as EDI‘s and CAD‘s to reduce variable cost. While using the analytical

theory of project investment,

0

1

Var

iab

le C

ost

5 10 15 20

Level of fixed Cost

High Volatility

Low Volatility

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Exhibit 2:

Rat

e o

f re

turn

Low Fixed Cost

High Fixed Cost

Market size

43

The Growth Factors Spiking NIKE Revenues and Earnings

NIKE’s businesses

Based in Beaverton, Oregon, NIKE (NKE) is the world‘s largest sportswear and footwear

company. The company designs, markets, and distributes footwear and apparel products for a

number of sports. Its core sports categories include running, basketball, and soccer.

No 1 sports brand

NIKE is the world‘s number one sports brand.1 Its brand value was estimated at $19 billion

by Forbes Magazine in 2014. Besides the NIKE brand, the company‘s stable of brands also

includes these:

Brand Jordan – named after iconic basketball player Michael Jordan

Converse – acquired in 2003

Hurley – targeted at action sports like surfing and skateboarding

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NIKE’s quarterly earnings update

The company reported financial results for the second quarter of fiscal year 20152 on

Thursday, December 18, 2014. NIKE‘s performance continued to outperform with the firm

beating consensus Wall Street estimates for revenues, net income and earnings per share, or

EPS.

NIKE’s outperformance

Despite being around for over 50 years, NIKE continues to deliver above-average growth and

earnings. In each of the past eight quarters, NIKE has beaten Wall Street estimates on net

income and EPS. In terms of revenues, this is the sixth quarter out of the last eight that the

company‘s come out ahead of revenue estimates.

Series components

In this series, we‘ll analyze the results of the past quarter and the reasons why NIKE

continues to outperform. We‘ll discuss the company‘s key growth drivers, both present and

future, and how its market share and competitive position compare to industry peers such

as Under Armour (UA) and Adidas (ADDYY).

UA and NKE are part of the Consumer Discretionary Select Sector SPDR ETF (XLY) and the

SPDR S&P 500 ETF Trust (SPY).

1. ―The Forbes Fab 40: The World‘s Most Valuable Sports Brands 2014″ ↩

2. Quarter ending November 30, 2014 – Fiscal year ends on May 31, 2015 ↩

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RECOMMENDATION

FIRST RECOMMENDATION

Product Development

We provide comprehensive consulting services from idea to product launch.NIKE by the

sport works with start-ups as well as established companies, utilizing virtually all disciplines

required to bring a new product to market. Some of these disciplines include:

• Market research and focus groups

• Marketing communication

• Public relations

• Sales and sales coaching

• Industrial design

• Mechanical design

• Mechanical fabrication

• Short-run manufacturing

• High-volume manufacturing

• Plastics tooling and production

46

• Application software development

• Funding sources

Your creative idea infused with our strategic expertise will maximize the success of your

product in the marketplace.

SECOND RECOMMENDATION

Market Development

A company follows a market development strategy for a current brand when it expands the

potential market through new users or new uses. New users can be found in new geographic

segments, new demographic segments, new institutional segments or new psychographic

segments. Another way is to expand sales through new uses for the product.

The key difference between this growth strategy and market penetration is that the

definition of the target market must change. In other words, the market potential must

increase through this strategy, whereas the market size is "fixed" with a market penetration

strategy.

THIRD RECOMMENDATION

Market Penetratıon

A market development strategy targets non-buying customers in currently targeted

segments. It also targets new customers in new segments. Market development strategy

entails expanding the potential market through new users or new uses. New users can be

defined as: new geographic segments, new demographic segments, new institutional segments

or new psychographic segments. Another way is to expand sales through new uses for the

product. Penetration is a measure of brand or category popularity. It is defined as the number

of people who buy a specific brand or a category of goods at least once in a given period,

divided by the size of the relevant market population.

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CONCLUSION

NIKE Company has still well position on market and our increasing will regularly and we

will be best largest sports wear and shoes manufacturer.

We are already implement our current strategy of focusing strategy and diversification

strategy .But with some little bit focus on different conjectures.

We have recommended some strategies NIKE. They are Advertisıng, Brandıng, Sellıng,

Manufacturıng, Organızatıonal and Human Resource Management Strategy.We have chosen

one of them and it is Advertisement and Brandıng Strategy.We think that if we are change our

advertisement shape and tend to make a advertisement which touching the community values,

we will get much more sales and revenue from this market.

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Refferences

1-) www.nike.com

2-) www.slideshare.net

3-) www.wikinvest.com/stock/Nike

4-) www.assignmentstudio.net

5-)www.wikipedia.org/wiki/Nike

6-) www.financeyahoo.com

7-) www.google.com

8-) www.newyorktimes.com

9-) www.dailymarkets.com/stock/2010/09/22/earnings-preview-nike-inc/

10-) condor.depaul.edu/aalmaney/StrategicAnalysisofNike.htm

11-) http://marketrealist.com/