NIKENick Bevilacqua, Nick

Cometa, Ryan Delgado, Shaun Jameson

To bring inspiration and innovation to every athlete in the world.

"If you have a body, you are an athlete." - Bill Bowerman

Agenda Current State of Nike 7S Framework

Strategy Structure Shared Values Skills Staff Systems Style

Porter’s 5 Forces Model Supplier Power Buyer Power Threat of New Entry Competitive Threat of Substitution

SWOT Analysis Strength Weakness Opportunities Threats

Ways to Increase Profit

Nike’s Dominance 28 Contracted Entities Own 80% of sports apparel market Nike Shares = $95.58 Adidas = $34.08

Stock

7S Framework The 7’s are strategy, structure, system,

shared values, style, staff, and skills. The model is based on the theory that,

for an organization to perform well, these seven elements need to be aligned and mutually reinforcing. The model can also be used to help identify what needs to be realigned to improve performance or to during types of change.

Strategy Air Jordan shoe featuring Michael Jordan Creating “trendy” products overseas NikeID customization Nike Focus:

High end market Increasing middle market share Low price range Broaden spectrum

Structure Over 47,000 branches in

over 100 different countries across the world

Beaverton, Oregon CEO and Director of

Operations coordinate NikeID personalization Decentralizing decision

making ensures customer satisfaction

“Just Do It” was incepted in1988.

Fitness craze of the 80s

Shared Values Mission statement Nike wants to build relationships around

trust and respect Employees are given an hour and a half

for lunch to play sports Promoting a lifestyle

Skills Strongest skill is to advertise and

market our products Merged with other companies such as

Livestrong Converse Umbro Cole Haan

NFL recently signed with Nike to be their official apparel provider

Bring in upwards of $350 million annually

Nike has improved oversea factory conditions

Staff One of Nike’s strong

specialized team member is Co-founder, Philip H. Knight, has been with Nike since its inception.

Board of Directors overhaul

Systems Research and

Development & Advertising

Nike is THE brand to wear

Controlling 80% of the market

Increased total revenue over 4 million and profit by 2.5 million in one FY

Style Come into work and

promoting team building

Incorporate sports to implement competitive spirit for employees

5 Forces Model

Supplier Powers Stores located in 45 different countries

& over 700 shops throughout the world. Worldwide spread creates equal

sourcing between the merchants Manufactures are wholly-owned

businesses of NIKE, with independent contractors in China and Taiwan.

Materials used in our apparel products are:

Natural and synthetic fabrics and threads, Plastic and metal hardware, Specialized performance fabrics

Buyer Power Extensive research done to

figure out what our customer’s preferences in style, comfort, and price

Buyers chose due to top quality and high tech apparel in combination with the style and availability

Foot-up on the new entrepreneurs

Brand recognition Top athletes in the world

wear brands

Threat of New Entrant #1 leading competitor in athletic and apparel Secured Intellectual Property in its stream line

products such as : Air Jordan’s Nike+ iPod NikeAir Max.

Mimics TV ads generate approval rating of +75% of

viewer.

Competitive Rivalry Differentiation

strategy Strategies:

Warranties Brand image, technology,

features, services, quality/ value

Must know competitor attributes and how much they earn

Threats of Substitution High quality = Higher prices, Associated with cost of the raw materials Possible Solutions:

Incorporate a product that is lower quality than standard.

Incorporate more sales and deals for customers.

SWOT Analysis

Strengths #1 sportswear brand in the world Employ about more than 30,000 people

world-wide Strong sense of marketing campaign by

sponsoring top athletes

Weakness Income of business is

heavily depended on footwear market

Charged with violations of overtime and minimum wage rates at overseas workforces

Alleged child labor in Cambodia and Pakistan to produce soccer balls

Opportunities

Several see it as a fashion brand rather than just a sportswear

Many international regions that could be tapped into and make great profit

Spread their brand through top athletes and big corporations

Threats Competition for

sports shoes and sportswear is always increasing

Experiences harsh publicity feedbacks due to its wide spread advertising

Consumers are constantly shopping around for a better deal with equivalent quality

Profit and Industry Report

High Profits

Lower Profits

• 2 major competitors

• Highest quality

• Little to no entry barriers

• No entrants

• No substitutes

• Customer base increasing daily

• Suppliers Increasing

• More owned companies

• 2 major competitors

• Able to price high

• No quality like Nike

• No prestige like Nike

• Customers in no shortage

• Dozens of sports and icons

• Adidas is only worry

Group Ideas for Profit Create specialized stores Broaden range of products Outsource ethically Stay in positive news Expand beyond footwear sales Work closer with 4 major sports Get brand at the major sports events Give more NikeID options

Strategic Planning DepartmentRevision for Higer Profits

NIKE, Inc.One Bowerman DriveBeaverton, OR 97005

December 8, 2011